Which format fits
Most often a free zone with a technology profile is chosen: visa-free work with foreign clients, a simple licence for development and consulting, and the option to obtain visas for the team. Mainland is needed if you sell services to government and local customers in the UAE.
What to pay attention to
- The activity in the licence should explicitly name software development or IT consulting, otherwise the bank and counterparties will ask questions.
- Code, brand and domains are conveniently held in a separate holding company, with the team and client contracts in the operating company.
- If some developers work outside the UAE, plan in advance how to formalise this: contractor agreements or employment in their country.
Structure and asset protection
The operating company signs contracts with clients and contractors. The holding company owns a stake in it and the rights to the product. This way, risks from client disputes do not pass to the intellectual property.
The overall logic of the structure is described on the page “Asset protection and ownership structures”.
Bank account
Banks look at revenue sources and clients’ countries. Prepare contracts, sample invoices and a description of the product. Payments from certain countries may be reviewed for longer than usual.
More: bank account opening.
Common mistakes
- Registration without understanding where clients and contractors will be
- Rights to the product remain with an individual rather than the company
Where to start
Tell us about your business. We will review your situation and propose a company format, a jurisdiction and an ownership structure. You can compare the options in the article “Free zone or mainland”, and costs are covered in the article “How much does it cost to open a company in Dubai”.
Regulations and licensing requirements change. Current conditions must be verified before launch. The decision to open an account is made by the bank. Tax consequences depend on your residency.