Dubai’s tech ecosystem is booming! Currently projected at around AED 139.5 billion, it is expected to grow to over AED 513.8 billion by 2031 according to the Dubai Chamber of Commerce. It therefore comes as no surprise that entrepreneurs from across the globe are heading to the UAE, eager to start an IT company in Dubai.
While the industry holds great promise, the road to success is not always without challenges in the form of licensing and market entry constraints. At the same time, the IT sector in Dubai also offers many benefits. Tax-free zones and the possibility of 100% foreign ownership makes it one of the most sought-after destinations among tech-focused entrepreneurs.
In this guide we will walk you through the ins and outs of starting your IT business in Dubai. If you would like help from the experts, Set Hub can support you every step of the way.
Why Dubai stands out as a prime hub for IT ventures
There are many reasons why Dubai stands out as a prime hub for IT ventures in 2025. Let’s examine a few of them.
Tax benefits:
In most Dubai free zones, you will pay 0% corporate and personal tax while also being allowed to repatriate 100% of your profits. This provides entrepreneurs with a solid foundation for financial freedom and long-term success.
Streamlined regulations for IT sector:
When operating within the IT industry in Dubai, you will be faced with minimal regulatory hurdles. The majority of tech activities do not need approval from external authorities. This allows businesses to be established rapidly without any unnecessary delays.
Free zones are tech-friendly:
Dubai is home to several tech-focused free zones like Dubai Silicon Oasis (DSO), DMCC Tech Hub, and Dubai Internet City (DIC). These zones were designed specifically for the IT industry and offer immense benefits like full foreign ownership, 0% custom duties, hassle-free visa processing, and easy access to an interactive tech community.
Simple setup:
With sound guidance, starting an IT business in Dubai could be done in a couple of days. The entire process is very straightforward and there are a range of customized packages that tech startups can choose from.
International access:
Starting an IT business in Dubai provides you with immediate access to the regional headquarters of a number of industry leaders including Microsoft, Google, SAP, Cisco, and Oracle. The city also hosts many premier events such as AI Everything, STEP Conference, and GITEX Global. This makes Dubai the perfect place to network, form partnerships, and attract clients from all over the world.
Selecting the ideal legal structure for your UAE IT operation
When starting an IT company in the UAE, it is important to select the best legal structure as it will impact everything from ownership and tax responsibilities to operational freedom and market access.
Onshore (mainland) setup: Full market access
Mainland companies are licensed by the Department of Economic Development (DED). Benefits include the ability to operate freely in the UAE and direct access to international markets. Setting up a mainland business does, however, require leasing physical office space and 9% corporate tax will be levied on all profits exceeding AED 375,000. Mainland is ideal for IT businesses that want to secure government contracts and those planning to compile a large, local team.
Free zone establishment: Innovation-friendly perks
Dubai free zones offer very attractive benefits to tech entrepreneurs. In addition to tax benefits and full foreign ownership, business owners can expect a straightforward setup process and versatile office solutions. Free zones such as DIC, DSO, and the DMCC Tech Hub are perfect for tech companies that focus on exports, tech startups, and entities that are targeting international and free zone clients.
Offshore entity: Asset protection focus
UAE offshore companies are commonly established in areas like JAFZA Offshore and RAK ICC and are tailored towards international business activities. Offshore entities are perfect for the protection of assets and intellectual property and makes it possible for tech companies to set up and manage international teams and bill global clients without operating within the UAE. Although you can open a corporate bank account in the UAE, no physical office space is required.
Step-by-step process to register your IT firm in Dubai
There are certain steps you need to follow when registering an IT firm in Dubai. Let’s take a closer look at what you need to do to get your IT firm up and running as soon as possible.
Step 1: Define your core activities and structure
Step 1 will have you take a look at the DED activity list and choose the activity from it that matches the nature of your business the best. Make sure you choose the correct activity as it will directly impact your available legal structure options. Once you have chosen your activity, you can proceed with deciding on a legal structure. Popular options include sole establishments, LLCs, branch offices, and free zone entities.
Step 2: Pick the right zone and entity type
When choosing where to set up your IT company in Dubai, you need to keep your ownership requirements, target market, and the setup and operational costs in mind. Mainland, free zone, and offshore each have their own benefits and disadvantages and it is important to choose the one that suits your business the best.
Step 3: Secure initial approvals and trade name
You are now ready to apply for a trade name that complies with all the regulations of the UAE. Apart from being unique and relevant to your business, make sure that the proposed name does not contain any words or phrases that can be seen as offensive. Submit your trade name application through the relevant e-services portal for your jurisdiction. Also submit the necessary documentation for initial approval.
Step 4: Draft MOA and obtain licenses
The next step revolves around preparing the Memorandum of Association (MOA). This document will clearly outline shareholding, ownership, and business activities. Be intentional about including any IT-specific endorsements that authorities may require to help ensure that your proposed operations will be fully covered by your license.
