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Sector guide: IT, software and SaaS

How to Set Up an IT Company in a Dubai Free Zone From Abroad (2026)

For software developers, IT consultants and small agencies in the UK, India, Pakistan and elsewhere who want to run their business through a Dubai company: which free zones take IT activities, what a one-visa setup costs on our price sheet, how clients abroad pay you, and what tax applies.

By the First Idea Consultant team · Reviewed by Amir Aslam, founder of First Idea Consultant (founded 2015) · Updated October 2026 · 12 min read

The short answer

Most IT services can be licensed in a Dubai free zone, including software development, IT consultancy, web and app design, SaaS and e-commerce platforms. You can set the company up from abroad, own all of it, and sponsor your own residence visa through it. Pick the zone on two points: whether your exact activity is on its list, and how many visas you need now and later.

On our price sheet, a one-visa package (licence, residence visa and Emirates ID) is AED 23,136 in Meydan Free Zone or AED 23,436 in IFZA. A licence without a visa is AED 12,500 or AED 12,900. Plan one trip to the UAE for the visa medical test and Emirates ID biometrics.

Setting up an IT company in a Dubai free zone

Which Dubai free zones accept IT companies in 2026?

Each Dubai free zone licenses companies through its own authority. These five come up most with IT founders, listed alphabetically, not ranked. The right one depends on your activity, your visa count and whether you want a desk or a real office. Check the exact activity name on the zone's own list before you pay.

Free zoneAuthority siteIT focus, as the zone describes itOffice optionsOn our price sheet?
DMCCdmcc.aeRuns tech, AI, gaming, crypto and e-commerce ecosystems, with licences ranging from tech development to consultancy.Flexible office solutions and full offices in its Jumeirah Lakes Towers district.No. Written quote on request.
Dubai Internet City (DIC)dic.aeA technology business hub and a member of TECOM Group, aimed at tech, design and media companies.Commercial offices, D/Quarters coworking, in5 centres for start-ups, and the GoFreelance package for freelancers.No. Written quote on request.
Dubai Silicon Oasis (DSO)dso.aeA knowledge and innovation zone under the Dubai Integrated Economic Zones Authority (DIEZ). Its clusters include AI and IoT, cybersecurity and Web 3.0.Co-working and workstations, office space and boutique office buildings.No. Written quote on request.
IFZA (International Free Zone Authority)ifza.comA multi-activity Dubai free zone for services, consultancy and trading. Confirm your IT activity on IFZA's own list.Flexi-office address, included in our packages.Yes. See the cost tables below.
Meydan Free Zonemeydanfz.aeIts searchable activity list has an ICT category for technology and content businesses.Flexi-office address, included in our packages.Yes. See the cost tables below.

For clients abroad and one or a few visas, a flexi-office package in IFZA or Meydan usually costs least on our sheet. For a tech community, a physical office or a bigger team, compare DIC, DSO and DMCC and ask us for a quote. For a wider look at zones and licence types, see our Dubai free zone licence guide

Which IT licence activity do you need?

The activity on your licence decides what you can invoice for, so choose it before the zone and check the exact wording on the zone's own list. A "software company" in Dubai is the same setup as an IT company. The common IT groups are:

Software development

Writing, testing and maintaining software for clients or for your own product. Some zones split it into computer programming and software design, so pick both if you do both.

IT consultancy

Advice on systems, cloud, architecture or digital projects. A good fit for contractors who bill by the day or by the project.

Web and app design

Websites, mobile apps and UX work. Often combined with software development, or with a digital marketing activity, on one licence.

SaaS and online platforms

If you sell subscriptions to your own software, look for an activity that covers software publishing or online platforms, not only consultancy.

E-commerce platforms

Running an online store or marketplace normally needs an e-commerce or trading activity on top of IT services.

Cybersecurity and network services

Some security, network and data centre activities need approval from another authority, so read the zone's notes on the activity before you apply.

Payments, virtual assets, telecoms and other regulated services do not fit a standard IT licence. They need approval from the relevant regulator first, and they are outside our price sheet.

