How to Register an IT Company in the UAE

How to Register an IT Company in the UAE

Companies are constantly looking for reliable and predictable jurisdictions to conduct business. Difficulties with taxes in Europe, increased control over international payments, and unstable economic conditions in traditional offshore jurisdictions all motivate companies to seek alternative solutions.

In this context, the UAE has become one of the key hubs for IT companies, offering specialized free economic zones, government support programs in the technology sector, low taxes, and access to international markets. The business setup process is as follows:

1. Choosing a Jurisdiction
   

• Mainland – suitable for working with clients within the UAE, requires a physical office.
  

• Free Zone – the optimal option for international business, provides 100% foreign ownership and tax benefits.
  

2. Obtaining a License
   

• IT Consultancy License – for consulting IT services.
  

• Software Development License – for software development, SaaS, and mobile applications.
  

• E-Commerce License – if planning to sell digital products and subscriptions.
  

3. Company Registration
   

• Reserving a company name, submitting documents, and paying registration fees (from 10,000 AED).
  

4. Opening a Corporate Bank Account
   

• Choosing a bank (Emirates NBD, Mashreq, ADCB), preparing documents, and completing compliance checks (takes from 2 weeks).
  

5. Obtaining a Resident Visa
   

• Dubai Golden Visa (10 years) – for entrepreneurs and IT specialists.
  

• Investor Visa (3 years) – for business owners.
  

• Work Visa (2–3 years) – for company employees.
  

6. Compliance with Regulatory Requirements
   

• Maintaining accounting records, submitting financial statements, renewing the license, and meeting banking requirements.

This article outlines a step-by-step process for opening an IT company in the UAE, including nuances and regulatory specifics.

Choosing a Jurisdiction

The choice of jurisdiction determines the taxes, business requirements, and client engagement options for the company.

Mainland

This registration is through the Department of Economic Development (DED), allowing unrestricted business operations across the UAE. It is suitable if the company plans to work with local clients, enter contracts with local companies, or participate in tenders. A physical office is mandatory.

Free Zone

Registration in a free economic zone focuses on international business. Companies operating through a Free Zone are exempt from corporate tax (if they do not conduct business within the UAE), can be fully foreign-owned, and undergo a simplified registration process. To operate within the country, collaboration with a mainland distributor is required.

Popular Free Zones for IT Companies

• Dubai Internet City (DIC) – UAE’s largest IT hub, home to Google, Microsoft, IBM; suitable for large IT companies, SaaS businesses, and software developers.
  

• Dubai Silicon Oasis (DSO) – focused on startups, supports software developers, fintech companies, and high-tech businesses.
  

• twofour54 (Abu Dhabi) – suitable for digital media, game development companies, and digital platforms.
  

• RAKEZ (Ras Al Khaimah) – budget-friendly Free Zone for small IT companies, outsourcing services, and freelancers.
  

Choosing a License for an IT Company in the UAE

A license defines the company’s allowed activities and any applicable restrictions.

IT Consultancy License

• Suitable for companies providing IT consulting and strategic services.
  

• Enables development of IT solutions for businesses, IT infrastructure audits, and digital strategy implementation.
  

• Targeted at consulting, IT project management, and IT outsourcing agencies.
  

• Available in Dubai Internet City, Meydan Free Zone, RAKEZ.

Software Development License

• For companies developing software, SaaS products, mobile apps, and web platforms.
  

• Allows development and sale of software, mobile applications, and cloud solutions.
  

• Ideal for startups, SaaS platforms, and software development companies.
  

• Available in Dubai Silicon Oasis, IFZA, RAKEZ, Dubai Internet City.

E-Commerce License

• Grants the right to sell digital products, subscriptions, licenses, game keys, and SaaS solutions online.
  

• Suitable for gaming companies, digital products, and online platforms.
  

• Available in DMCC, RAKEZ, Meydan Free Zone.

Tech Solutions & IT Services License

• For companies providing IT services, cloud technologies, cybersecurity, hosting, and technical support.
  

• Suitable for IT infrastructure, cybersecurity, and cloud solutions providers.
  

