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how to start a software company in dubai

Start a software company in Dubai, UAE

There has been a significant surge in the amount of software companies opening in Dubai over the past several years. Dubai has earned a reputation as the “Silicon Valley of the Middle East” thanks to household, as well as hundreds of smaller businesses that provide custom software development services. Consequently, if this is your calling, it is idea to learn how to start a software company in Dubai.

In this article, we will be talking about how to start a software company in Dubai. Dubai is a fantastic area to launch your business, whether you are an app developer looking to create apps for your clients or have a concept for a new technology firm.

What is software company?


The future is made possible by technology. Starting a software firm could be your passport to success if you want to be at the forefront of the commercial world. But launching a business of any kind is no easy task.

One of the markets with the largest profits worldwide is the IT sector. And in the upcoming years, greater growth is anticipated. As a result of the increased need for new technologies, both aspiring and experienced entrepreneurs are embracing the trend of launching a software company. It is still challenging to enter the business world successfully despite the crowded market.

There is much more to starting a software company than merely having an original idea. Many business owners frequently hit a wall while attempting to get past the ideation stage.

Software companies are enterprises that specialize in developing goods and services that use cutting-edge technology. They frequently investigate coding, system solutions, software as a service (SaaS), and open-source.

Subscriptions, upkeep and assistance services, software licensing, and other services create money for a software company. The majority of them make use of cloud technology to give customers with easy access to transactions.

It is not the technical aspects of founding a software company that are difficult. Contrarily, that is largely optional. You do not have to have technical experience to run your tech startup. It is crucial that you understand the issue you are attempting to address and the strategy you will use to position your offering as the answer.

The difficulty of standing out in a sea of other reputable companies is another difficulty. Software companies are becoming more competitive as a result of the booming IT sector. You must remain competitive if you want to know how to start a software company in Dubai in the modern era.

Start your software company in Dubai, UAE.

In Dubai, where should a software company start?


Several factors have been responsible for the success of the IT sector in Dubai. Creating a contemporary infrastructure based on new technology is something that both the federal and municipal governments are interested in, as is the large influx of young international entrepreneurs working for Dubai-based businesses. Additionally, Dubai offers some of the top free zones in the world for investors looking to know how to start a software company in Dubai.

According to recent studies, Dubai’s IT industry is expected to grow significantly and produce 22 billion AED by 2020. The public is more likely to use apps made by software businesses, therefore the industry’s yearly growth is predicted to reach 3.5% beginning in 2023.

Those who want to launch a software company in Dubai might do it in one of the free zones or on the UAE mainland. The following are some of the free zones set up specially to house IT businesses, including software ones:

  • Dubai Silicon Oasis.
  • Media City.
  • Dubai Internet City.
  • Dubai Knowledge Village.

Our Dubai business incorporation advisors can assist with the establishment of a software business on the Dubai mainland or in one of the free zones.

Freezone Enterprise

Free zone regions are those designated business zones with low corporate and individual income taxes. The kind and nature of enterprise, the size, adaptability, and accessibility of office space, setting, and cost are only a few of the many variables that affect the choice of a free zone.

Establishing a company in a free zone is easier and more clear than conducting it on the offshore or mainland if you have the right expert help. The type of business you plan to create will determine whether or not you opt to open an office in the UAE free zone.

For entrepreneurs, opening a business in the UAE can be financially rewarding. The advantages of establishing a Free Zone business in the UAE include the following:

  • Total foreign ownership.
  • No income tax.
  • No corporate tax.
  • Quick setup processes.
  • State-of-the-art infrastructure.
  • Business flexibility.
  • Expansion opportunities.
  • Different business activities.
  • Residence visa support.

Mainland Enterprises

Dubai is a place full of opportunities. Many economists and business experts consider this city as the greatest spot to launch your business. This due to the amenities like world-class infrastructure, reliable connectivity, qualified workforce, a multicultural workplace, and more.

All private business entities and the individuals who make up those entities are authorized to conduct commercial business operations on the Dubai Mainland by the DED (Dubai Economic Department).

With the aid of a local service agent (LSA), the most recent changes made to the Companies Law made it possible for foreign entrepreneurs to establish their visionary enterprise on the Dubai mainland. For an annual fee, the LSA would assist you in the licensing process without possessing any legitimate stock in your business.

Knowing how to start a software company in Dubai Mainland is a smart move. The following features of the market system in Dubai Mainland tempt prospective investors to invest more money:

  • Small minimum capital.
  • No yearly auditing.
  • Quick legal document processing.
  • No recruitment restrictions.
  • Low import duty.
  • Flexible business.

Dubai Silicon Oasis

If your business involves technology and development, setting up base in Dubai Silicon Oasis can be the best option for you. With cutting-edge innovation in fields like nanotechnologies, electronics, and similar industries, it is renowned as the sole technology park in the United Arab Emirates. Dubai Silicon Oasis, also known as DSO, sits in a prime location with easy access to ports and airports that provide a direct link to Asia, Europe, and the rest of the globe.