Step 5: Handle visa and labor approvals
You can now focus your attention on taking care of visa requirements for investors, team members, and family members according to your office space and limitations imposed by your jurisdiction. Remember that setup directly impacts visa quotas. Mainland businesses can often sponsor more visas than free zone companies can.
Step 6: Set up banking and office space
Your offer space requirements will be determined by your business activity and may vary by jurisdiction. While mainland businesses have to lease a physical office and register it with an Ejari contract, free zone companies have more flexible options to choose from including dedicated office space and shared desks. Once you are in possession of your license and have compiled all the necessary documents, you must open a corporate bank account with a trusted service provider such as Mashreq, Emirates NBD, or HSBC. Before settling on a bank, compare the fees, international transaction support, banking features, and general service levels of each option.
Step 7: Finalize compliance and launch
While you may be very eager to jump in and officially launch your IT business, there is one more thing you need to do: make sure you are compliant. Mainland and free zone authorities all have certain regulations you need to adhere to if you want to legally operate a business in Dubai. Although an external audit may not be conducted right away, it is in your best interest to always be prepared by ensuring all your records are in place. Setting up internal controls will help your business run smoothly and ensure you are ready for any future audits.
Documents required for IT business formation in Dubai
Organizing and submitting a series of vital documents to the required authorities is an important step in starting an IT business in Dubai.
Here is a list of the most common documents you may need to submit:
- Passport copies of shareholders/partners
- Passport-sized photographs (taken with a white background)
- UAE visa or entry stamp page
- Trade name
- Breakdown of your proposed business activities
- No Objection Certificate (when relevant)
- Business address or contract of tenancy (Ejari if establishing your business on the mainland).
- Completed applications as required by the licensing authority
- Memorandum of Association (when required)
It’s advisable to always have both physical and digital copies of important documents for safekeeping and to double-check that all details are correct before submitting them.
What is the cost of setting up an IT company in Dubai
There isn’t a predetermined, fixed cost for setting up an IT company in Dubai. It generally costs anywhere from AED 12,000 to AED 60,000, depending on several things like the location of your business, the size of your office space, and how many people you are planning on hiring.
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The following all contribute to the overall cost:
- Business license fees
- Fees associated with company registration and initial approval
- Office space/flexi desk rental fees
- Medical examination and Emirates ID application
- Cost of setting up a corporate bank account
- Visa costs
- External approvals (if required)
- Accounting setups and audits (if the chosen jurisdiction requires it)
Setting up a business in a free zone is generally a lot cheaper than a mainland business but it is important to remember that a free zone company does not give you full access to the UAE and international markets.
How to scale your IT business in Dubai
Once your revenue has stabilized, demand has been established, and you have the operational capacity to support growth, you can think of scaling your IT business. Focus on smart strategies that will not put too much strain on your team or your finances:
You can scale successfully by:
Expanding your service offerings
Cater to existing clients’ needs by offering a bigger range of services. Depending on your current scope of activities, new services can include data recovery, software/hardware troubleshooting, and back office support packages.
Upskill your team
Constantly upskilling your team is a very good investment in the future of your IT company. You will be able to offer higher-value services to your clients if your team is suitably qualified and able to perform specialized tasks.
Put your focus on client retention
Retaining an existing client and increasing their spend is often a lot easier than attracting a new client. You can boost your client retention rates by offering ongoing support and subscription-based services.
Frequently asked questions about IT business setup in Dubai
Is a local partner mandatory for IT firms?
Whether you will need a local partner when setting up an IT business in Dubai will depend on the jurisdiction. A 51% Emirati shareholder is required for most mainland businesses. In free zones, however, foreigners can own 100% of their business – no local partner is required. If you are establishing an offshore partner, you also do not require a local partner.
What’s the timeline for free zone approval?
Free zone company setups are known to be fast and uncomplicated. It generally takes between 1 and 2 days to reserve your trade name and get the initial approvals in place. Depending on which free zone you are setting up in, submitting all the required documents and getting your business license, can take up to 7 days. Once you are in possession of your license, you can start setting up office and conduct business legally in Dubai.
How much capital is needed to start an IT company in Dubai?
How much capital you need to start an IT company in Dubai depends on many things like the license type, jurisdiction, and proposed business activities. It is typically cheaper to set up a business in a free zone than on the mainland. General set up costs range from AED 12,000 to AED 60,000. An experienced setup partner will be able to provide you with detailed estimates of the total costs.
Can non-residents own 100% of their IT business?
Yes, even if you are a non-resident you can still own 100% of your IT company if you set it up in one of Dubai’s free zones. If you set up on the mainland, however, you will require a local partner.
About Set Hub
Set Hub has been helping their clients write their own business success stories for more than a decade. Our multilingual team of over 80 passionate members are committed to providing each of our clients with reliable, personalized services that suit their unique business needs. Although starting an IT company in Dubai is exciting, it is not always without challenges and we are ready to help you navigate the exciting journey ahead. By partnering with Set Hub for all your business setup in Dubai needs, you can rest assured that you will receive all the guidance and support you need to set your business up for long-term success.