How to Start up an IT Company in Dubai: A Comprehensive 2024 Guide
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In 2023, Dubai was recognized as the top city in the Middle East for ease of doing business, thanks to its modern infrastructure, world-class facilities, and attractive economic incentives.
With its dynamic free zones, zero percent corporate tax rates, and a highly skilled workforce, Dubai is not just a hub for trade but a gateway to the broader Middle Eastern and African markets.
Whether you’re looking to expand your business, set up a new venture, or simply explore opportunities in one of the most vibrant cities in the world, this guide will provide you with essential information to navigate your move to Dubai.
Jump To What Interests You the Most:
- UAE Facts
- Climate
- Visas and Permits
- Connectivity
- Transport
- Accommodation in Dubai
- Documents and Registration
- Working in Dubai
- Moving Your Business to Dubai
- Moving to Dubai: Your Ultimate Checklist
- Choose IFZA For a Smooth Business Setup Experience in Dubai
UAE Facts
The United Arab Emirates (UAE) is a federation of seven emirates, with Abu Dhabi serving as the capital city. The official currency is the United Arab Emirates Dirham (AED), and the country operates on Gulf Standard Time (GMT +4). Arabic is the official language, reflecting the rich cultural heritage of the UAE. Familiarizing yourself with these basics will help you acclimate to the country’s environment and daily routines.
- Federation: Seven emirates
- Capital: Abu Dhabi
- Currency: UAE Dirham (AED)
- Time Zone: GMT +4
- Language: Arabic & English (can be used as a graphic)
Climate
The UAE’s climate is predominantly sunny and sub-tropical, which can be both delightful and challenging. During the summer months, from June to September, temperatures can exceed 45°C, making it crucial to stay hydrated and avoid the heat during peak hours.
The cooler months, from December to March, offer more pleasant temperatures around 24°C, ideal for outdoor activities. Most buildings are equipped with efficient air conditioning, ensuring comfort both at home and in public spaces.
Visas and Permits
Securing the right visas and permits is a critical step in moving to the UAE. To live and work in the country, you will need a residency visa and an Emirates ID card. There are several ways to obtain a residency visa:
- Obtain a job where your employer will sponsor your visa.
- Set up and register a business in the UAE.
- Receive a family visa from a resident spouse or parent.
Additionally, if you plan to work, you’ll need a work permit specific to your job. Working on a tourist visa is illegal, so ensure all your documentation is in place before starting work.
Many companies assist with the visa process, but having a job secured beforehand can significantly streamline the process.
Connectivity
Staying connected in the UAE is straightforward with a variety of options for mobile and home internet services. For mobile connectivity, you can choose from three main telecom providers:
- Du
- Etisalat
- Virgin Mobile
To register for a mobile plan, you’ll need a valid Emirates ID. For home internet, Etisalat and Du are the primary providers, and you must be at least 21 years old to set up an account. Required documents include:
- Emirates ID (both original and a copy)
- Passport with a stamped residency visa (both original and a copy)
- Registered tenancy contract
Proper connectivity will help you stay in touch with business contacts and manage daily tasks efficiently.
Education in Dubai
Dubai offers a diverse range of educational options to cater to the needs of expat families.
International Schools
International schools are the most popular choice among expatriates in Dubai due to their diverse curricula and language options. These schools often follow British, American, or International Baccalaureate (IB) curricula, providing students with a globally recognized education.
Some of the top-rated international schools in Dubai include:
- Dubai American Academy
- Gems World Academy
- GEMS Wellington Academy
- Nord Anglia International School
- The British College Dubai
Public Schools
Public schools in Dubai primarily teach in Arabic. While they may offer English language programs, they are generally not as popular among expatriate families due to the language barrier.
However, if you’re interested in immersing your child in Arabic culture and education, public schools can be a viable option.
Higher Education
The UAE boasts several reputable universities that offer a wide range of undergraduate and graduate programs. Some of the most popular universities include:
- American University in Dubai
- University of Wollongong in Dubai
- Heriot-Watt University Dubai
- University of Birmingham Dubai
- New York University Abu Dhabi
These universities often offer English-language programs and collaborate with international institutions to provide a high-quality education. By carefully researching and planning, you can find the perfect educational institution for your child in Dubai.
Transport
Navigating cities like Dubai is convenient due to its well-developed transport system. In Dubai, you can use:
- Metro
- Buses
These modes of transportation are accessible with a NOL smart card, available at Metro stations’ ticket offices and vending machines. Ride-sharing apps are also widely used, including:
- Yango
- Careem
If you plan to drive, be aware that traffic regulations are strict, and there is a zero-tolerance policy towards drinking and driving. You can drive with an international license initially but will need a local license if you become a resident.
Driving in Dubai:
Strict Traffic Rules: Be prepared for strict traffic laws and a zero-tolerance policy for drinking and driving.
International License: You can initially drive with an international license, but you’ll need to get a local one if you become a resident.
Dubai’s transport system is well-connected, making it easy to explore the city.
Accommodation in Dubai
Accommodation can be a significant expense in the UAE, so it’s important to plan ahead. Here’s what you need to know:
Renting a Property
- It’s common to pay annual rent upfront, along with a security deposit. Some landlords may accept post-dated cheques.
