Introduction to Company Setup in Dubai
Not only has Dubai risen to the forefront of the world business market, but they’ve also become one of the world’s leading technology hubs. The region has brought in a ton of tech startups throughout the years, many of which have become huge influencers in terms of the country’s economic advancement.
One of the most significant factors in this growth comes from the Department of Economic Development. This governing body has made great strides in fostering development in the technology sector. By creating business incentives and regulations that benefit the tech industry, they’ve drawn the attention of tech investors from all over the planet.
Dubai has also placed an enormous focus on developing business infrastructure throughout the region. In addition to generating well-functioning airport, highway, and port systems for efficiently conducting business, it gives tech businesses the power to take advantage of incredible programs, office spaces, and amenities.
What Are the Benefits of Starting a Tech Company in Dubai?
Tech startups and new business setup in Dubai market is no coincidence. This growth has taken an enormous amount of coordination between government authorities and businesses alike. But the effort has paid off, and now the Dubai marketplace is abundant with diversity and opportunity.
Governmental Incentives and Support
The Department for Economic Development has long developed policies that seek to draw business owners worldwide. And the tech sector is no different! Businesses entering Dubai’s market are excluded from income or corporate taxes and are subject to some of the most relaxed immigration policies in the world.
A Growing Population
The population of the UAE has grown to over 9 million in just under a decade, with nearly 80% of those being expats. Additionally, there has been a growth of female representation in the tech industry, with women now making up around 25% of the current base.
A Shift in Investments
There has been a subtle shift in the overall market. Investors are steadily moving away from traditional investments like real estate and investing heavily in the technology sector. This is a massive boost to the overall economy and only draws in more IT-related business to the area.
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Geographic Location
Dubai is situated along the Arabian Peninsula in the Persian Gulf, making it a prime location for business logistics. Industries operating here have easy access to ports, shipping, and travel. Additionally, Dubai is conveniently located only a few hours flight from almost any location in Africa, Europe, or Asia.
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A Skilled Workforce
Dubai hosts a diverse, skilled talent pool, allowing startups and businesses to hire capable personnel with little difficulty finding qualified applicants.
The Process to Starting a Tech Business in Dubai
As with setting up any business in the Emirates, the procedure is designed to streamline the application process, but it’s not without pitfalls. For a company to successfully enter the market, you’ll need to understand the steps for applying for your trade license.
– Decide What Your Business Activity Will be
In Dubai, businesses are separated into different sectors, with separate application processes for each. By knowing what type of business you intend to conduct, you can determine where you’ll need to apply.
– Choose Your Business Name
Once you know the industry you’re entering, it’s time to pick out your business name. You’ll want to make sure that your business name doesn’t violate regulations. Businesses may not include offensive or blasphemous material, and you cannot secure a name that has already been taken. Business names that violate these rules will be rejected.
– Choose Your Business Location
Choosing where to set up your business is a big step. Dubai offers both the mainland and a large selection of free zones that cater to different industries. For foreign owners setting up shop in mainland Dubai, they will be required to have a local sponsor or partner that owns 51% of the company’s shares. Businesses operating in the free zones are allowed 100% foreign ownership without the need for sponsorship.
– Apply for Your Trade License
When applying for your license, you’ll want to have all the required documents handy. Some of these include:
- Your company’s Memorandum of Association
- Proof of payment for initial approval fee
- A copy of passports for all shareholders and employees
- Resolution of shareholders (if applicable)
- A No Objection Certificate for foreign investors
– Get Initial Approval
Once you’ve submitted your application and paid all relevant fees, you should receive your initial approval letter from the DED.
– Set Up Banking Information
After securing your initial approval, you’ll want to contact your banking institution to establish accounts for your business.
– Receive Full Approval and Collect Documents
The final step will be to collect all your documentation, pay any remaining fees, and collect your business license. You’re now free to conduct business!
– Visa Application
After securing your business license, you are able to apply for a residential visa. Dubai also permits applications for any investors, partners, staff, and family members.
Conclusion
Dubai is known worldwide as one of the most financially viable markets for burgeoning businesses. Progressive and financially appealing policies have created a tremendous economic boom in the business world throughout the Emirates. And the tech industry stands at the forefront of it all.
It’s no secret that the future of business lies in the digital realm, and investors wanting to start tech and IT-based companies in Dubai will find themselves in a prime position to reap the financial rewards. But before you can open the doors for business, you’ll need to do ample research on your product, your market, and the application process.
Applying for a business license in the UAE is designed to be a straightforward process, but it can be tricky for investors not accustomed to local business methods. To this end, many foreign investors choose to ally with an advisor familiar with regional business customs. These consultants can help business owners efficiently navigate the waters of Dubai’s business world.