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Starting an IT Consultancy Business in UAE – All Things to Know

Dubai has already gained precedence as an IT hub of the Middle East. IT business is booming here with investors, entrepreneurs and start-ups preferring Dubai as their base camp. 

The new company formation is on a growth spree in Dubai. Furthermore, there is always a requirement for new technology and innovation to drive the market ahead. Hence, the demand for IT Consulting business is always on.

Dubai is home to various Freezones that cater to the needs of IT Companies established in the region. Additionally, there are only a few rules and regulations for IT companies in Dubai. Hence, it is easy for startups to set up their business and execute IT operations in the region.

Registering an IT Company in Dubai

Choosing the right Freezone jurisdiction in Dubai is an important aspect of setting up a company in the region. In fact, there are few IT-related Free Zones that are ideal for IT companies to thrive. The Dubai Internet City, Dubai Knowledge Village, and Dubai Outsource Zone are a few of them.

Additionally, the Sharjah Airport International Freezone (SAIF), International Freezone Authority (IFZA), Ajman Free Zone, etc., complete the list of Free Zones. They offer IT Consulting Licenses at a much more cost-effective package.

Hence, if you are an entrepreneur looking for a heads up to enter the UAE these Freezones are the perfect place to start with.

Furthermore, the company registration process in all the Freezones of UAE is very streamlined, transparent, and quick. Hence, as an Investor, you can get a host of benefits offered by these Freezones as you set up the company.

One of the major highlights of Freezones is the availability of a virtual office, Flexi-desk. It is highly beneficial for the entrepreneur’s or IT developers during their product development stage, and when there is a requirement to work remotely on products, or during the test phase.

 Thereby, It will also help in reducing the operational expenses of your business to a greater extent.

Business License and Selecting the Business Activity

Once you have established your services and are ready to roll out a mass service delivery solution, you can opt to move into a major Freezone of Dubai.

Again, for further business expansion into the local UAE market, the mainland of Dubai is the right choice. The expansion enables you to tap into the wider audience base of the UAE and the Middle East.

There are a lot of regulations in the UAE, in terms of cyber laws, business setup licenses, doing business in the mainland, etc. Also the customs duty and VAT filing. You must be well aware of all the nuances in the legal system to avoid any penalty or fine.

Selecting your business license is a very critical step. In the Freezones you have a limitation in terms of choosing your business activity, to add more activities to the list there are additional approval and fees to be paid to the Freezone authorities.

Business License for companies in the IT Sector in Dubai

Generally, two types of licenses are issued by the Freezones for business IT Setup in Dubai

  • Professional License
  • Commercial License

It is to be noted that the business activity, for example, IT hardware solutions, IT Consulting, Software product development, IT Sales & Distribution, etc., are all separate activities and would require approvals to add them to the IT Consulting Professional license.

Depending on the Freezones regulations, not all these activities can be listed under a single professional licensing and in such cases, those activities have to be removed and the company cannot operate those activities unless opting for a new trade license and new company for the same.

To know more about Freezone offerings and cheapest Freezones of the UAE to set up your IT Consulting business, read: 

What are the benefits of Setting Up an IT Consulting in the UAE?

1. Several Licensing Options

Various Freezones in the UAE offer cost-effective licensing solutions. A host of benefits like 100 % foreign ownership, 0% tax, 100% profit repatriation, etc., makes it an ideal location for IT consulting business.

2. Fast and Easy Business Setup

Open your IT consulting business in less than 3 Working days from the popular Freezone of UAE. Get yourself a virtual office or Flexi-desk to start with or customized office space as per your requirement. All at a cost-effective package with minimum documentation, registration fees, and business setup process.

3. Freelancer Permit

If you work as an entrepreneur’s and are still in a developmental phase of your IT software or IT consulting, apply for a Freelance Permit from the Department of Economic Development (DED) or any Freezones of UAE. Start simple and grow your business through networking and attending meet-ups.

4. Setup an LLC Company

If you want to tap into the local UAE market, rest of the GCC region, set up an LLC Company with shareholders & a UAE Sponsor and start your IT business from the mainland and grow business.

5. Residence Visa and Employee Visa

Obtain multiple visas for your shareholders, family, and staff using the business license and expand your business establishment. Set up small office space in any of the Freezones or opt for a virtual office, or form a mainland Limited Liability Company.

6. Corporate Bank Account

IT Services license will make you eligible for opening a corporate bank account in Dubai with any of the major banks of UAE or international ones operating here. Get your multi-currency bank account and secure your returns and gain global financial mobility.

7. Access to Global Markets and Companies

Being in Dubai will give your business access to the global markets of Europe and Asia within a flight time of fewer than 4 hours. Hence your business opportunities here are endless, Also Dubai is home to a diverse population and business establishments that are your potential audience.

8. Networking Capabilities and Easy Business Growth

The business scenario in Dubai offers you easy business growth. With government support, start-up incubators, networking facilities, infrastructure, business supports services, and tax benefits, UAE is a business-friendly location.

For all your queries on setting up an IT Consulting business in Dubai, feel free to reach out to us right away!

Contact: Aurion Business Consultants

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