Running an agency that sells marketing as well as development? Read our guide to digital marketing company setup in Dubai

Free zone or mainland for an IT company?

Both routes are open to foreign owners. Free zone companies are licensed by their zone authority. Dubai mainland companies are licensed by the Department of Economy and Tourism (DET), and since 2021 most mainland activities can be fully foreign-owned. For an IT business, the deciding question is who your clients are.

QuestionFree zone companyDubai mainland company
Who issues the licence?The free zone authority, such as IFZA, Meydan, DIC, DSO or DMCCDepartment of Economy and Tourism (DET)
Suits clients who areAbroad, or other free zone companiesIn the UAE, including retail customers and government bodies
OwnershipFull foreign ownershipFull foreign ownership for most activities; some strategic activities have limits
OfficeA flexi-office address in many packagesA business location is one of the licensing steps
On our price sheet?Yes, for IFZA and Meydan (see the cost tables)No. Written quote on request

If you mainly serve clients abroad, a free zone is usually simpler and cheaper. If you plan to sell to UAE companies outside the free zones or bid for government work, ask about a mainland licence first, because a free zone company may need extra permits to trade on the mainland. For both routes side by side, see company registration in Dubai

How to register an IT company in Dubai, step by step

This is the usual order for a one-visa free zone setup from abroad. Times are typical, not promises, and depend on the zone, your documents and appointment slots.

StepWhat happensTypical time
1Choose the activity and zoneWe match your services to the zone's activity list and agree the package, the number of visas and the shareholders.A day or two of messages
2Reserve the name and applyYou send passport copies and your name options. The zone checks the name and reviews the application.A few working days. Meydan, for example, states 3 to 5 days for its regular activities.
3Licence and company documentsThe zone issues the licence, MOA, certificate of registration and share register, then the establishment card that lets the company sponsor visas.Usually within days of approval
4Entry permit or status changeIf you are abroad, the company applies for your entry permit. If you are already in the UAE on another visa, a status change means you do not have to leave (an optional extra on our sheet).The UAE portal says you enter within 30 days of the permit approval
5Medical test and Emirates IDIn the UAE you take the visa medical fitness test and give biometrics for your Emirates ID. This is the step that needs you in person.Often a few days in the UAE, depending on appointments
6Residence visa issuedThe residence visa is issued against your passport and the Emirates ID card follows.Depends on ICP or GDRFA processing
7Tax registration and bankRegister the company for corporate tax (included free in our Standard package) and apply for business and personal accounts.Banks set their own timelines

Your residence visa is tied to the company that sponsors it. For the visa routes in more detail, read our page on the UAE investor visa through your own company. Before your first trip, check the Dubai business visa requirements for your passport.

What documents do you need to register an IT company?

For a free zone IT company with one visa, expect to provide:

  • A clear passport copy for each shareholder and the manager, with enough validity left for the visa
  • A passport-style photo on a white background
  • Three company name options in English
  • Your chosen activities and a short description of what the company will do
  • Shareholder details and the share split, if there is more than one owner
  • Your current UAE visa page, if you are already in the country
  • For the bank later: a CV or LinkedIn profile, client contracts or letters of intent, sample invoices and proof of where your funds come from

Some zones also ask for proof of your home address or a short business plan. Corporate shareholders need extra, attested company documents. We send you the exact list for your zone before you pay.

What does an IT company in Dubai cost?

These are the approved package prices we quote, for IFZA and Meydan only. IFZA and Meydan are separate packages, so read one column or the other; the two are never added together.

One-visa (Standard) package, line by line

ItemMeydanIFZA
Trade licenceAED 12,500AED 12,900
Visa allocationAED 1,850AED 2,000
Establishment cardAED 2,000AED 2,000
Residence visa (IFZA: manager or employee visa)AED 4,000AED 3,750
Medical test (normal)AED 400AED 400
Biometrics and Emirates ID (normal)AED 386AED 386
Professional service fee (promotional)AED 2,000AED 2,000
Package totalAED 23,136AED 23,436

