Registration of IT companies
For IT companies, there are several options for set up a business in the UAE.
1. Registration of a company in the UAE free zone
Freezones are separate geographic and jurisdictional areas located within the Emirates, and each has its own licensing regime and regulatory authority. Free zones provide an advantage to foreign investors and companies opening a business in the UAE by offering 100% foreign ownership of the company. Free zones provide a zero-tax regime, you will only need to pay an annual license renewal. In addition, free zones do not require customs duties on imported goods that are for the use of the company. There are no restrictions on profit and capital repatriation. Costs to register as a company within a free zone vary, depending on the zone.
There are several free zones, primarily in Dubai and Abu Dhabi, which specialize in registering a high-tech business. These free zones provide many benefits for IT companies, such as:
- access to modern offices and coworking spaces;
- the opportunity to get a boost in the development of the company by participating in incubators and accelerators;
- access to various public and private financing programs;
- permanent exhibitions and other various events.
2. Registration of a mainland company in the UAE
Until 2020, if you wanted to register a local company in the UAE, you could only own 49% of the company. According to UAE laws, a UAE citizen had to own at least 51% of a company with foreign participation. But first in 2020, then in June 2021, an addendum to the law on commercial companies was released, which allows 100% foreign national ownership of a local UAE company. Each emirate is required to issue a list of activities for which foreign ownership is permitted. For example, in the lists published by the government of Dubai and Abu Dhabi, there are more than 1,100 activities in various fields. Regarding the IT industry, 100% foreign ownership is allowed in a variety of activities, such as e-commerce, Internet services, online games, etc.
The benefits of registering a local company are almost the same as a free zone company, but you also get direct access to the local market. Since a company registered in a free zone can sell its goods/services to the local market only through a special company - an agent.
We, Make Fortune, decided to make registration and comprehensive support of IT business in the UAE one of our main activities. Modern technologies are developing at a rapid pace and we clearly see the potential for this industry in the UAE. Contact us and we will offer you all options for placing your business in Dubai, Abu Dhabi and other emirates.