Software and Technology Company Formation.
Which of Dubai, the UK and Northern Cyprus (TRNC) suits a software activity is covered in four steps: the four criteria that decide, a comparison of the three countries, the detail of each country, and the role of Ortac Global in the process.
Software Formation Decided by Four Criteria.
As the product is digital, warehouse and stock fall outside the assessment; four headings call for a decision at the formation stage.
Collection channelSoftware can be sold to any country; the infrastructure that handles card collection looks to the country where the company is formed.
Recurring card collection is set up in practice through Stripe and PayPal; both work with a Dubai or UK company and do not work with a Northern Cyprus company. For sales through an app store, the store collects payment and transfers the amount as a periodic payout; what matters then is which account in which country the store payout is made to. In most cases, this factor decides the company's address: sales can come from any country, but collection passes through a single channel.
Country of the teamIf developers are in different countries, the company's location affects the visa quota, payroll and contract structure.
In Dubai, the employee visa quota depends on the licence package; if the team will move to Dubai, the quota is chosen at the formation stage. In the UK, if a salary will be paid to a director, PAYE payroll registration is required. In all three countries, where the company is managed from can be decisive for tax; the distribution of the team is therefore assessed before the formation file is opened.
Activity classThe product or service sold is recorded in the formation file under a class; later tax, licensing and regulatory processes rest on this class.
In Dubai, the activity code directly determines the trade licence class; once your activity is communicated to us, we carry out the matching. In the UK, the activity description is converted into a SIC code and defined in the registration file. In Northern Cyprus, an additional permit or licence may be required depending on the subject of the activity. A wrong choice may require additional procedures and, in some cases, a new formation; the class is therefore determined correctly at the formation stage in all three countries.
Code and brand ownershipWhich legal entity will own the software and the brand is determined at the formation stage.
If the product belongs to one person and the revenue to another company, the contract and invoice chain breaks: the selling party cannot show that it owns the product it sells. At formation, which company is the licensor and which is the selling party is determined from the outset. A later transfer is a separate transaction, a separate cost and, in some cases, a separate tax matter.
The Same Four Headings, Three Countries, Three Different Outcomes.
A summary first: the country matching your situation is indicated below. A comparison of the three countries follows.
Card and subscription collection is your main income
Stripe and PayPal work with a company in these two countries; they do not work with a Northern Cyprus company.
You want to bring your team with you
The only country where a residence visa application can be made through the company; the quota depends on the licence package.
You will not be able to travel at all
No step of formation requires a signature in person. In Dubai, the visa and biometrics, and in Northern Cyprus, document signing and the bank account, are completed in person.
Your team is in Turkey and you need a Turkish lira account
A corporate account at a Northern Cyprus bank is opened in Turkish lira and foreign currency; corporation tax and income tax do not apply to activity outside Northern Cyprus.
| Criterion | Dubai | United Kingdom | Northern Cyprus |
|---|---|---|---|
| CollectionCollection by card and through platforms |
|
|
|
| Structure and formation | Free zone or mainlandFree zone trade licence, with a commercial or technology activity class; a later change requires a new formation. | Limited · Companies HouseNo travel is required at any step of formation; the activity is converted into a SIC code and defined in the registration file. | Free Port · limitedOne visit to Northern Cyprus is required for signatures and the bank account; an additional permit or licence may be required depending on the subject of the activity. |
| Residence / visa for the team | Residence visa through the company | Company formation does not provide residence | Company formation does not provide residence |
| Tax framework | 0% up to AED 375,000, 9% aboveOn net profit; free zone companies included. | 19-25%, depending on profit19% up to £50,000, 25% above £250,000; a gradual transition in between. | 0% on business outside Northern CyprusFor a Free Port company; sales to companies within the Free Port are also exempt. Normal tax rules apply to sales to a local company within Northern Cyprus. |
| Setting up a software company in Dubai | Setting up a software company in the UK | Setting up a software company in Northern Cyprus |
The collection row is based on the payment infrastructure table; the provider itself is the body that opens the channel, and approval is not guaranteed. The tax cells are a general framework, not a personal opinion.
Formation cost, typical timeline, activity description and bank channels are not included in this table: as they do not depend on the industry, they are presented in the full comparison of the three countries. Compare the Three Countries by Criteria
If your situation does not fully match these four options, you can send us your product, your team and your collection channel; the suitable country is assessed together.
