1. DETERMINE YOUR SERVICE
If you decide to setup an IT company in Dubai, you will need to establish the type of services your company will provide. Will your IT/technology company provide generalised services or specialised services?
SPECIALISED SERVICE IT COMPANY
There are many opportunities to offer clients and companies specialising in IT services. Some areas of specialties may include but not limited to are:
- Networking and cloud computing and programming.
- Big data, data recovery and data management.
- Website development and design.
- Business intelligence.
- Digital and analytic services.
- Cybersecurity and system management.
Pros – If you decide to be specialised in an IT field, you can become well known as the expert and market leader for a certain technology or service. Therefore, you may be able to charge more per the hour, due to the demand for your services and have a thriving business.
Cons – You could miss an opportunity to provide complementary services and revenue streams. Therefore, this may have an effect and slow down the growth and expansion of your business.
GENERAL IT SERVICE COMPANY
On the other hand, setting up a generalised IT service company with several service offerings, you will have a variety of clients.
Pro – Providing generalised services will result in a wider client base. Nearly every business or person requires technical and IT services and support. Since you will be providing generalised services your business will need to remain updated on the latest industry changes and could learn more, seek opportunities and improve your business operations, resources and performance overall.
Cons – Operating as a generalised technology / IT company you are competing with others in the market and often competing on price. Therefore, you may not be able to charge as much as a specialised IT company. Furthermore, it is essential that you keep up to date on the latest technology and trends which can be time consuming, but will keep you in business.
2. BUILDING YOUR DREAM TEAM
Technology is the driving force when establishing an IT company in Dubai. Equally important is having the right staff as they are your most critical business asset. You need to ensure you have the right skilled team in place to do the job that is required. Employees need to have the required expertise and be able to cover all your business offerings to provide a good job servicing your clients.
3. SELECTING YOUR COMPANY NAME
It is recommended to choose a company name that completely describes what your business does. Your company name needs to be simple, straight to the point and easily searchable, which is essential in today’s digital landscape and search websites.
4. FORMING A LEGAL BUSINESS ENTITY
Deciding on the right type of business structure is essential. Selecting the right company structure will place the company in the best position operationally and financially. Not seeking the correct advice on the company structure and getting it wrong can be costly and restricting to the business overall.
At Creation we provide a holistic approach and evaluate the business entirely. We take into consideration all market entry requirements such as:
- Researching the best option(s) for the company to invoice.
- Examining the most effective structure for company finance.
- Providing options for the best available position for managing tax.
- Identifying the right setup for holding company assets and intellectual property.
- Recognising the number of staff required and where they will be located.
- Selecting the most cost effective and suitable office space and warehousing etc.
Once we have completed our detailed approach, we devise a detailed UAE and Dubai company setup structure. The main options are:
MAINLAND/ONSHORE LICENSE
If a company provides IT/technology services and their clients are based in the mainland, the business is required to register as a mainland company. Company registration is completed with Dubai Economic Department. Most IT consulting type services are considered as a professional license and a local National Service Agent (NSA) is required.
7 steps for registering your mainland / onshore license
- Choose the company name for registering the company.
- Identify all the services your business will offer and ask your consultant to check each business activity is available under the one license.
- Select your National Service Agent (NSA), it is advisable to nominate a corporate NSA such as Creation Business Consultants.
- Decide who will be the company’s General Manager (GM).
- Arrange your office facility rental (tenancy contact and Ejari) as soon as possible. This is a mandatory requirement for completing the company registration with the authorities.
- Ensure to register your company with the Chamber of Commerce.
- Complete the company labour and immigration requirements to be able to apply for all investor, employee, spouse, family and dependent visas.
Benefits of a professional IT mainland / onshore license company
- A professional licensed company is 100% owned by the foreign party.
- Mainland/onshore professional license company must have an appointed agent.
- Creation Business Consultants will provide a National Service Agent (NSA) to satisfy this licensing requirement.
- All financial management, control, rights to voting, proxies and profits are retained entirely by your company.
- Company incorporation can be fast.
- No operating restrictions and flexibility to perform business throughout Dubai and the UAE.
- Ability to contract and bid tenders with all UAE governments, mainland clients and Dubai based companies.
- Ability to open a UAE corporate bank account for the free zone company.
- 9% corporate and personal tax applies in the UAE.
- 100% repatriation of capital and profits.
FREE ZONE LICENSE
Whereas, if a company provides IT/technology services and their clients are based outside of the UAE and the company has no desire to expand its client base to the UAE, the company has the option to register as a free zone IT consultancy firm. Company registration is complete with the selected free zone. There are over 50 free zones in the UAE, and some are specific to certain industries. The main IT/technology free zones located in Dubai are Dubai Internet City and Dubai Silicon Oasis. The industry specific IT/technology free zones are considerably more expensive than the general free zones located in the North Emirates.
7 steps for registering your free zone IT license company
- Choose the company name for registering the company.
- Select the preferred free zone you wish for your company to be incorporated.
- Identify all the services your business will offer and ask your consultant to check each business activity is available under the one license.
- Decide who will be the company’s General Manager (GM).
- Decide on your office facility rental as soon as possible. This is a mandatory requirement for completing the company registration with the authorities. If you are requiring a small office this might not be available and office space is subject to availability.
- Complete the company labour and immigration requirements to be able to apply for all investor, employee, spouse, family, and dependent visas.
Benefits of a professional mainland / onshore license
- A free zone licensed company is 100% owned by the foreign party.
- Eligibility for the company to apply for UAE residence visas under the free zone company.
- Subject to the free zone chosen there may be flexible office facilities available.
- All financial management, control, rights to voting, proxies and profits are retained entirely by your company.
- Company incorporation can be fast depending on the selected free zone.
- Can only operate /provide its services within the free zone and offshore.
- Ability to open a UAE corporate bank account for the free zone company.
- 0% corporate and personal tax applies in the UAE.
- 100% repatriation of capital and profits.
The above is a general guide and the requirements will depend on the business activity, company jurisdiction, business structure etc. As one of the UAE’s leading corporate service providers and management consultancies, Creation Business Consultants specialises in assisting multinational corporations, SMEs, and entrepreneurs with market entry solutions to expand and restructure in the UAE, Saudi Arabia, and wider-GCC region. Contact our Corporate Structuring Department and to learn more via email [email protected] or call UAE +971 4 878 6240 KSA +966 56 865 2329.
