IT Business

How to Establish an IT Business in UAE UAE is a promising destination for IT business companies as the incorporation process is quite simple in this country. Also, the UAE Government has been developing multiple plans to make the country one of the smartest economies in the world for all aspects. These initiatives have increased the demand of IT sector and IT professionals to a great extent. Factors to Consider before Establishing an IT Business in UAE A foreign citizen must decide if the company will be set up in the mainland regions or in one of the free zones. Previously, for establishing a company in the mainland, it was mandatory to have a local sponsor who would possess 51% of the shares. Whereas, a free zone company does not require a local sponsor. Recently, the Ministry of Economy has passed a new commercial Company law with regards to the 100% Foreign Ownership. According to which, companies can apply for Business License without the requirement of UAE National as the partner of the company. When it comes to IT companies that are specialized in software development and installation, a foreign national can now enjoy 100% ownership. These companies require a local service agent for license application; however, they will not hold any shares in the company. For companies that specialize in Software products and equipment trading, expats can enjoy 100% ownership without the requirement of a local service agent. Select the legal entity under which the company will operate. The UAE provides the flexibility to register the IT companies as professional firms with full ownership, as well as a sole proprietorship. Start the company formation procedure by reserving a trade name and choosing Articles of Association. The company registration process will be completed with the Trade Register in Dubai or the free zone authority, depending on the area where the business will operate. All companies have to mandatorily register for VAT The license will be issued by the Dubai Companies Register or by the free zone authority of the respective economic zone. Documents Required for Establishing an IT Company in Dubai Listed below are the documents that need to be submitted to the Department of Economic Development (DED): Passport copies of the company owner and partners Proof of payment of initial approval fee No Objection Certificate from the sponsors Partnership agreement to be signed in front of a notary An individual investor should pay AED 10,000, whereas partners who possess a professional license need AED 20,000 as a security deposit. The company needs to have a registered office, for which the owner might need a tenancy contract The company formation experts at Corpin Consultants can help you out with establishing an IT company in the UAE. Contact us for a free consultation today.[/vc_column_text][/vc_column][/vc_row]