How To Start A Business In Dubai From India

Dubai and India share a long-standing and strong trading relationship. Dubai, which today offers investment opportunities to entrepreneurs from across the globe, also has its doors open to Indian entrepreneurs. If you are looking to start business in Dubai from India, you are on the right track.

With a tax-saving ecosystem, a strong infrastructure, and a pro-business environment, Indian entrepreneurs can thrive in various sectors through a simple business setup process in Dubai. By getting a business license in Dubai, Indian entrepreneurs can build successful brands and expand internationally, catering to affluent clients.

In this guide, we will look at the process of starting a business in Dubai from India, along with the necessary costs and benefits involved.

Trading Relationship Between Dubai and India

UAE and Dubai share a common vision, that of progress and prosperity. The trading relationship between the two nations is as old as gold and has strengthened over the centuries, built on mutual trust and strong leadership.

What began as trade in pearls and dates has today evolved into a vibrant, multi-faceted exchange of goods and services. The UAE has opened its arms to embrace entrepreneurs from India who want to establish their presence there. In fact, India is number one in Dubai with over 73,100 Indian companies registered with Dubai Chamber.

Indian entrepreneurs today are proud to call Dubai the home of their business. The city’s world-class living standards, zero income tax, and geographical proximity to India have made it a preferred choice for thousands of Indian businessmen.

How to Start Business in Dubai for Indian?

Here are the steps to start business in Dubai from India:

Step 1: Decide business activity

There are more than 2,000 business activities that you can pursue in Dubai. You can start a restaurant, a retail shop, a construction company, a travel agency, a tax consultancy, almost anything that comes to mind. Just make sure the one you choose is permitted by the government.

Step 2: Choose business jurisdiction:

Next, you need to decide between free zone, mainland, and offshore. Here is a brief description of each to help you understand better:

Free zone companies:

Free zones are individual economic zones in Dubai. Each free zone has its own business licensing and regulatory authority. They offer 100% foreign business ownership, high tax savings, among other benefits. There are 30+ freezones in Dubai, including IFZA, Dubai Silicon Oasis, DWTC, and Dubai Media City.

Mainland company:

Mainland companies are located in onshore areas outside Free Zones. Such companies are licensed by the DED and can freely trade across the entire UAE and internationally. Additionally, they can directly bid for government contracts and projects.

Offshore company:

An offshore company is registered in Dubai but operates outside the boundaries of the UAE. This structure is suitable for entrepreneurs looking for global market access and international trade, as they cannot operate within the UAE.

The jurisdiction you choose will depend on your business goals and activities intended.

Step 3: Select the legal structure

Next, choose the legal form for your business in Dubai. It can be:

• Sole establishment
• Partnership firm
• Civil company
• Limited liability company
• Private/public joint stock company
• Branch of foreign/GCC company

The structure you choose will decide your tax liabilities, ownership pattern of firm and operational flexibility. The structure you choose will also depend on the type of business license you are seeking and chosen jurisdiction.

Step 4: Register trade name

Next, for your Dubai business, you will need to decide a nice and unique name and get it registered with the concerned authority. While choosing the name, just remember some points:

• It should not be already taken.
• Should not be religiously or morally offensive.
• Should not contain name of any government body.
• Should abide by the other naming rules in UAE.

Step 5: Get the initial approval:

To start business in Dubai from India, you will need to receive initial approval from the DED or the respective freezone authority. Basically, this permission confirms that the UAE government has no objection to your business in Dubai.

Step 6: Get additional permits:

Some businesses need additional approvals for their licenses. For example, healthcare businesses need approval from the Dubai Health Authority. Therefore, you must find out if your business requires any such approvals and obtain them.

Step 7: Secure office space:

Having a space for your business will be your next step. You can rent out a proper office space. Dubai’s advanced infrastructure offers offices equipped with modern facilities. The type you need will depend on your business activities. Once you rent a space, you must also get the tenancy agreement registered on Ejari.

Alternatively, if you plan to start an e-commerce business or a freezone company, you may have the option to operate through a virtual address without investing in a physical office.

