Increased investment in infrastructure and development has taken UAE, and specifically Dubai, to a completely new level when it comes to creating a favorable environment for businesses to thrive. Business-friendly policies, state-of-the-art infrastructure, and geostrategic location has made Dubai an ideal place for tech companies to arrive and establish their business with a mindset of becoming a truly global enterprise.
Tech businesses in Dubai can take advantage of multiple factors like the growing inflow of tourists, ever-increasing population, and a rapidly urbanizing landscape that demands cutting-edge technology.
However, like with any other business in any region of the world, there are certain startup do's and don'ts in UAE that you have to keep in mind before dipping their feet into the water.
Do's and Don'ts of Setting Up Business in Dubai
Do’s for a Tech Company
- In Dubai, companies can have a different formation structure on the basis of business requirements. There are Mainland, Free Zone, and Offshore type companies that get registered in Dubai as each type has a different purpose and different benefits depending upon the industry and size of the business.
- The most common and advantageous type of company setup in Dubai is a Limited Liability Company (LLC). A local sponsor is needed to establish this type of business wherein the local person will have 51% ownership of the company but through power of attorney, can give the founders 100% control of the company.
- Tech companies looking to set up shop in Dubai should look to make the most of the entrepreneurial gains that the UAE government has to offer by starting their company in a Free Zone. With benefits such as 100% ownership of the company, duty-free customs boundary, and a quick company setup, Free Zones are fertile grounds for a tech company to blossom.
Don’ts for a Tech Company
- Although setting up a company in Dubai can be very quick and seamless, it is recommended to get it done through a business startup consultancy to avoid complications that foreign investors face.
- It is always advisable for all tech companies to have all the necessary financial funding ready before setting up a business in Dubai. Startup funding options are generally not easily available and it can easily put business operations on hold.
- Published information for Free Zones and other business zones is often changed & modified without prior notice. Therefore, for foreign business organizations, it is advisable not to make concrete plans based on the information that is available on websites and other sources of information.
We hope now you would have understood How to set up an IT company in Dubai and what are the startup do's and don'ts in UAE. Feel free to reach out to us for more information - www.markaicorporateservices.com