A Complete Guide to Starting an IT Services Business

To setup an IT services business at Dubai South Business Hub Free Zone, the basic licensing starts at AED 12,500 and increases as you add more services such as VAT registration, banking assistance and flexible coworking spaces. Dubai's technology sector is growing at pace, driven by government digital transformation investments, a large enterprise client base, and a growing startup and SME ecosystem. 

This growth has created consistent demand for IT services across industries. Businesses providing software development, IT consultancy, system integration, and software publishing products operate within an active and commercially viable market from the outset. Dubai South Business Hub Free Zone provides a fast, cost-effective pathway to a licensed UAE IT services entity. 

IT services at Dubai South Business Hub Free Zone cover software development, software publishing, software product trading, and professional IT consultancy. Most activities do not require pre-approvals, allowing eligible applications to be licensed within one business day. Telecommunications-related activities may require approval from the Telecommunications and Digital Government Regulatory Authority. 

For a step-by-step overview of the process, you can refer to the online company registration in Dubai guide. 

Getting Your IT Services License at Dubai South Business Hub Free Zone 

An IT services license at Dubai South Business Hub Free Zone starts from AED 12,500.  

The IT services business can be structured in different ways depending on how you intend to operate. Some businesses focus on custom software development and client projects, while others build proprietary products or operate as software distributors. Many combine all three, offering consultancy, development, and product distribution under one license. 

Since no two business structures are the same, using the cost calculator provides a clearer estimate based on your specific requirements. Selecting the right activity structure at the outset allows your business to scale without requiring amendments later. For tailored guidance, you may also contact the Dubai South Business Hub Free Zone team. 

Business Activity Codes for IT Services 

• 6200.00   Computer Programming, Consultancy and Related Activities 

• 6201.00   Computer Programming Activities 

• 6201.01   Designing the Structure and Content of Computer Code 

• 5820.00   Software Publishing 

• 5820.01   Publishing of Ready-Made Software 

• 4651.02   Wholesale of Software 

• 4741.87   Computer Systems and Communication Equipment Software Trading 

• 4741.96   Encryption Software Trading 

Computer Programming and Development - 6200.00 / 6201.00 / 6201.01 

Computer Programming, Consultancy and Related Activities (6200.00) acts as the umbrella activity for most IT service providers. It covers software development, system integration, and technical consultancy.  

Computer Programming Activities (6201.00) focuses on the development of software applications, systems, and programmes. While Designing the Structure and Content of Computer Code (6201.01) applies to the technical architecture and code design phase of software development. Together these three codes provide comprehensive coverage for an IT services business delivering custom software, application development, systems integration, and IT technical services. 

A business operating under these activities may function as a software development company building custom enterprise applications for UAE corporate clients, a mobile app development studio serving the UAE startup ecosystem, or an IT services firm delivering systems integration projects for UAE government and corporate clients. 

Third-Party Approval: None.  |  AML / DNFBP: Exempt. 

Software Publishing License - 5820.00 / 5820.01 

Software Publishing (5820.00) and Publishing of Ready-Made Software (5820.01) apply to businesses that publishes and commercially distribute software products along with commercial publication of non-customised software products respectively. Unlike development-focused activities, these codes are suited to companies that create proprietary software and bring it to market as a commercial product rather than delivering custom development services on a project basis. 

Third-Party Approval: None.  |  AML / DNFBP: Exempt. 

Software Trading - 4651.02 / 4741.87 / 4741.96 

Wholesale of Software (4651.02) covers the wholesale supply and distribution of software products. Computer Systems and Communication Equipment Software Trading (4741.87) covers trading in system software, firmware, and communication equipment software. Encryption Software Trading (4741.96) covers the commercial trading of encryption and security software products. These trading codes are appropriate for IT businesses that resell or distribute software products alongside developing or publishing their own. 

Third-Party Approval: None.  |  AML / DNFBP: Exempt. 

Why Dubai for IT Services Businesses? 

The UAE technology sector is growing, with government investment in smart city infrastructure, digita services, AI adoption, and cloud transformation. It all creates high demand for IT services companies across both public and private sectors.  