Step 8: Prepare the documents:

To start business in Dubai from India, you will need to submit certain documents to the authorities. This includes your passport copy, business plan, trade name registration certificate, approval certificates, bank reference letters, and other documents if required.

Step 9: Apply for the business license:

Finally, you can apply for the business license. You must approach DED in case of mainland businesses or the respective freezone authority. For the license application, you will need to fill in the license form and submit it along with the required documents.

You must also pay the necessary fees to complete the process. The authority will review your application and once approved, your license will be issued.

Step 10: Open a business bank account:

Opening a corporate bank account in Dubai is important, as you cannot use a personal account for business transactions. There are many well-known domestic as well as international banks where Indian entrepreneurs can apply for a business bank account.

Step 11: Get the necessary visas:

As an Indian, to stay and work legally in Dubai, you will need a proper UAE visa first. So, obtain a business visa for yourself. Additionally, if you plan to hire staff, whether from India or other nationalities, you will need to apply for their work permits and employee visas.

Once you get your UAE residence visa, you can also sponsor residency visas for your family members.

Note: Some steps in the process can be completed remotely. However, for procedures such as residency processing, document signing, and bank account opening, you will need to visit Dubai.

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Why to Start Business in Dubai from India?

Indian entrepreneurs looking for serious growth and global reach are considering Dubai for business setup. Here are the benefits of starting a business in Dubai from India:

• Proximity to India: The distance between India and Dubai is minimal. You can visit Dubai frequently, traveling back and forth is not a problem, making business operations easy and efficient.
• Tax savings: In Dubai, there is no personal income tax, and in fact, if your income qualifies, you may be exempt from corporate tax as well.
• Easy business setup: The process to start and run your business in Dubai is simple. Whether it is licensing, incorporation, visa applications, or employee card applications, the procedures have been streamlined and are mostly available through online portals.
• Luxurious lifestyle: Dubai’s lifestyle speaks luxury. With its rich and vibrant culture, growing skyline and lavish way of life, you get to enjoy all of it here.
• Strong community: Thousands of Indian entrepreneurs have already settled in Dubai along with their families, running successful brands. The strong community makes you feel at home.
• Advanced infrastructure: Dubai offers world-class infrastructure including transport, logistics, digital connectivity, and real estate.
• Diverse business opportunities: With over 2,000 business activities to choose from, Indian entrepreneurs can pursue their dream ventures, whether in healthcare, fashion, electronics, education, retail, import-export, or any other sector.
• Free trade agreements (FTAs): The UAE has signed several FTAs with major global markets, including India, giving businesses in Dubai better access to international trade routes and reduced tariffs.

Legal Requirements to Start Business in Dubai for Indians

By far you know how to secure your business license and how to start business in Dubai from India. However, the work does not end here. After you successfully start business in Dubai from India, there are ongoing legal compliances that you must abide by.

Here are the major legal requirements you will need to fulfill to start and run a business in Dubai from India legally as per the local UAE laws:

Trade license:

First things first, you must get the legal permit to do business in Dubai from the government, also known as a trade license. Business licenses in the UAE are of various types. Based on the nature of business activity performed, you can get the most suitable one. The major types include:

• Commercial license: If you want to run a retail store, or maybe an import-export business, then you must seek a commercial license in Dubai.
• Professional license: If your expertise and qualifications enable you to deliver services and you want to make a business out of it in Dubai, then you need a professional license.
• Industrial license: If you want to start business in Dubai from India like a manufacturing or processing firm, then you need an industrial license.

Dubai visa:

A Dubai visa is basically a residency permit that allows foreigners to stay and pursue their business in Dubai. As an Indian citizen, to come to Dubai and stay to do business, you need to get a proper business visa.

You can get an investor visa, golden visa, or other types, but remember each has certain eligibility criteria. For example, a golden visa requires you to invest at least AED 2 million in a commercial/industrial license.

Office space:

Whether or not office space will be legally mandatory depends on the type of business license you have and the jurisdiction selected. For example, in mainland Dubai, an office space is typically required for most business activities.

However, for models like e-commerce and e-trading, you may operate through a virtual address. In freezones, there may be more flexibility and you may opt for a flexi-desk or shared office address.

