IT Company SetupSoftware development

No additional approvals are required to register a company conducting this business activity.

The minimum share capital required for this company is AED 50,000. It must be contributed within 90 days of obtaining the license.
If a shareholder plans to obtain an investor visa, his/her share in the share capital must be at least AED 50,000.

The DMCC company registration provides various benefits and opportunities for entrepreneurs:

• Access to local and global markets. Companies registered in the free zone can conduct business within the free zone and beyond the UAE. This helps to expand business, create and strengthen partnerships and enables interaction with clients and partners worldwide.
• Strategic location. The free zone is situated in Dubai, in the Jumeirah Lake Towers (JLT) area, providing convenient access to international airports, seaports, and key business hubs of the city. This location supports optimal logistics, the development of partnerships, and business expansion in regional and international markets.
• Remote company registration. The free zone enables entrepreneurs to establish their business remotely, without the need for physical presence in the UAE, providing convenient access to the registration process from anywhere in the world.
• Full profit control. The free zone enables foreign entrepreneurs to retain 100% ownership of their company, granting full control over profits and unrestricted capital repatriation outside the UAE. This fosters an optimal environment for strategic financial planning and efficient business management, free from limitations on economic activities.
• Wide range of business activities. The free zone offers an extensive list of business activities, enabling entrepreneurs to develop projects in various industries, including trading commodities (gold, diamonds, metals, energy resources, tea, and coffee), logistics, finance, professional services, information technology, e-commerce, and manufacturing.
• Customized business solutions. The free zone provides special solutions for companies engaged in e-commerce, technology, cryptocurrency, and investments in the JLT business district, offering affordable packages and convenient conditions for business growth.
• Tax and customs benefits. Designated zones offer benefits on the import, export, and re-export of goods both within their own territory and between other designated zones. These zones exempt goods from VAT, provided the criteria set by the Federal Tax Authority (FTA) are met, allowing companies to minimize their tax burden.
• Business ecosystem. The free zone provides unique ecosystems for companies operating in key industries such as agribusiness, tea, coffee, gold, diamonds, lab-grown diamonds, colored gemstones, energy, water resources, technology, gaming, cryptocurrency, artificial intelligence, e-commerce, sustainability, and financial services. These specialized ecosystems include access to modern platforms, industry experts, and support programs, fostering innovation, scaling, and effective integration into international markets.

• Various property options for rent and/or purchase are available within DMCC, provided upon preliminary request and subject to availability:
  1. Shared desks/Coworking spaces: The Shared desks/Coworking spaces afford up to 1 visa quota. Multiple office solutions can be rented for obtaining four or more visa quotas.
  2. Flexi Desk (from AED 17,460/year). A workspace in the coworking with access up to 4 hours per week during business hours upon prior reservation. Included in the registration package Jump Start. A refundable deposit of AED 1,000 will be charged.
  3. Special Flexi Desk. A workspace in the coworking with access for 1 hour over a month. Included in the registration packages Basic Biz and JLT Resident. Special Flexi Desk affords 1 visa quota.
  4. Coworking Desk (from AED 20,610/year). A workspace in a coworking with access during business hours. Included in the registration packages Jump Start+. A refundable deposit of AED 1,900 will be charged.
  5. Serviced Desk (from AED 37,410/year). Dedicated desk in a coworking with unlimited access during business hours. A refundable deposit of AED 3,500 will be charged.
  6. Dedicated Offices:
     • The Dedicated Office affords from 4 to 10 visa quotas, depending on the office area, calculated at 9 sq.m. per quota.
     • Serviced Office (from AED 58,410/year). A furnished office with access during business hours. A refundable deposit will be charged.
  7. Private Offices: Visa quotas are provided depending on the office area, calculated at 9 sq.m. per quota.
     • For rent (AED 50 – 150 per sq.ft/year). An office with unlimited 24/7 access. A refundable deposit will be charged.
     • For purchase (AED 500 – 1,500/sq.ft). An office with unlimited 24/7 access.
  8. Commercial premises: For rent (AED 100 – 200 sq.ft/year). Retail spaces in business centers, commercial, warehouse, and industrial units, workshops, and standalone buildings. Visa quotas are provided depending on the office area, calculated at 9 sq.m. per quota. A refundable deposit will be charged.