Request an AssessmentCollection open, visas available
Setting up a software company in Dubai
Software is one of the common free zone activities: if your customers are outside the UAE, you can operate with a free zone licence, use all collection channels and obtain residence visas for the team.
- What matters is who you sell to: a free zone if your customers are outside the UAE, mainland if you sell to companies inside the UAE.
- A Stripe and PayPal connection can be set up for a SaaS or agency profile.
- Partner and employee visas are obtained during the process; the quota depends on the licence package obtained.
Restrictions to note for Dubai2 items
- Presence in the UAE is required for the visa and biometrics; this step cannot be carried out by proxy.
- Formation and annual renewal costs are higher than in the UK. The second-year renewal should be planned from the start.
Remote formation from start to finish
Setting up a software company in the UK
It is the only option that can be formed remotely, and the market where contract and invoicing practice in software and consulting is most established. On the other hand, profit is subject to corporation tax and the banking process is the most demanding of the three countries.
- The Ltd structure is widely accepted by customers and platforms in Europe.
- It is the market where invoicing and contract practice in software and consulting is most established.
- If you are unable to travel, the whole formation can be completed remotely.
Restrictions to note for United Kingdom2 items
- Company formation does not provide a right of residence. Immigration is a separate process, and none of the steps on this page forms part of it.
- The approval rate at traditional banks is low for non-resident partners; in practice, we start with a payment institution account.
No Stripe or PayPal, a local virtual POS available
Setting up a software company in Northern Cyprus
A company selling software and services to customers abroad is formed as a Free Port company. Stripe and PayPal cannot be used; card collection is made through the local bank's virtual POS.
- If your operations are based in Turkey, the time zone is the same and the journey takes a day.
- A corporate account at a Northern Cyprus bank is opened in Turkish lira and foreign currency.
- Contract, invoicing and accounting practices are similar to those in Turkey, so the compliance process is short.
Restrictions to note for Northern Cyprus3 items
- Stripe and PayPal do not work with a Northern Cyprus company; if subscription and global card collection is your main channel, Dubai or the UK should be considered.
- One visit to Northern Cyprus is required for document signing and the bank account.
- It is not an EU member and is not the same country as Southern Cyprus. Some foreign platforms do not accept a Northern Cyprus company.
Our Services for Software Companies
The four headings above decide the matter; the services below cover putting that decision into effect. All of them are services we currently provide.
- Company formationOnce your activity is communicated to us, we determine its equivalent in the formation file: the licence class, the activity description and which legal entity will own the product are settled at the formation stage.
- Accounting and reportingAs subscription revenue recurs every month, the accounting records are also kept monthly: monthly records, periodic filings and annual financial statements are run in the same cycle.
- Banking and payment systemsIn software, collection is the deciding factor. We prepare the corporate account application file and manage the process; whether the card and subscription infrastructure works with your company is assessed before the country is chosen.
- Visa and residenceIf you will bring your developers with you (a residence visa through the company is currently possible only in Dubai), the quota, medical test and identity steps are included in the formation plan.
The scope, timeline and fee of the service vary by country; details are on the relevant country page.
Frequently Asked Questions.
If card and subscription collection is your main income, Dubai or the UK; if you will bring your team with you, Dubai; if you cannot travel, the UK; if the team is in Turkey and collection is by bank transfer, Northern Cyprus may be suitable. The comparison is in the second section of this page.
Yes with a Dubai or UK company, no with a Northern Cyprus company. In the UK, Stripe requires a physical bank account in the same country. The decision to open an account rests with the provider and approval is not guaranteed; we prepare the application file.
The store collects payment and transfers the amount as a periodic payout. For the revenue to arise in the company, the developer account must be in the company's name and the payout must be made to the company account.
The company that makes the sale, or the company that licenses it. If the product belongs to a person and the revenue to the company, the contract and invoice chain breaks. The licensor and the selling party are determined at the formation stage; a later transfer is a separate transaction.
Yes. Dubai is the only country where a residence visa can be obtained through the company. The employee visa quota depends on the licence package obtained and is chosen at the formation stage.
In Dubai, it is mandatory if taxable supplies exceed AED 375,000 in the last 12 months; the rate is 5%. In the UK, the threshold is annual turnover of £90,000; if the company is in practice managed from another country, whether the threshold applies is assessed separately. A Northern Cyprus Free Port company is not a VAT payer.