Dubai is on its way to establishing itself as a global hub for Artificial Intelligence (AI). The Dubai International Financial Hub (DIFC), established in 2004 in Dubai is all set to make this city an AI and Web 3.0 zone by attracting 500 technological companies by 2028.

Apart from this the city also has DTEC, a technology-focused business hub and free zone that is designed to support technology startups and entrepreneurs by providing the best infrastructure, resources, and a collaborative environment. With the formation of RAK DAO (Ras al Khaimah Digital Assets Oasis), the world’s only free zone to support and nurture digital assets companies, Dubai has become the hotspot for entrepreneurs and expats looking to realize their aspiration of founding an AI company.

The city already has a Minister for AI since 2017 and as demand for AI solutions increases, there’s a chance for entrepreneurs to create new products and services. Starting an AI business lets you use the latest technology and be part of a growing industry. So if you are a tech enthusiast and aiming to set up your AI firm in Dubai, this is your best chance!

Getting started on your AI company formation in Dubai 

1. Know about different Free Zones

You can choose to set up an AI firm in Mainland Dubai or the free zone. Mainland companies need to pay corporate taxes though there are no personal taxes and VAT is applicable at 5% on most goods and services. You can go for a free zone company setup wherein the companies are exempted from corporate, personal taxes, and customs duties.

However, Dubai has several free zones, each with its own set of advantages and regulations designed for specific industries. So select the most suitable free zone based on your business requirements and objectives. DMCC, known for its diverse business ecosystem, is an excellent choice for entrepreneurs seeking access to global markets and networking opportunities.

RAK DAO is dedicated to digital and virtual asset companies focussing on developing innovative solutions in new sectors. DIFC is ideal for AI companies focusing on financial services and regulatory technology and DTEC, located within Dubai Silicon Oasis, provides state-of-the-art infrastructure and support services specifically designed for technology startups. So make sure to do some research before you choose the free zone for your business activity.

2. Company registration 

After choosing a free zone that matches your business goals, you will need to start the company registration process. Select the suitable legal structure for your company such as LLC, Branch of the foreign office, Special Purpose Company, etc. To register your company, submit documents such as passport photos, business plans, and proof of address to the relevant authorities in the respective free zone. There could be many more documents depending on your free zone and business activity. You can find the list of documents needed by visiting the Free Zone website. Based on free zone rules, you can get your company registered with the Department of Economic Development.

3. Apply for Licenses

AI companies may need specific permits and licenses to operate legally in Dubai. For example, companies involved in data processing or AI research may need to seek licenses from regulators such as the Telecommunications Regulatory Authority (TRA) or the Dubai Data Establishment (DDE).

Alternatively, you can also contact a business consultancy firm like Corpin Consultants who can guide you through the entire AI company formation process so that you don’t have to deal with delays and ensure that your documentation is up-to-date and that you comply with the law and regulations.

4. Obtain an Office Space

Depending on your business model and operational needs, you will need to get an office space. Dubai offers several flexible office solutions such as co-working spaces, serviced offices and dedicated workspaces to suit your needs. It is important to explore different office options and consider factors such as the size, amenities and budget before finalizing the office space.

5. Funding and Support 

Once you have formed the AI Company, a few months or years down the line, you may find the need for funding and support for business growth. In such cases, you can get in touch with various incubators, accelerators, and venture capital firms in Dubai that support startups, and provide funding opportunities, mentoring programs, and access to industry experts. This will help expats and even local entrepreneurs to understand challenges, empower them to tackle them beforehand and take advantage of new opportunities.

Conclusion

Setting up an ArtifificiaI Intelligence company is a great way to tap into the dynamic and rapidly growing market technological space in Dubai. The city has a robust infrastructure, a favorable regulatory environment, and access to talent and resources. By choosing the right free zone, and company structure and understanding the regulatory requirements, one can establish a strong presence in Dubai.

However, AI company formation in Dubai can become overwhelming as you will have to fulfill all the obligations as mandated by the law. Corpin Consultants in this context with over 10 years of experience in the business setup field in Dubai is one of the trusted and standout advisory firms that can assist you and help you with all the formalities of the company setup process in Dubai. For more details, request a free consultation today.