The Software Development Business License in UAE and the process to set up a software company.

Software Development Business License in UAE is

The UAE has demonstrated to be an excellent country to develop different types of businesses and industries. Among the most prosperous industries in this country, you can find the IT (Information Technology) industry. And as this industry grows, the demand for the Software Development Business License in UAE is higher. And here we will show the information you need about it.

In this article, you will learn everything you need to know about software development companies. For instance, you can discover how to set up this kind of business in the UAE. Moreover, you should also learn about the license that investors need to operate this kind of company. Let’s observe:

  1. The growth of the IT industry and market in the UAE.
  2. What are the best free zones to set up a software development company?
  3. Information you need to know about the required business license.
  4. How to set up a software company in Dubai?
  5. What are the required documents for the company registration process?
  6. How much can cost to set up a software business in Dubai?
  7. How can Connectfz help you obtain more related information?

1. The growth of the IT industry and market in the UAE.

Technology is a combination of several aspects such as skills, techniques, processes, methods, and more. These aspects are meant to deliver excellent services and goods. And over the years, technology has evolved until transforming our lifestyle to make it better. Due to the success of the technology, the IT industry grows stronger and more prosperous every year.

In the UAE and the MENA region, you can find the most attractive IT markets. Thanks to the initiatives that the government has implemented, the business establishment process of IT companies is simpler. For instance, with the inauguration of Dubai Internet City, this location has become a leading technology business hub. The main goal was to fetch $2.7 billion by 2022 with Dubai Internet City. However, since the city became so famous and prosperous, the IT market fetched more than $17.2 billion in 2016.

This industry keeps growing as technology grows. And with continuous effort over the years, the UAE is now among the most lucrative IT industry platforms. Now with the development of Artificial Intelligence and Robotics, advanced technologies are in demand. As result, the UAE has committed to supporting all investors from everywhere to develop their software companies.

Any investor who is interested in developing a software company efficiently can choose the UAE. In this country, all developers and investors will receive the necessary support services and benefits to boost their businesses. If you are one of them, keep reading this article to discover relevant information about the setup process. Besides, you will learn how to obtain a Software Development Business License in UAE.

Here you can learn more information about Dubai Mainland and how to set up a mainland company.

2. What are the best free zones to set up a software development company?

What are the best free zones to set up a software development company?

Before applying for the Software Development Business License in UAE, you need to select a location for your business. The most recommendable places to establish an IT-related business is in some specific UAE free zones. For example, you can choose the most convenient free zone that we previously mentioned; Dubai Internet City. In case you want to try some other location, here you will discover other favorable free zones.

Remember that all free zones will provide you with benefits, including the following ones:

  • Full exemption from personal and corporate income tax.
  • 100% foreign ownership and repatriation of profits.
  • Full exemption from customs duty.
  • World-class infrastructure and a favorable environment.
  • Simple and quick company setup process.

Each free zone offers many other advantages, but they could vary depending on each location. Now let’s take a look at some available free zones for a software development company.

2.1. Dubai Internet City Free Zone (DIC).

This free zone was established in 1999 to provide an economic and tactical platform for all IT companies. This location is 25 kilometers from Dubai and it’s a strategic place to form a software development company. Besides, it offers many advantages for all investors and entrepreneurs who desire to start building their businesses.

Among the most remarkable benefits that you can obtain here, you can find, for example, the following ones:

  • Countless opportunities for business interaction, networking, and market development.
  • Affordable operating costs.
  • A communications infrastructure based on next-generation technologies.
  • Pre-existing infrastructure, facilities, commercial office setup apt for IT companies.
  • The world’s largest commercial IP telephony network.
  • A dynamic international community for all investors.

Besides, any investor can obtain the Software Development Business License in UAE in this free zone and many other licenses. For instance, you can apply for the e-commerce license, IT service license, Telecommunication and Network license, and more. If you are interested in this location, you can visit the free zone’s website to obtain more information.

Here you can learn about Ajman Free Zone and how to establish your business in this location.

2.2. Dubai Silicon Oasis Free Zone.

It is among the most popular free zones related to the IT industry. That is the main reason why it is a convenient alternative to set up your software development business. Dubai Silicon Oasis has promoted technological innovation since its foundation in 2004. Since then, the IT industry has grown and thrived exponentially in this location.

In this free zone, you can get the following advantages to boost your software development company:

  • You will have access to an advanced IT infrastructure with network security.
  • Any investor can access world-class development and research centers.
  • Networking and community-building events are advantages to boost your business too.
  • There are investment incentives by venture capitalists for all startups and investors like you.
  • You can access a digital park with office buildings, Flexi-desk office spaces, and executive offices.
  • Also, you can obtain special licenses and permits. For instance, if you need the Business Operation Permit, you can apply for it. Another one could be the Entrepreneurial Business License, which is a beneficial license depending on your business.