All packages

PackageMeydanIFZAWhat it covers
Basic, no visaAED 12,500AED 12,900Licence, MOA, flexi-office address, certificate of registration and share register. For a company you run from abroad without UAE residence.
Standard, one visaAED 23,136AED 23,436Everything in Basic plus one residence visa, medical test, Emirates ID and free corporate tax registration.
Premium, digital bankAED 28,136AED 28,436Standard plus a digital company stamp, help opening a digital or fintech business account, and one personal account.
Premium, local bankAED 33,136AED 33,436Standard plus a digital company stamp, help opening a business account at a local bank (you attend in person), and one personal account.
GoldAED 48,136AED 48,436One visa, one year of corporate services support, a local business account with a relationship manager, a digital business account and two personal accounts.

Optional extras

  • Status change inside the UAE, if applicable: AED 1,600
  • VIP medical, instead of the normal medical: AED 750
  • Help with an earlier biometrics appointment: AED 600
  • Totals include our professional fee at its current promotional rate: AED 0 on Basic (regularly AED 1,000) and AED 2,000 on Standard and Premium (regularly AED 3,500). Gold includes a professional fee of AED 5,000 (regularly AED 10,000). If a promotion ends, these totals change.
  • Bank account opening is subject to the bank's KYC, compliance review and final approval.
  • Our sheet does not cover DIC, DSO, DMCC or a mainland licence. Send us your activity and visa count on WhatsApp and we reply with a written quote.
  • Also budget for the yearly licence renewal, visa renewal, any office upgrade, bookkeeping and the corporate tax return. Ask for a renewal quote when you sign up.

Every quote is in writing before you pay, and we usually reply within a couple of hours.

Getting paid by clients abroad: bank and payment accounts

Most IT founders set up in Dubai to invoice clients in the UK, Europe, the US or India from a UAE company. That needs a business account in the company's name, and the bank will want to understand where the money comes from and who your clients are.

Our sheet has two routes, both in the Premium package: a digital or fintech business account, which suits remote founders who want to invoice quickly, or a standard account at a local bank, which needs you to attend in person. Many founders start digital and add a local bank later.

Keep personal and company money apart from day one: invoices from the company, client payments into the company account, and a salary or dividend to yourself. It makes the corporate tax return and any bank review far easier.

What a bank compliance team usually asks an IT company

  • Who your clients are and which countries they pay from
  • Signed contracts, statements of work or letters of intent
  • Your CV or LinkedIn profile showing your IT experience
  • A simple website or company profile
  • Expected monthly turnover and the currencies you will receive
  • Proof of the source of your starting funds

Bank account opening is subject to the bank's KYC, compliance review and final approval. We prepare the file with you, but the decision is the bank's.

For digital banks, multi-currency accounts and what non-residents can open, read our guide to international online bank account opening

Tax for an IT company in the UAE

UAE tax is simple, but not zero by default. Check these points with a tax adviser before you rely on any rate.

Corporate tax

Taxable income up to AED 375,000 is taxed at 0% and income above that at 9%, for financial years starting on or after 1 June 2023 (Ministry of Finance). Companies must register with the Federal Tax Authority, and registration is included free in our Standard package.

The free zone 0% rate

A Qualifying Free Zone Person pays 0% only on qualifying income and must meet conditions set by law. Income from clients outside the free zones, including clients abroad, counts only if it comes from a qualifying activity on the official list. Many IT service firms should therefore plan on the normal 0% and 9% bands. The Federal Tax Authority's free zone guide (October 2026) sets out the rules.

Small Business Relief

If revenue stays at or below AED 3,000,000, a company can elect Small Business Relief for a tax period, but a Qualifying Free Zone Person cannot. Check the Federal Tax Authority page for the periods it still covers.

VAT

VAT is 5%. Registration is mandatory once taxable supplies and imports exceed AED 375,000 a year, and optional above AED 187,500. Services supplied to clients outside the UAE may be zero-rated if the conditions in the VAT law are met, so take advice before you invoice without VAT.

Tax at home

A Dubai company does not end your tax at home if you still count as resident there. The UK, India and Pakistan each have their own residence tests. Speak to an adviser in your home country before you move or start invoicing through the new company.