The benefits of knowing how to start a software company in Dubai Silicon Oasis are:

  • 100% business ownership.
  • Quick business setup.
  • Full capital repatriation.
  • No minimum capital.
  • No taxes.
  • Remote business setup.


The International Free Zone Authority (IFZA), one of the UAE’s fastest-growing economic zones, enjoys a number of benefits as a result of its prime position in Dubai, making it a great site to establish a business.

The benefits of starting an IFZA enterprise are:

  • 100% business ownership.
  • Quick business setup.
  • Full capital repatriation.
  • No minimum capital.
  • No taxes.
  • Remote business setup.

How to get register?

Establishing a software company in Dubai is not too difficult because the emirate makes conducting business easy. Nevertheless, it is crucial to carry out the subsequent actions properly. The processing of your application could be slowed down if you omit any necessary information.

  • Select trade name: You have to choose a business name for your company that does not include any acronyms or contain any potentially offensive or blasphemous words.
  • Choose a location: The majority of software companies in Dubai decide to set up business in a free zone (which gives 0% tax and total business control) or on the mainland (which enables you to sell software all throughout the UAE and obtain government contracts).
  • Select business structure: You must select a legal structure, such as a private company, an LLC, or something different.
  • Complete registration process: You must submit an application for a trade license to the necessary authorities. Furthermore, including the Department of Economic Development of Dubai and the Minister of Communications and Information Technology. You must also pay any applicable costs. A local partner can assist you throughout the entire application procedure and make sure you supply all the necessary information.
  • Articles of Association: You must draft Articles of Association, which explain the purpose and operational model of your company.
  • Register VAT: Launching software companies in Dubai must apply for VAT.
  • Open bank account: Opening a business bank account to collect payments and pay yourself and your workers is another crucial step when beginning a software business in Dubai.

Dubai’s business registration requirements

The following documentation is necessary if you want to launch a software business in Dubai:

  • Application form.
  • No Objection Certificate.
  • Mainland partnership agreement.
  • Valid passport.
  • Valid visa.
  • Articles of Association.

Dubai startup costs for a new business

Due to the complexity of the issues involved, it is impossible to provide one cost of business setup in Dubai. However, it is still possible to make some estimates to establish how much does it cost to start a company in Dubai.

The initial startup cost for a business that is merely starting as a sole proprietorship and opening in a free zone is probably going to be between 15 and 20,000 AED, plus an annual renewal price.

Plan on spending 50,000 AED as the absolute minimum to start your business up if there are multiple owners, you will have numerous employees, and your office space will be larger.

However, keep in mind that there will be far more expenses than just the basic application fees and also company registration fees. These include items such as:

  • Local partner fees.
  • Initial marketing costs.
  • Office space.
  • Hardware costs.
  • Utility costs.
  • Software costs.
  • Employee payroll.

It would be prudent to have a minimum of 100,000 AED saved up to live for the first several months in business. This, depending on your personal financial status and also how long it takes for marketing for your program. Nevertheless, finding investment for software firms in Dubai might be worthwhile. Especially, if you do not have accessibility to this amount of savings.

To operate legally in Dubai, Uae you must have a professional licence

An official document known as a professional license, sometimes known as a business license, enables people to legally own and run their own companies in Dubai. You must obtain a professional license if you operate a service-related firm in Dubai. The Department of Economic Development in the United Arab Emirates is the entity issuing this license.

You must guarantee that you meet and satisfy certain requirements because a professional license pertains to certain industries. People need a professional degree, documentation of their education, and years of experience in a connected sector or industry to become qualifying for this license. For instance, you need to have a current and valid professional license if you wish to start a professional business like a software development firm.

These licenses serve to confirm that your profession complies with industry norms and regulations. It does not matter if you are a sole proprietor or a member of a larger organization. As a result, your clients can use your services by acquiring a professional license.

In Dubai, obtaining a professional license is a simple procedure that just only a few necessary papers. Before starting, it is essential that you make sure you have all the necessary documentation on hand. However, depending on the type of business you intend to run, different types of documentation may be necessary. For instance:

  • Application form.
  • Name reservation certificate.
  • Valid passport.
  • Valid visa.
  • Emirates ID.
  • NOC.
  • Tenancy contract.
Plan now for your software business

The potential for the software company is enormous, both now and in the future. For individuals who want to launch a software business in Dubai, there are great opportunities ahead. Furthermore, if you need assistance developing a business plan for your software company in UAE, get in touch with knowledgeable business advisers at Connect Zone.

Thanks to our professional support, you will know how to start a software company in Dubai. Consequently, our team will help you with the necessary documentation, permissions, and approvals. As well as, getting your trade license. So, simply give us a call at +971 43 316 688 and start a software company in Dubai now! Additionally, you can email your requirements at

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