Dubai’s Strategic Location and Business Environment
Its geographic advantage makes it a transit hub to multiple markets and lies at the cross roads of East and West. It is located near Europe, Asia, Africans which assist in marketing to a wide market and the globe in general. Also the business environment of the city, infrastructure and legal support are perfect for IT Companies to establish their businesses.
Technology Start Up Financial Support from Governments
Many governmental programs exist in Dubai to support tech startups, as the city’s government highly appreciates the development of tech industries. The institutions like Dubai Future Accelerators, Dubai Smart City Accelerator, Dubai Internet City offers enabling supports, access to the experts and mentoring services, funding to the IT initiatives’ people and innovations.
Global Connection and Human Resources
Due to the liberal international ambiance, qualified human resource in information technology is easily sourced globally. Furthermore, the communication network is well developed, infrastructure is also relatively new, and the city has existing trading ties that give IT firms an opportunity to penetrate into international markets.
How to Set up an IT Company in Dubai
Understanding Your Business Activity
Identify the particular IT service or product that you will be delivering to the target audiences; do this to clearly outline or describe the business activity of your company so as to pave way for registration.
Selecting the right jurisdiction of the country (Mainland, Free Zone or Offshore)
Take into consideration, for example, features and conditions of the mainland legal entity, free zones or offshore zones in Dubai. One has to follow the requirements of each state and country separately, so better do some digging and find the most suitable choice.
Register Your Business Name
Choose the good and suitable name for the IT company and get it incorporated officially if the law of your country requires it. Avoid conflict with the guidelines in the process of naming as given by Department of Economic Development (DED) or free zone authority if engaged.
Obtain Initial Approvals
Some of the licenses may require pre-approval from a government authority such as the DED or any other free zone authority that the business selects. This may involve the processing of documents and obtaining clearances maybe special to your business line activity.
Create and Submit Required Papers
Be ready with ACES memorandum and articles of association, shareholders agreements among other legal papers. These documents must be produced on the submission of these application forms to the concerned authorities.
Get Your Business License
Once you complete the documentation and be compliant with all the set conditions, apply for the business license from the DED or any free zone you select for your business. This license will make your IT company legal to operate within the emirate of Dubai.
The expenses that are incurred to form an IT company.
License Fees
One of the most important costs is the cost of procurement of a business license which comprises the initial registration costs, annual licensing costs, and costs based on the location jurisdiction.
Office Space Costs
Take into account costs for the office space regardless of whether you will rent or buy a commercial property. This cost slightly differs with the region and the size of the office space for facilities.
Legalities
Why have a Local Sponsor or Service Agent
Learn about the legal provision that requires an IT company to have a local sponsor or a service agent in that region selected. This person or organisation will help with paperwork and will guarantee that all the proper licenses have been obtained in this country.
VAT and Taxation Policies
Understand what Value Added Tax (VAT) and other taxes will apply to your IT company as it conducts its business. Explore on taxation legislations that apply to Dubai particularly those that affect the Information Technology industry.
Issue: Hunting for strategies for setting- up your business in One of The Dubai free zone?
Tax Privileges and Complete Control
The free zones of Dubai here entails; taxation matters and the fact that full ownership is allowed for the foreign investors hence make Dubai free zones to provide an enviable business climate with less costs imposed on the financial aspect plus more control over business activities.
Simplified Licensing Process
Licensing is simplified in free zones of Dubai, where the registration of business is very easy. This is swift to set up and leads to swifter business operation which is crucial in today’s world.
Hiring and Building a Team
Employer’s Guide on How to Secure Work Visas for their Employees
You must find out the right steps to ensure that the employees get their working permits and visas. Informing the applicant and/or employee about the fulfilment of the requirements of the appropriate government authorities, including the Ministry of Human Resources and Emiratisation.
Navigating Dubai’s Labor Laws
Adhere to the provisions of the labor law of Dubai that touches the employment contracts, working hours, leave and some rights of the employees. Malicious workplace practices and or legal repercussions: It’s important for one to acquaint him or herself with the rules in order to conduct him or herself properly in a harmony as per the law.
Attracting Top Tech Talent
Enhance Dubai’s strength with regard to human resource and workforce diversity by introducing good work culture, reasonable wages and remuneration, and advancement.
Grants Management as a Strategic Tool in IT Companies in Dubai
Guarantees By Local and State Authorities
Find out the grants and subsidies for IT companies in Dubai. Some of these can offer funds for research, development, innovation or entrepreneurship activities.
Venture Capital Funds
Think about sources of funds that exist in the form of venture capital firms in the UAE. This particular group aims at funding young and small companies that show high growth rate.
Networking and Collaborations in the IT Industry
Membership in Some Chamber of Business and Commercial Associations
Join other learned business organizations and association of IT business in Dubai. These groups afford entrees a chance of networking, access to information and offer a platform for emotional support.
Compiling Leases agreements and Submission of Rent Receipts
Go to IT events and conferences to be informed, network and introduce your firm’s products or services to the market. It also a good chance to cooperate with other business because of such events.
Conclusion
There are a lot of factors, which should be taken into consideration when a person decides to open an IT company in Dubai: doing appropriate investigation, planning, and compliance with legislation. Though the environment is challenging and experiencing fast growth, the advantages of operating within such a location make it rewarding. Besides, use the existing opportunities and avail the resources to set your IT business in Dubai supportably. Therefore when enterprising to establish an IT company in Dubai and be a member of the booming tech sector, consider these factors. Happy setting up! Read more articles….