The presence of multinational companies, regional headquarters, and fast-growing startups creates a commercially active environment for IT service providers. Dubai South Business Hub Free Zone places your IT business within a master-planned business district with connectivity to key corporate client clusters across Dubai and Abu Dhabi. 

How to Get Your IT Services License at Dubai South Business Hub Free Zone 

The setup process is handled entirely online, allowing you to move from application to license issuance without physical paperwork or in-person steps. You begin by selecting your business activities and confirming your company name. You can run a company name check to confirm whether your preferred business name is available and ensure compliance before proceeding with registration. Once finalised, the application can be submitted online with the required documents, including a passport copy. 

Beyond Hub handles post-licensing and provides value-added business support services such as handling UAE residence visa applications, corporate bank account introductions, and VAT registration. IT services companies often benefit from early VAT registration as they invoice corporate clients who require VAT-registered suppliers for their own input tax recovery.  

Most IT activities carry no pre-approval requirements, allowing eligible applications to be licensed within one business day. Businesses operate with 100% foreign ownership, zero paid-up capital, and full profit repatriation within a UAE free zone structure. 

Frequently Asked Questions 

Q1. How much does an IT services business license cost in Dubai? 

An IT services license at Dubai South Business Hub Free Zone starts from AED 12,500. The total cost depends on visas, Emirates ID processing, and additional services selected. You can use the cost calculator to generate a detailed estimate. 

Q2. What is the difference between software development and software publishing? 

Software development codes (6201.00, 6201.01) cover building custom applications and software for clients on a project basis. Whereas, Software Publishing (5820.00, 5820.01) covers the commercial publication and distribution of packaged software products. Many IT businesses select both sets of codes to cover custom development and product offerings. 

Q3. Can I sell software products with a Dubai South Business Hub Free Zone IT license? 

Yes. Wholesale of Software (4651.02) and Software Publishing (5820.00, 5820.01) cover the commercial sale and distribution of software products. These codes sit alongside development codes on the same Dubai South Business Hub Free Zone license, covering both the services and product trading dimensions of an IT business. 

Q4. Can I combine IT services with IT consultancy? 

Yes. Computer Consultancy Activities (6202.00) and Information Technology Consultants (6202.91) can be combined with software development and publishing codes on a single Dubai South Business Hub Free Zone license, covering advisory, development, publishing, and product trading under one entity. This is the standard structure for full-service IT businesses that advise on technology strategy and also deliver implementation projects. 

Q5. Can a foreigner own 100% of an IT services company in Dubai? 

Yes. Dubai South Business Hub Free Zone allows 100% foreign ownership of IT services businesses with no requirement for a local sponsor or UAE national partner. International technology entrepreneurs and IT companies can establish a fully foreign-owned UAE entity with complete commercial control and profit repatriation. 

Q6. Can I work with government clients from a Dubai South Business Hub Free Zone IT license? 

Free zone companies can engage with UAE government clients subject to any specific procurement requirements of the relevant government entity. Some government technology contracts may require a mainland licensed entity or a local partner. Seek advice on specific government procurement requirements as part of your client engagement planning. Many free zone IT companies also establish a mainland subsidiary once government business justifies the additional structure. 

Q7. Can I resell third-party software with a Dubai South Business Hub Free Zone license? 

Yes. Wholesale of Software (4651.02) and Computer Systems and Communication Equipment Software Trading (4741.87) cover the resale and distribution of third-party software products. These codes support VAR (value-added reseller) and technology distribution business models.

Q8. Can I publish mobile apps with an IT services license? 

Yes. Software Publishing (5820.00, 5820.01) and Computer Programming Activities (6201.00) together allow you to develop and publish mobile applications as a registered developer on platforms such as the Apple App Store and Google Play. Revenue from UAE app sales and in-app purchases flows to your Dubai South Business Hub Free Zone entity. 

Q9. How long does an IT services license take? 

Eligible applications can be licensed within one business day, as most IT activities do not require pre-approvals at Dubai South Business Hub Free Zone. The fully digital application requires only a passport copy and processes without the need for document notarisation or physical attendance. 

Q10. How do I start an IT services business at Dubai South Business Hub Free Zone? 

Browse the business activities list to confirm your codes, run a company name check, and apply digitally with a passport copy. Eligible applications are licensed within one business day, with Beyond Hub supporting post-setup requirements.