- To rent a property, you’ll need to present your residency visa, passport, and proof of income.
Buying a Property
- Expatriates are restricted to designated ‘freehold areas’ when purchasing property.
- Choose between properties that are already built or those under construction.
Popular Property Rental Websites
- Property Finder
- Bayut
- Dubizzle
Remember: When searching for accommodation, consider your budget, desired location, and preferred amenities. It’s also advisable to consult with a real estate agent who can guide you through the process and help you find the perfect home in Dubai.
Documents and Registration
To access essential utilities and services in Dubai, you’ll need to complete the following steps:
Register with Utility Companies:
- DEWA (Dubai Electricity and Water Authority): Register for electricity and water services.
- Etisalat or du: Sign up for internet and mobile services.
- Other utilities: Register for gas, sewage, and other services as needed.
Pay a Deposit and Setup Fees:
- Expect to pay a refundable deposit and setup fees for each utility service.
Register Tenancy with Ejari:
- Provide a copy of your DEWA connection receipt.
- Submit copies of your passport and your landlord’s passport.
- Present your Emirates ID.
By completing these steps, you’ll be able to enjoy essential utilities and services in your new home in Dubai.
Working in Dubai
The UAE’s standard workweek runs from Monday to Friday, with typical working hours ranging from 8 to 9 hours per day. Some industries or companies may have slightly different schedules.
Setting Up a Bank Account
To ensure timely salary deposits and manage your finances effectively, it’s recommended to set up a bank account in the UAE as soon as possible after arriving.
Additional Considerations
- Visa Requirements: Ensure your visa allows you to work in the UAE.
- Labor Laws: Familiarize yourself with UAE labor laws, which protect the rights of employees.
- Cultural Considerations: Be mindful of local customs and etiquette in the workplace.
By understanding these key aspects of working in the UAE, you can ensure a smooth transition and a successful professional experience.
Moving Your Business to Dubai
Dubai’s free zones offer a range of benefits for businesses looking to set up operations in the UAE. These zones provide a conducive environment for trade, investment, and innovation.
Key Advantages of Free Zone Companies:
- 100% Foreign Ownership: You can fully own your business without a local partner.
- Tax Benefits: Enjoy a 0% corporate tax rate on qualifying income.
- Simplified Procedures: Benefit from streamlined company formation and operational processes.
- Strategic Location: Dubai’s strategic location provides access to lucrative markets in the Middle East and Africa.
Setting Up a Free Zone Company
To establish a free zone company, you’ll need to provide the following documentation:
- Company setup application
- Passports of shareholders, directors, and General Manager
- Legalized and attested UK company documents (if applicable)
- Detailed business plan
Obtaining Visas
Once your company is established, you can apply for residency visas for yourself, your family members, and your employees.
Opening a Bank Account
After securing your residency visa, you can open a corporate bank account for your free zone company. Required documents typically include:
- Foreign Company documentation
- UAE business documentation
- Shareholder and UBO details
Key Considerations for Free Zone Companies
- While free zones offer a wide range of business activities, there may be restrictions or limitations based on the specific zone.
- To maintain the 0% corporate tax rate, your business must demonstrate economic substance within the free zone.
By understanding the benefits and requirements of free zone companies, you can make an informed decision about relocating your business to Dubai.
Moving to Dubai: Your Ultimate Checklist
Now that we’ve covered all the essential steps, let’s recap this comprehensive checklist to ensure a smooth transition:
Before You Move
- Passport and Visas: Ensure your passport is valid and apply for necessary visas.
- Healthcare: Get a health check and consult a healthcare professional.
- Finances: Create a budget, build savings, and notify your tax office.
- Education: Research and secure school places for your children.
- Documentation: Gather essential documents like rental references and school reports.
- Travel Insurance: Protect yourself with comprehensive travel insurance.
After You Arrive
- Register with Utilities: Set up electricity, water, internet, and other services.
- Register Tenancy: Provide required documents to Ejari.
- Obtain a Residency Visa: Complete the necessary procedures to obtain your residency visa.
- Open a Bank Account: Set up a local bank account for easier financial management.
- Explore Your Surroundings: Familiarize yourself with your new neighborhood and local amenities.
By following this checklist and planning, you’ll be well-prepared for a successful move to Dubai.
Choose IFZA For a Smooth Business Setup Experience in Dubai
IFZA is a well-known name in the region for its expertise in business setup in Dubai. Our international network of Professional Partners can guide you through every step of the IFZA license application, ensuring easy navigation and saving you valuable time. And the best part? You don’t even have to be physically present in the UAE.
Choose from thousands of business activities and combine commercial and professional activities under a single license. With IFZA, you have the freedom to build your business exactly the way you envision it.
Our services don’t end with company formation. The IFZA Free Zone ecosystem provides ongoing support to your business with corporate bank account opening assistance, medical insurance coverage, and more. Our Professional Partners receive comprehensive training and access to the IFZA academy’s micro-learning opportunities that focus on critical business skills such as customer service, sales, communication, and government regulations.
Don’t miss out on this opportunity for success. Contact an IFZA Professional Partner today for expert guidance on your business setup in Dubai.