Over the years, UAE has grown into a major IT hub with new companies rapidly springing up and renowned multinational companies continuously branching out in the area. Competition is intense, but so is the ever-rising demand for digital services, proving that this is the right time, the right field, as well as the right location to invest in. With a tech-savvy population coupled with an all-time high rate of internet penetration, you have yourself a golden opportunity to build a sustainable and highly profitable career. So let’s take a look at some of the key points you need to follow while formulating the plan to set up your software development company in UAE.
Create a Business Plan
Coming up with a business plan is the first and foremost step in setting up your software development company. It carries the vision or purpose of your company and what role it is supposed to play in the software industry. Do thorough research on the industry and specify your niche. A description of the company, key market, competitors, a financial plan, and a list of legal requirements are some of the things included in a business plan.
Just like any other business, the location of your software development company in instrumental in its success. UAE hosts a wide range of free zone areas which can serve as the ideal location for your company as they allow complete ownership over your business with zero tax requirements. Dubai Silicon Oasis, Fujairah Creative City, Sharjah Publishing City, and Dubai CommerCity are among some of the notable free zone locations to look out for. Another great option for your business setup is the mainland area which allows access to various government contracts and grants the opportunity to do business across the UAE.
In order to launch your software development company, a vital step is to set up a trading name that needs to be registered under the government of the UAE. There are certain rules that need to be kept in mind while coming up with a trading name. For example, abbreviations, blasphemous and other offensive words that are intended to target a particular community, race, religion, or ethnicity should not be used.
Before you get started, you will need a license to dive into your business endeavors. The Ministry of Communication and Information Technology is responsible for dispatching licenses to software development companies. The type of license required depends on a multitude of factors, ranging from the nature and goal of your company to your business structure, such as sole proprietorship, LLC, etc. You can contact a local partner to help with the application process to make sure all details are complete.
It is important that you carry employment as well as a residency visa, as it has been made mandatory for all business owners by the government of UAE. Relevant documents, alongside a fitness report, are required in order to get your visa approved.
A major step while setting up your software development company in UAE is to open a corporate account in a legally recognized bank in the UAE. This is to ensure you can receive relevant payments as well as complete important tasks such as paying your employees and company dues, etc.
The exact documents required to depend on numerous factors, such as shareholding status, location of the company, etc. Some documents which are highly important in the application and launching process are mentioned below.
- Passport photocopies.
- Visa photocopies.
- Partnership agreement for companies with multiple partners.
- No objection certificate.
- Passport-size photographs.
All in all, setting up a software development company in UAE opens the doors to great opportunities in the future as, currently, the industry is brimming with potential. Before you get started, you should do your research on some of the already established, well-known software development companies. This will help you spot competition and in giving shape to your own plans.