The UAE imposes a variety of taxes and fees that regulate the financial activities of both legal entities and individuals. Below are the main ones:

1. Value Added Tax (VAT):
   • Since January 1, 2018, the UAE has implemented a VAT rate of 5%, which applies to most goods and services and is charged to companies operating within the country, except for those registered in designated zones.
   • A Designated Zone is a territory within a free zone that is treated as outside the UAE for tax purposes, allowing goods to be exempt from taxation, provided certain criteria are met. The main taxation rules in Designated Zones are:
     • Designated Zones are listed in the Cabinet Decision to Federal Decree-Law No. (8) of 2017 on Value Added Tax (VAT).
     • Goods tranferred between or within Designated Zones are not subject to VAT.
     • The export and import of goods between a Designated Zone and a foreign company are also VAT-exempt.
   • For local companies and those registered in Non-Designated Zones (free zones not included in the Designated Zones list), the standard tax rules set forth in the Federal Decree-Law on VAT apply.
     • Companies with an annual turnover exceeding AED 375,000 are required to register with the Federal Tax Authority (FTA) as VAT taxpayers.
     • Companies with a turnover between AED 187,500 and AED 375,000 may register on a voluntary basis.
     • Companies can offset VAT paid on purchases of goods and services (input VAT) against the VAT they collect on sales (output VAT), shifting the tax burden to the final consumer.
     • Some goods and services may be exempt from VAT or taxed at a 0% rate, such as international transportation, educational, and medical services.
2. Corporate Tax:
   • As of June 1, 2023, the UAE has introduced a corporate tax at a rate of 9%, levied on the taxable net profit of companies with income exceeding AED 375,000.
   • A 0% rate is applied to taxable income not exceeding AED 375,000.
   • Charitable, non-profit organizations and medical institutions are fully exempt from corporate tax.
3. Excise Tax:
   • Since October 1, 2017, the UAE has introduced an excise tax aimed at reducing the consumption of harmful products and funding healthcare initiatives.
   • The tax applies to alcohol, tobacco products, and beverages containing added sugar, including energy and carbonated beverages.
   • Excise tax rates vary by product category:
     • 50% on carbonated drinks (excluding mineral water)
     • 100% on tobacco products
     • 100% on energy drinks
     • 100% on electronic smoking devices and related liquids
     • 50% on products containing added sugar or sweeteners.
   • Companies dealing with excise goods must register with the Federal Tax Authority (FTA), submit monthly declarations, and maintain records. Excise tax is paid upon the import, production, or release of goods for consumption in the UAE.
4. Customs Duties:
   • Custom duties in the UAE are applied to most imported goods at a standard rate of 5% of the cost, insurance, and freight (CIF). Some product categories, such as pharmaceuticals and food items, may be exempt from duties or subject to reduced rates.
   • Goods imported into the UAE's free zones are generally not subject to customs duties as long as they remain within these zones. However, once such goods are moved to the UAE mainland, standard duties apply.
5. Personal Income Tax:
   • In the UAE, personal income is not subject to taxation.
   • UAE citizens and residents are exempt from paying taxes on their personal income, including salaries, interest, dividends, inheritances, gifts, luxury goods, and capital gains.
6. Other Local Taxes and Fees:
   • Individual emirates may impose specific local taxes and fees in line with their economic and social needs.
   • These taxes and fees are aimed at supporting public services and implementing infrastructure projects.

DMCC offers the following main types of UAE resident visas for foreign investors and company employees:

• Investor Visa: 
  • Issued to foreign investors and entrepreneurs who invest in or acquire companies.
  • Allows for business management, living, and working in the UAE.
  • Grants the right to sponsor family visas.
  • Valid for two years but can be canceled if the investor is absent from the UAE for more than six months.
• Employment Visa:
  • Issued by the company for its foreign employees.
  • Permits residency and employment in the UAE.
  • Depending on the job position, education and specialization may need to be verified.
  • Valid for two years but can be canceled if the employee is absent from the UAE for more than six months.
  • Can be renewed alongside the employment contract.
• Dependent Visa (for family members and domestic staff):
  • Issued to the sponsor's family members and accompanying domestic staff (nannies, housekeepers, caregivers, etc.).
  • Permits residency in the UAE.
  • Valid for two years.
• Student Visa:
  • Issued to foreign students enrolled in universities and colleges registered with the freezone.
  • Allows for living and studying in the UAE.
  • Valid for the duration of the study period.