3. Information you need to know about the required business license.

The Software Development Business License in UAE is essential to establish software development companies. It helps to secure intellectual property when producing several products for private and public use. In other words, it helps software businesses to operate legally and efficiently in the country. However, the setup process requires a professional or a commercial license first.

Besides those licenses, other special permits could be necessary. The Ministry of Communication and Information Technology is the relevant authority that issues these permits. Therefore, it could be impossible to create a software company without them. If you need more information about this, you can contact the authorities or your business setup partner.

As for the software license, the process and requirements could vary depending on the location. For example, in the Dubai mainland, the investor needs to apply for a special business license. This license must contain Software Development and Software Trading exercises included. Besides, you will have a UAE local partner for your license.

On the other hand, free zones allow you to hold 100% proprietorship for both professional and commercial licenses. In addition, you have to issue double licenses for your free zone company. It will allow you to have both exercises with extra expenses.

Here you can learn more information about the trade license in Dubai and how to obtain it.

3.1. Office area requirements.

In Dubai mainland, your workplace could be a business office or a business retail area for professional and business licensing. This area must be at least 200 square feet. As for the free zone licensing, the licenses are issued on the Flexi work area or a separate office. However, it will depend on the needed aspects, like business visas, physical office management, among others.

4. How to set up a software company in Dubai?

How to set up a software company in Dubai?

If you desire to get your Software Development Business License in UAE and establish your business, here’s how to get started. The first thing you must do is choosing the location in which you want to develop your business. Also, it is important to choose a type of company (Free Zone Company, Mainland Company, or Offshore Company).

Once you have chosen these details, you can proceed with the formation of your company. Here you can see how the setup process goes:

  • Outline the specific business activities you want to perform. By doing this, you can determine the license you need.
  • Choose your company name. Take into consideration that there are rules to follow. For instance, you cannot include sensitive or religious content.
  • Complete the company registration process with the relevant local authorities. After this, you must register your company for VAT.
  • Receive your business license after the concerned authorities issue it. If you are in Dubai, the Dubai Company Register will issue your license.

Here you can learn how to set up your business in an Abu Dhabi free zone effectively.

5. What are the required documents for the company registration process?

Opening your software company will require certain documents, like the Software Development Business License in UAE. However, the registration process is first. Before you can register your business, you have to gather some documents. Here is a list of the required documents to complete the registration in Dubai or any other UAE location:

  • Passport copies of the investor who requests the license and his/her partners’.
  • A copy of the local partner’s naturalization book.
  • Proof of payment of the initial approval fee.
  • A NOC (No Objection Certificate) for expatriate partners from their sponsors.
  • The investor must sign the partnership agreement in front of a notary.
  • Partners in a professional license or a single investor must pay a security deposit. The amount can vary according to each situation.

It is important to remember that the investor must add a tenancy contract when applying for the license. The reason for this condition is because the IT Company must possess a registered office. As a final reminder, the relevant authority may also request other documents, depending on the location and other aspects.

Here you can learn about the company registration process in Dubai to complete your setup process.

6. How much can cost to set up a software business in Dubai?

The company registration cost in Dubai will depend on several details. For example, if the investor will hire employees or work alone, the cost varies. The cost can also vary if the investor requires permanent visas, co-working space suffices, etc. The packages that the investors choose can also modify the cost.

A good example of the business setup cost could be the Dubai Internet City Free Zone. In this free zone, the total cost for setting up a software company is around AED 55,000. Here we include the business plan approval charge, the workstation rental, the license fee, and the registration fee.

Here you can learn about the company setup process in Sharjah Airport International Free Zone.

7. How can Connectfz help you obtain more related information?

How can Connectfz help you obtain more related information?

You can set up your business efficiently if you ask for help at the right moment. You can receive both company formation services in UAE and a business partner’s services. Connectfz is the perfect option for you in case you need a setup business partner.

Besides getting the information and guidance you need, you can also request several services after establishing your business. For example, you can request our UAE market entry services to help your company enter the target market. Among other useful services, you can request recruitment, payroll, banking services, and many others.

Would you like to contact Connectfz to know more about the Software Development Business License in the United Arab Emirates? If you have any questions, call us on +97143316688. You can email us at, and you will talk to one of our representatives who will answer your questions.

Kate Williams

Avatar photoKate WilliamsSkills in Communication, Interpersonal Skills, Time Management, Teamwork, and Customer Experience. She is an enthusiastic self-starter with a passion for building relationships with people.

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