Opening an IT company in Dubai and the UAE

Over the past decades, Dubai has become an international business center. The economy and other spheres of activity are developing dynamically here. All this has become possible thanks to trade, transport, tourism and manufacturing. Now it is profitable to open IT companies in Dubai. Many factors contribute to this, but the most important of them are security, confidentiality and 0% taxes (when doing business outside the Emirates).

Why is it profitable to open an IT company in the UAE?

Every business needs Internet technologies. They make it possible to stay afloat among competitors. The Emirates is recognized as the most technologically advanced country in the Middle East, and Dubai is the most developed city. Therefore, there are many investment opportunities on the territory that allow you to create an IT business.

For those who want to become investors and invest in IT as a resident, there are laws and regulations that must be observed. The government continues to develop innovative plans to make Dubai the most developed and intelligent city in the world.

Advantages of opening an IT company in the UAE:

1. No taxes.
2. Business security and convenience.
3. There is no reporting.
4. Information about directors and shareholders is confidential.
5. They do not control the currency and do not prohibit the return of money that is withdrawn abroad.
6. Full foreign ownership is allowed.
7. The IT sphere is considered the leader in flexible settings and global coverage of clients\partners.
8. The ability to increase business connections and expand commerce due to a favorable geographical location.

The process of opening an IT company in the UAE

To open a company:

1. Select the type and form of the company. There are only 3 of them: in the FEZ, local within the country, offshore.
2. Select the type of activity. The choice of the FEZ, the type of license will depend on it.
3. Get visas and rent an office. The number of visas affects the value of the company – it depends on the number of founders. It is also worth choosing an office space. There are 2 options available – real and virtual. The type of office directly depends on the type of activity and the type of company. For example, if your business specializes in production work, then you will need a warehouse, for an IT firm – an office. The fact of doing business in the Emirates or abroad is also important.

The registration process takes up to five days, excluding weekends.

Each emirate has its own documentation requirements. If you decide to open a business in Dubai or the UAE as an individual, then prepare the following package of papers:

• passport;
• 3×4 color photo;
• receipt for payment of utilities (in English.yaz);
• business plan (if necessary).

Where is it better to register a company

The region depends on the type of activity and the location of customers. Consider the characteristics of the available options of companies.

Mainland

1. Allows you to work in the UAE with partners of the world market.
2. Business forms – from a Limited Liability Company/ Limited Liability Company, partnership, joint stock company to a branch of a foreign enterprise/ representative office.
3. LLC, which was created in any region of the Emirates, with the exception of the FEZ, provides for the division of ownership shares. In this case, at least 51% should belong to a local individual/legal entity.

Company in FEZ

1. Cooperation is allowed only with foreign partners within the FEZ.
2. LLC is exempt from taxes and is considered the most profitable form of business in the field of information technology.
3. Full-fledged foreign ownership is allowed.

Offshore

1. Allows international partnership without relations with residents of the Emirates.
2. There are tax benefits, SOIDN is applied.
3. They require a certificate that the company is registered.

How to open an account in the UAE bank

Non-residents can use personal and corporate banking. Transactions for residents of Russia from a foreign account should be carried out according to the scheme: 80% of the amount should be converted into rubles, 20% – remain in foreign currency. Such a decision is connected with sanctions and counter-sanctions.

Opening an account takes 30-45 days. An exception is if additional documents are required.

The procedure begins with the submission of an application on behalf of the company. Next, you should prepare the documents and hand over copies of them. The list of papers is as follows:

• passports of company representatives (shareholders, directors), which must have a stamp on visiting the Emirates;
• certificate of shares;
• Emirates ID – for those who have UAE residency;
• certificate of registration;
• shareholder visa – for those who are not residents of the Emirates;
• utility bill as address confirmation;
• bank statements, corporate documentation (if necessary).

Also, when registering an IT company in Dubai, there is a client check. It consists in a personal meeting with the manager or a remote interview.