Company Registration in Dubai: Step-by-Step Guide for Software Startups (2025 Update)

Why Start a Software Company in UAE?

The UAE has developed into a global technological center. Foreign investors and business visionaries are setting up software companies in UAE because of world-class infrastructure, business-friendly policy, and export market access. The city of Dubai itself is a hotbed of innovation. Special economic zones like Dubai Internet City (DIC) and Dubai Silicon Oasis (DSO) attract many new software companies in Dubai every year as they provide incubators, accelerators, and immunity from taxes.

Having a business in this region adds credibility and access to a diversified talent pool. You can choose either to offer software services in the region or go worldwide, and Dubai is the perfect launch pad.

Choosing the Right Business Structure

When setting up a business in Dubai, the first big decision is your company structure.

Free Zone Company: Best for tech startups. Free zones provide 100% ownership, profit repatriation, and no import/export duties. They are the most popular option for software companies in Dubai.

Mainland Company: Registered under the Dubai company register (Department of Economy and Tourism, DET). This option allows you to directly serve the UAE market. It is slightly more expensive but gives you wider market access.

Offshore Company: Suitable if you only want to hold assets or trade internationally. Offshore firms cannot run active software operations inside the UAE.

Most software entrepreneurs choose Free Zones for flexibility and cost-effectiveness, while larger IT companies prefer Mainland for local contracts.

Step-by-Step Process for Company Registration in Dubai

The process of company registration in Dubai has been streamlined in recent years. You can complete many steps online through government portals like the UAE Ministry of Economy’s official business platform.

1- Select a Jurisdiction – Decide between Free Zone, Mainland, or Offshore based on your goals.

2- Reserve a Trade Name – Your company name must be unique and aligned with UAE’s naming rules. Reservation costs between AED 620–1,000.

3- Get Initial Approval – Submit your passport, application form, and business activity details for pre-approval.

4- Draft the Memorandum of Association (MOA) – If you choose Mainland, you’ll need a notarized MOA that defines the ownership and business structure.

5- Secure an Office Space – Free Zones allow flexi-desk or shared spaces, while Mainland requires a physical office lease.

6- Apply for Your License – A professional or commercial license is needed for software activities. This is the most important step in the UAE company register process.

7- Apply for Visas – Once licensed, you can apply for investor visas and employee visas.

8- Open a Bank Account – Corporate accounts are mandatory for operations.

9- Finalize Registration – Submit all documents, pay fees, and receive your trade license.

Cost of Registering a Software Company in Dubai

 The fee differs depending on the jurisdiction in which you register. With Free Zones, we are talking AED 12,000 – AED 25,000, which usually includes your trade license and a minimum office package. Mainland registration is more expensive, usually AED 15,000 – AED 35,000, as you have to lease an on-site office and cover additional government fees.

 The rest are AED 620–1,000 fees for trade name reservation, around AED 1,200–2,000 fees for first approvals, and visa fees from AED 3,000–7,500 per person. The flexi-desk office, if selected, would be around AED 5,000–20,000 per annum, and larger physical offices in the Mainland could go up as much as AED 100,000 per annum, depending on the location. Their renewal fees are paid on a yearly basis, and Free Zones tend to offer package specials that reduce renewal fees.

 Budgeting accurately allows you to avoid surprises. The majority of entrepreneurs hire consultants in a bid to manage these costs and ensure everything goes well during company registration.

Benefits of Registering in Dubai

Registering through the Dubai company register or Free Zones gives you several advantages:

• 100% foreign ownership in Free Zones and many Mainland sectors

• Zero personal income tax and corporate tax exemptions in specific zones

• Easy repatriation of profits to your home country

• Access to skilled IT professionals and global talent

• Legal protection of intellectual property

These benefits explain why the UAE company register grows every year with new tech and software ventures.

Software Companies in Sharjah – A Cost-Friendly Option

While Dubai attracts the majority, many entrepreneurs also choose to establish software companies in Sharjah. The emirate offers lower operational costs, making it attractive for startups and small businesses. Free zones such as Sharjah Media City (Shams) provide affordable packages, quick registration, and access to regional clients. For companies targeting budget-friendly setup options, Sharjah is worth considering.

Can Foreigners Register a Company in Dubai?

Yes. Foreigners can set up businesses in both Free Zones and Mainland. The recent law reforms allow 100% foreign ownership in many sectors, including IT and software. This means you no longer need a local partner or sponsor to run your company.

This update makes Dubai one of the most attractive destinations for global entrepreneurs looking to establish software firms.

Key Tips for a Smooth Registration

• Always check which Free Zone aligns best with your activity.

• Use government portals to speed up processing.

• Work with business consultants for complex paperwork.

• Plan extra budget for license renewals, visas, and office expenses.

By following these steps, you can complete company registration in Dubai faster and without complications.

FAQs

1. What is the cost to register a company in Dubai?

The cost ranges between AED 12,000 and AED 35,000 depending on jurisdiction, license type, and office requirements. Free Zones are usually cheaper, while Mainland comes with higher office and government fees.

2. How to register a company in the UAE from Pakistan?

You can apply online, hire a consultant, or use the official “Basher” e-service. You will need attested passport copies, a business plan, and supporting documents. Registration can be completed without traveling, although some steps may require notarization.

3. Can a foreigner set up a company in Dubai?

Yes. Both Free Zones and Mainland now allow foreign investors to establish companies with full ownership in many industries, including software development.

4. Can I own 100% business in Dubai?

Yes. Free Zones always allowed it, and recent legal reforms now allow 100% foreign ownership in many Mainland sectors as well.

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