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Formation of an IT company in the UAE

Updated: Dec 18, 2023

Which country to choose for an IT company? To answer the question, it is important to understand the criteria for choosing a particular jurisdiction. Today we will talk about the advantages and disadvantages of the #UAE as a jurisdiction for the IT sector.

Advantages of registering IT companies in the United Arab Emirates:

🟢The laws in seven emirates are different, so you can choose the right option to suit your business requirements.

🟢There are three completely offshore zones (JAFZA, RAK ICC and Ajman). There is one "free zone", as well as the usual, standard conditions on the mainland.

🟢100% foreign ownership of local companies is allowed and the opportunity to rent a virtual office instead of a real one. There is no need to submit financial statements.

🟢There is an agreement to avoid double taxation with more than 50 countries, including Russia.

Let us remind you that the UAE did not join economic sanctions against Russia.

🟢Complete tax exemption is possible for an IT company, because this area is a priority in the country.

Let’s highlight three disadvantages:

🟠 Everything is complicated. Before registering, you need to understand all the intricacies and possible registration options. Then decide what is best to apply in a particular case.

🟠In March 2022, FATF placed the UAE on a list of jurisdictions subject to increased monitoring, known as its “grey” list, due to “strategic deficiencies” in the country's efforts to counter money laundering and terrorist financing.

🟠 To sell your IT product, you must be certified in one of the local areas: ROHs, IEC, TRA, G-Mark, ISO / IEC 2007.

Free zone IFZA in the UAE - why a business should be registered here ?

International Free Zone Authority, or IFZA, is one of the most popular zones for registering a company, as well as an ecosystem with streamlined logistics and a high level of service.

The main advantages of IFZA:

🟢 Possibility of 100% foreign participation in the capital of a legal entity. On the mainland UAE there are separate restrictions for non-residents on the percentage of ownership of a company's shares.

🟢 Remote company registration and virtual office are available.

🟢 Simplified requirements for companies when obtaining a license, including professional, commercial and industrial licenses.

🟢 Convenient location of IFZA on the territory of Dubai Silicon Oasis, which allows the company to be exempt from customs duties.

🟢 No currency restrictions or requirements for authorized capital.

🟢 100% repatriation of profits and capital.

🟢 When employing foreign employees at IFZA, health insurance is not required, which minimizes the costs of the business owner.

We will help you in registering a company with IFZA

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