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Software Company License in Dubai

By Shivangi - 16 Apr 2022 Last Updated: 16 Apr 2022
Software Company License in Dubai

For quite some time, the Dubai software sector has been the focus of attention from all over the world. It is home to some of the most interesting brands in the development industry, and it is part of the UAE's estimated USD 8 billion IT business.

Dubai, called the "Silicon Valley of the Middle East," has drawn some of the industry's best to its shores, and it's simple to understand why.

For one thing, the emirate's location and time zone make it ideal for trading and collaborating with other innovation hubs around the world. Then there's the low tax environment, friendly business climate, and simple company formation process to consider.

What is a Software License in Dubai?

The Software Company License in the UAE permits IT companies to consult, create, and sell IT services and products to other businesses and third-party support systems legally.

The process of obtaining a Software Development Business License in the UAE is comparable to that of obtaining any other type of business license.

Software Development Licenses are issued by specialized Free Trade Zones in the UAE for corporate operations such as information technology, software development, application testing, and research and development, among others.

The United Arab Emirates has developed into a major Middle Eastern IT hub, with numerous multinational software businesses establishing subsidiaries in Dubai.

Large IT companies have established headquarters in the United Arab Emirates to oversee and administer the Middle East and North Africa (MENA) as well as the Asian area.

Software Development Companies in the UAE: Growth Drivers

The UAE is at the forefront of information technology, artificial intelligence, and innovation thanks to massive government support.

With rising business prospects and demand from regional corporations, the UAE provides the ideal environment for software development enterprises.

UAE's IT Market Growth

According to the Dubai Chamber of Commerce and Industry Report, the UAE is driven by technology and innovation, with IT investment predicted to expand at an annual rate of 8% to reach AED 23.1 billion by the end of 2019.

Over the next five years, IT spending is predicted to expand at a rate of roughly 7.2 percent each year.

For Software Development companies in the UAE, the expanding number of Free Trade Zones offers a variety of cost-effective company establishment solutions.

Additionally, specific Free Zones cater to the needs of entrepreneurs looking to start a business in the following sectors: information technology, software development, artificial intelligence, computer programming, research and development, and so on.

What does it take to start a Software Company in Dubai?

The authorities have established a simple procedure for forming a corporation in Dubai. If you opt to handle the formalities on your own, knowing the prerequisites for starting a software company in Dubai can assist you in preparing the necessary documents. However, if you entrust us with the responsibility of completing the official processes on your behalf, our professionals will advise you accordingly.

The following are the requirements and factors to consider while starting a software company:

  • If you want to start a software firm in Dubai, you can do it on the mainland or in a free zone. There are several rules and regulations that must be followed while starting a business on the mainland or forming a firm in a free zone in Dubai. Your choice could be based on your observations or requirements. Discuss your goals with Dhanguard so that we can assist you in making the best selection possible.
  • Prepare the Articles of Association (AOA) and Memorandum of Association (MOA) and get them notarized by a notary who has been approved.
  • Register with the authority the trading name that was chosen in line with the rules.
  • Register the business with the  Limited Liability Company (LLC), Free Zone Company (FZC), and Free Zone Establishment are some of the numerous forms of companies available in Dubai (FZE). It's also important to choose the right legal framework.appropriate authority.
  • Fill out a VAT registration form for your business.
  • Obtain a business license in Dubai
  • Commence full-fledged operations.

Obtaining a Software License in Dubai to start a Software Company

To start an IT or software company in Dubai, you'll need a professional license, just like in any other location.

  • The procedure entails registering the business name,
  •  Filling out an application,
  • Gathering all required papers
  • Submitting it to the appropriate official. The professional license is issued by Dubai's Department of Economic Development (DED).
  •  They will thoroughly examine the application and supporting papers before issuing a business license to begin operations.

Documents Required for the Formation of a Software Company in Dubai

To prevent being rejected, include all required documentation with your application. The following documents are required:

  • Copies of the ex-pat and resident partners' passports
  • Naturalization book copy (if you have a resident partner for the business)
  • Certificate of No Objection from Current Employer (for a resident partner only)
  • Pay the Fee for Initial Approval
  • Make a Security Deposit Payment
  • A Partnership Agreement has been signed (In case you are starting the company in partnership, an agreement has to be concluded and it has to be signed in presence of a notary)
  • Tenancy Agreement with the Property Owner where the Company is Located

List of Free Zones in the United Arab Emirates that Issue Software Development Licenses

Here are a few Free Trade Zones in the UAE that offer Software Development Licenses for IT, Software Development, Web Programming, and other commercial operations.

These Free Zones provide a variety of business opportunities for entrepreneurs looking to start an IT or software development company in the UAE.

Dubai Silicon Oasis

The Dubai Silicon Oasis is made up of a Digital Park that contains IT and Software Development enterprises that will fuel regional innovation.

The Dubai Silicon Oasis is made up of a number of start-up incubators, a software program testing center, an innovation hub, and a dedicated IT ecosystem to help IT firms succeed.

The Digital Park is made up of eight office towers that offer everything from flexible workspace to staff housing and smart services.

Large IT companies can take advantage of the Dubai Silicon Oasis Free Zone's specialized office space requirements and simply scale up their operations.

Dubai Technology Entrepreneur Campus (DTEC)

The Dubai Technology Entrepreneur Campus (DTEC) is the best location for software and IT enterprises.

DTEC offers a variety of business setup solutions to meet the needs of each entrepreneur.

DTEC offers a variety of office options, ranging from flexi desks to completely furnished offices (12-50sqm). DTEC is an ideal co-working facility for IT startups and software development companies to interact and work together.

International Free Zone Authority (IFZA) Dubai

The Dubai International Free Zone Authority (IFZA) has teamed up with the Dubai Silicon Oasis Authority to offer low-cost company setup packages to entrepreneurs wishing to establish a base in Dubai.

For software development organizations, IFZA Dubai offers certain commercial activities such as:

  • Software Program Development
  • IT Consulting
  • Software Programming
  • Technology Equipment Sales
  • IT Trade
  • Network & Server Programming
  • Web Programming & ECommerce

IFZA Dubai is one of the region's most dynamic and rapidly expanding Free Zones. It provides budding entrepreneurs with all of the infrastructure and company setup assistance they need to accomplish their ambition of starting a business in Dubai. 

Sharjah Media City (SHAMS) Free Zone

Sharjah Media City (SHAMS) is a vibrant Free Zone in the United Arab Emirates that offers a variety of attractive company formation packages as well as a variety of commercial perks to investors

It offers entrepreneurs a variety of office options, including shared desks (Flexi-desks), shared offices, and dedicated offices (9-50sqm fully furnished office).

The Free Zone's extensive ecology of media, IT, trading, consulting, and business network makes it an IT and media center for the region.

SHAMS is a great place for budding entrepreneurs and start-ups to get their feet wet.


The software development firm has a lot of potential now and in the future. Those who want to start a software firm in Dubai will have a lot of options. Dhanguard Business Setup can connect you with skilled business advisors to assist you design a plan for your software firm in Dubai. Our knowledgeable advisers will help you with the paperwork, gaining permissions and approvals, as well as obtaining your trade license at a fair cost. All you have to do is give us a call and tell us what you need

Dhanguard provides the business setup and company formation services in Dubai, UAE with the guidance of our professional team of consultants. Faster and hassle-free company setup in Mainland and Freezone in UAE.

Dhanguard provides faster and hassle-free Trade License with minimum paper work. With the guidance of our professional team of consultants you will get General trading license, Freelance license, Etrader license, Event Management License, Travel Agency license in Mainland and Freezone in UAE.

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