Dubai is no longer just about skyscrapers and luxury shopping. It has quickly become the tech nerve center of the Middle East.
Are you thinking about launching your own software company in this vibrant business environment? If so, this guide is exactly what you need. From navigating government requirements to understanding the IT company license cost in Dubai, we’ll walk you through it all.
Whether you’re a freelancer ready to scale or a team with a big vision, getting your software company license in Dubai can be your gateway to success.
Table of Contents
- Why Start a Software Company in Dubai?
- Software Company License in Dubai: Overview
- IT Company License Cost in Dubai
- Mainland License Costs
- Freezone License Costs
- Documents Required to Start a Software Company
- Step-by-Step Process to Get a Software Company License
- Step 1: Choose Your Legal Structure
- Step 2: Reserve a Trade Name
- Step 3: Apply for Initial Approval
- Step 4: Submit License Application
- Step 5: Open a Bank Account
- Step 6: Register for VAT (if applicable)
- Types of Software Businesses You Can Launch
- Benefits of Starting a Software Company in Dubai
- Research-Backed Market Insights
- FAQs
- Let Dubai Business Services Help You
Why Start a Software Company in Dubai?
Dubai is now called the Silicon Valley of the Middle East and rightly so.
The UAE government has launched several initiatives like Smart Dubai and Dubai Internet City to fuel its digital economy. The city has:
- Excellent infrastructure
- High-speed internet and cloud computing hubs
- Tax incentives
- Diverse talent pool
Software Company License in Dubai: Overview
To legally operate a software company in Dubai, you need a professional license. This license is typically issued by the Department of Economic Development if you opt for a mainland setup. Free zones like Dubai Internet City or Dubai Silicon Oasis also offer licenses tailored for tech businesses.
The license covers a wide range of software-related activities:
- Software development
- Web and mobile app development
- IT consulting
- SaaS and cloud services
- Cybersecurity solutions
IT Company License Cost in Dubai
Cost varies depending on the business model and location (mainland or free zone).
Mainland License Costs
| Fee Type | Cost in AED |
| Initial Approval | 120 |
| Trade Name Registration | 620 |
| Tasheel Fees | 345 |
| MOA/Notary Fees | 1,200 |
| License Fee (Annual) | 12,500 |
| Immigration Card | 750 |
| Labor Card | 1,000 |
| Investor Visa | 4,200 |
| Stamp | 100 |
| Total Estimated | 21,185 |
Freezone License Costs
| Fee Type | Cost in AED |
| License Fee (Annual) | 5,500 |
| Immigration Card | 2,000 |
| Investor Visa | 5,000 |
| Stamp | 100 |
| Total Estimated | 12,600 |
Keep in mind that these are average costs. Prices may vary based on office space, number of visas, and business activities.
Documents Required to Start a Software Company
- Business plan
- Passport and visa copies of shareholders
- Emirates ID (if applicable)
- Trade name reservation certificate
- Office lease or virtual office agreement (Ejari)
- MOA and AOA (notarized)
- Initial approval from DED or free zone authority
Step-by-Step Process to Get a Software Company License in Dubai
Step 1: Choose Your Legal Structure
Options include:
- Limited Liability Company (LLC)
- Sole Establishment
- Branch Office
Step 2: Reserve a Trade Name
Pick a unique business name. Avoid religious or offensive words. Apply for name reservation with DED or the free zone authority.
Step 3: Apply for Initial Approval
Submit a simple application to the relevant authority. This gives you a go-ahead to proceed with the licensing process.
Step 4: Submit License Application
Submit required documents along with the license application. You’ll need to pay relevant fees at this stage.
Step 5: Open a Bank Account
Once your business is legally formed, open a business bank account with a UAE bank.
Step 6: Register for VAT (if applicable)
If your annual revenue exceeds AED 375,000, VAT registration is mandatory.
Types of Software Businesses You Can Launch
- Custom software development
- ERP and CRM solution providers
- E-commerce platform development
- Mobile and web app development
- Cybersecurity services
- SaaS solutions
- Game development
Benefits of Starting a Software Company in Dubai
- 100% Foreign Ownership: Especially in free zones
- No Corporate Tax: In many zones and for qualifying businesses
- Easy Visa Process: Sponsor your team with ease
- State-of-the-Art Tech Parks: Like Dubai Internet City
- Global Connectivity: Direct access to major markets in Asia, Europe, and Africa
As per the “Digital Economy Strategy” launched by the UAE government, the digital economy’s contribution to the GDP is projected to reach over 20% by 2031.
This makes now the perfect time to invest in a tech venture like a software company.
Let Dubai Business Services Help You
Launching your software company in Dubai is exciting but the paperwork and approvals can be daunting. That’s where we come in. Dubai Business Services is your reliable partner in setting up, licensing and launching your software business the right way.
Get in touch with us today and start your tech journey in Dubai with confidence!
FAQs
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Can I own 100% of a software company in Dubai as a foreigner?
Yes. Free zones and recent reforms in mainland laws allow full foreign ownership.
-
How long does it take to get a software company license in Dubai?
It usually takes 1 to 3 weeks depending on documentation and approvals.
-
Do I need a local sponsor in Dubai?
Not if you choose a free zone. Mainland setups may require one unless 100% ownership is allowed.
-
Is it mandatory to have office space?
Yes. Either a physical office or a virtual office (Ejari) is required.
-
What is the minimum investment required to start a software company?
Costs start from around AED 12,000 in free zones and can go up to AED 21,000+ in mainland setups.