• Ideal for cloud platforms, data centers, and IT service providers.
  

• Available in Dubai Silicon Oasis, Dubai Internet City, IFZA.

Registering an IT Company in the UAE

The registration process takes 3–10 business days depending on the chosen Free Zone or Mainland.

1. Choosing and Reserving a Company Name
   

• Must comply with regulator requirements:
  

• No prohibited words or references to political or religious organizations.
  

• Be unique and not duplicate existing companies in the UAE.
  

• Match the chosen business activity.
  

• Reserved through DED (Mainland) or Free Zone authority.
  

2. Document Preparation and Submission
   

• Required:
  

• Copies of passports of all founders and directors.
  

• Completed registration forms.
  

• Business activity description.
  

• Proof of legal address (e.g., office lease agreement).
  

• Additional documents may be needed for corporate founders, such as notarized articles of association and parent company registration certificates.
  

3. Payment of Registration Fees
   

• Costs vary by Free Zone or Mainland and include:
  

• Registration fee (from 10,000 AED depending on the zone).
  

• License fee (annual).
  

• Office rent.
  

4. Receiving Registration Documents
   

• Certificate of Incorporation.
  

• Business license.
  

• Memorandum and Articles of Association (if required).
  

• Mainland companies also register in the trade registry and obtain a company seal.

Opening a Corporate Bank Account

Requirements for foreign founders, including Russians, are stricter. Account opening can take 2 weeks to 2 months.

Required Documents

• Certificate of company registration.
  

• Business license.
  

• Memorandum and Articles of Association.
  

• Lease agreement (optional).
  

• Copies of passports of founders and directors.
  

• Business plan or activity description (sometimes requested).

Additional Documents May Include:

• Bank statements from other countries.
  

• Recommendation letters from partners or financial institutions.

Popular UAE Banks for IT Companies

• Emirates NBD – large bank with strict financial transparency requirements.
  

• Mashreq Bank – suitable for digital businesses, offers convenient online account management.
  

• RAKBANK – more lenient for startups, high minimum deposit.
  

• ADCB (Abu Dhabi Commercial Bank) – stable services for IT companies, wide range of corporate solutions.
  

• WIO Bank – new digital bank, minimizes paperwork, focused on tech businesses.

Obtaining a Resident Visa

After company registration and bank account opening, founders and employees can obtain UAE resident visas, allowing residence, work, and business activities.

• Dubai Golden Visa (10 years) – full access to the UAE market, suitable for IT entrepreneurs. Processed via Dubai Culture or specialized consultancies.
  

• Investor Visa (3 years) – tied to company ownership, renewable if the business remains active. Available through Free Zone or DED (Mainland).
  

• Work Visa (2–3 years) – for employees like developers, marketers, designers, and managers. Processed through Free Zone authorities or Mainland visa services.
  

Regulatory Requirements in the UAE

Corporate Tax and VAT

• Corporate tax: 9% if annual profit exceeds 375,000 AED.
  

• Free Zones: 9% or 0% depending on Cabinet resolution and economic substance compliance.
  

• VAT: 5% for companies operating with UAE clients if turnover exceeds 375,000 AED.
  

• Optimization is possible for IT companies selling SaaS or digital services.
  

Accounting and Audits

• All UAE companies must maintain financial records and comply with accounting standards.
  

• Mainland and major Free Zones (DIFC, DMCC, ADGM) require annual audits and reporting per international standards.
  

• Other Free Zones may not require audits but still require bookkeeping for banks and tax authorities.
  

• Companies subject to 9% corporate tax must file tax returns and keep records for at least 5 years.
  

• IT, consulting, or financial companies must comply with ESR (Economic Substance Regulations).
  

• Non-compliance can lead to fines, account freezes, or license renewal denial.
  

License Renewal

• Licenses are valid for 1 year and must be renewed annually:
  

• Pay government fees.
  

• Confirm office lease.
  

• Update company information.
  

• Failure to renew suspends operations, freezes the corporate account, and incurs daily fines.
  

Transparency Measures

• Companies must report ultimate beneficial owners (UBO).
  

• Banks require detailed business structure and source of funds information.

Summary