Data and IP points to check

  • Personal data

    The UAE Personal Data Protection Law (Federal Decree-Law No. 45 of 2021) came into force on 2 January 2022. It covers personal data processed inside or outside the country and sets rules for cross-border transfers. DIFC has its own data protection law. If you host or process client data, read the official summary. u.ae: data protection laws

  • Trademarks

    Brand names and logos are registered with the Ministry of Economy under Federal Decree-Law No. 36 of 2021 on Trademarks. Approval of your trade name by a free zone is not a trademark registration. Ministry of Economy: IP legislation

  • Who owns the code

    Make sure your client contracts say whether the code and other IP pass to the client or stay with your company, and that any freelancers you hire assign their work to the company in writing.

Common mistakes IT founders make

  1. 1

    Choosing the zone before the activity

    A cheap package is no use if the zone does not list your exact activity. Start from what you will invoice for, then pick the zone.

  2. 2

    Assuming a free zone means 0% tax

    The free zone 0% rate applies only to qualifying income. IT service income from clients abroad often falls under the normal corporate tax bands instead.

  3. 3

    Not planning the UAE trip

    The medical test and Emirates ID biometrics need you in the UAE. Set aside a few days and avoid other travel during that window.

  4. 4

    Opening the bank file with no contracts

    Banks look for real clients. A signed contract or two and a few invoices from your current work help more than a long business plan.

  5. 5

    Forgetting home-country tax

    Your company may be in Dubai, but if you still live in London, Mumbai or Lahore for most of the year, your home tax rules may still apply to you.

Frequently asked questions

How do I start an IT company in Dubai?

Choose your IT activity, pick a free zone that lists it, and apply with your passport copy and name options. The zone issues the licence and company documents, then the company sponsors your residence visa after a medical test and Emirates ID biometrics in the UAE. Most of this can be done from abroad; the medical test and biometrics need you in person.

Which free zone is good for an IT company?

There is no single answer. Compare zones on whether your exact activity is on the list, how many visas you need, and whether you want a flexi-office or a real office. IFZA and Meydan suit small teams serving clients abroad at the lowest cost on our sheet; DIC, DSO and DMCC suit founders who want a tech community or a physical office.

How much does it cost to register an IT company in Dubai?

On our price sheet a licence with no visa is AED 12,500 in Meydan or AED 12,900 in IFZA, and a one-visa package is AED 23,136 in Meydan or AED 23,436 in IFZA. The professional fee in these totals is promotional. Other zones and mainland licences are quoted in writing on request.

Can I run a software company in Dubai from abroad?

Yes. You can own and manage a Dubai free zone company while living abroad, and our Basic package without a visa is built for that. If you want UAE residence through the company, you need one trip for the medical test and biometrics. Your home country may still tax you if you remain resident there.

Do I need an office for an IT company in a Dubai free zone?

Not a full office for a small setup. Our IFZA and Meydan packages include a flexi-office address. Zones such as DIC, DSO and DMCC also offer coworking and full offices if you want a team space. A larger visa quota can require a bigger office, so tell us your hiring plans early.

Do IT companies pay corporate tax in the UAE?

Yes: 0% on taxable income up to AED 375,000 and 9% above it. The free zone 0% rate covers only qualifying income, so many IT service companies pay under the normal bands. Registration is required and is free in our Standard package.

Can my IT company sponsor developers' visas?

Yes. Once the company has its establishment card, it can sponsor employee visas within the visa quota of its package and office. Each employee needs a medical test and Emirates ID biometrics. Our Standard package covers one visa; tell us how many developers you plan to hire and we quote the extra visas in writing.

Is a freelance permit an option instead of a company?

For a solo developer it can be. Dubai Internet City offers a GoFreelance package for freelancers in media, tech and education. A company usually fits better if you want to hire staff, sign contracts as a business or open a corporate bank account.

Ready to set up your IT company?

Send us your activity, where your clients are and how many visas you need. We confirm the activity on the zone's list and send a written quote for IFZA or Meydan, or for DIC, DSO or DMCC on request.

We usually reply within a couple of hours.

Official sources, checked on 8 October 2026

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