Company Formation Dubai



Open an IT Company in Dubai

Updated on Monday 21st August 2017

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Dubai presents many investment opportunities for those wanting to open a company. In the IT industry, many large enterprises have opened subsidiaries in Dubai, but the city also offers plenty of choices for smaller IT companies as well. The incorporation process is quite simple once all the requirements are met. 

Obtaining a professional license for an IT company in Dubai

Before setting up the Dubai IT company, one must obtain a professional license that will allow him/her to engage in business activities. The professional license is issued by the Department of Economic Development (DED) in Dubai. The first step for receiving the license is to hire the services of a local agent who will deal with obtaining the employment visa, the license and any other required documents.

The steps for obtaining the professional license are the name reservation and the approval for the activity to be undertaken with the Department of Economic Development in Dubai. IT companies in Dubai can be registered as professional firms with full foreign ownership or as sole proprietorships.

Civil companies are also allowed when the owner has one or more partners. There is no minimum share capital for civil companies in Dubai, but the amount must be stated in the articles of association of the IT firm.

You can find out from the video below the main steps to open an IT company in Dubai:

What documents are required in order to open an IT company in Dubai?

The documents to be submitted with the Department of Economic Development (DED) in Dubai are the following:

  • -          passport copies of the person and his/her partners’ requesting the license.
  • -          proof of payment of the initial approval fee,
  • -          copy of the local partner’s naturalization book,
  • -          a no objection letter for expatriate partners from their sponsors,
  • -           partners in a professional license are required to pay 20,000 Dirhams each as a security deposit; a single investor must pay 10,000 Dirhams,
  • -          the partnership agreement must be signed in front of a notary.

The IT company must have a registered office which is why the owner is also required to add a tenancy contract when applying for the professional license.

Where can one start an IT business in Dubai?

The IT industry benefits from the support of the Dubai government and foreign investors can find many opportunities here. However, the development of the Dubai’s free zones allows for the creation of IT companies in dedicated free trade zones in the emirate, such as Dubai Media City, Dubai Internet City or Dubai Silicon Oasis which is considered the UAE’s “Silicon Valley” – hence the name of the free zone.

Before deciding on the location of the IT company, there is one a foreign citizen must consider: in order to register an onshore company in Dubai, one will need a local sponsor or partner who will own 51% of the company’s shares, while in the case of free zone companies, the foreign citizen will fully own the company. Our Dubai company formation agents can assist with the incorporation of IT companies in the Emirate and in any of its free zones.

If opening the IT company in Dubai implies obtaining the business license with the DED, the free zone authority will issue the license for an IT company established here.

Why open an IT business in Dubai?

Among the main reasons a foreign investor should open an IT company in Dubai is the lack of corporate taxes and the free repatriation of profits if the company is established in a free zone. Apart from the tax matters, foreign investors have access to a large pool of talented workers who have moved to Dubai from all over the world and one of the most developed Internet infrastructures in the region. Our company incorporation representatives in Dubai can offer more information on the incentives available for the IT industry in the UAE.

Establishing an IT company does not take long and our company formation agents in Dubai can provide you all the details necessary to set up the company. You can contact us for any questions related to business registration in Dubai.




  • Baskar Kanniah 2015-12-22

    Dear Sir / Madam, I'm planning to setup Free zone company for Tally Software Sales & Service plus accounting job under taking Please guide us the cost wit full details. Waiting for your prompt reply in this regards. With Kind Regards, Baskar.K

    Hello, you can send us your request via e-mail and one of our specialists in company formation will answer you. 

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