Local sponsorship:

For foreign nationals starting a business in Dubai mainland, it is required to have a UAE national or a company owned by UAE nationals as their stakeholder, meaning the UAE national holds 51% stake while the foreigner holds 49%.

However, as per recent laws, most activities on the mainland now allow foreigners to start a 100% owned business without a local sponsor. Still, some strategic sectors may require it. In freezones, companies in Dubai can enjoy 100% ownership, which is one of the greatest advantages of establishing there.

Tax compliance:

The UAE is a tax haven, mostly known for its liberal tax policies. Personal income tax is zero. Here are some other important taxes:

• Corporate tax in UAE: Corporate tax is charged at 9%, but only for businesses whose annual taxable income exceeds AED 375,000 (only on the exceeding part). This means if your business earns less than that, you pay no corporate tax. Similarly, in freezones, qualifying businesses that meet criteria can enjoy 0% corporate tax.
• VAT in UAE: The standard rate of VAT in the UAE is 5%, but only those who earn more than AED 375,000 are required to register mandatorily. Those who earn below it may register voluntarily but have no legal obligation.

Labour law compliance:

In Dubai, matters related to employees, their hiring, job contracts, and other related aspects are regulated under the UAE labour law. Therefore, if you plan to hire staff, you must follow the provisions of the law whether related to working conditions, minimum wage requirements, or other matters.

Documents Required to Start Business in Dubai as Indian

Here are the documents needed to start business in Dubai from India:

• Passport copy
• Passport-sized photos
• Business plan
• License application form
• Memorandum of Association (MoA)
• Bank reference letter
• Visa copies, if required
• Trade name registration certificate
• Additional documents as requested by the authorities

As a responsible business in Dubai, it is your duty as an entrepreneur to always stay compliant with tax laws and other legal regulations.

For essential documents like the Memorandum of Association (MoA), attestation from the UAE Embassy in India as well as the Ministry of Foreign Affairs (MoFA) in the UAE is required.

You can entrust us with all your documentation needs at Dubiz Business Setup, and let our experts handle the entire process for you.

Costs of Business Setup in Dubai for Indian Investors

The cost of a business license in Dubai ranges between AED 5,999* to AED 18,999*.

Please note that costs are subject to change and depend highly on your specific business conditions and chosen jurisdiction (freezone, mainland or offshore).

Here are the common cost elements associated with business setup in Dubai:

• License fees
• Office space rental cost
• Visa fees (self, employees and family, as needed)
• Employee work permit charges
• Emirates ID fees
• Approval fees
• Document translation and attestation fees
• Company establishment card charges

For more detailed cost guidance, reach out to our experts at Dubiz Business Setup.

Conclusion

If you are planning to start business in Dubai from India, kudos! It is a smart decision. The strong relationship between the two nations creates a great opportunity for entrepreneurs. Dubai offers a dynamic business environment, strong commercial infrastructure, tax-saving benefits, and a market full of potential.

Whether you want to run a boutique, a salon, a pet shop, a retail outlet, a fitness center, or even a consultancy, there is a wide range of permitted business activities to choose from.

This article covers everything you need to know, not just to get started, but also to stay aware of ongoing compliance requirements. And if you need more guidance, our experts at Dubiz Business Setup are available 24/7 to answer your questions and clear any doubts.

How Dubiz Can Help Indian Entrepreneurs in Dubai?

At Dubiz Business Setup, we take your business dreams very seriously. We know what it takes to make the important decision of moving your business and starting fresh. But believe us, if you have considered Dubai, you have made the right choice.

Here’s how we can help you:

• 8+ years of experience in multiple industries: In our years of experience, we have helped 7000+ businesses of all types belonging to various industries.
• Complete business setup handling: Get all your company formation services under one roof, no need to coordinate with multiple agencies. We handle it all for you.
• Professional team of experts: With a team of over 50 qualified professionals, we bring expertise in UAE trade licensing, banking, taxation, compliance, legal advisory, and marketing.
• Strong local connections: Our established relationships with Dubai government entities and authorities allow us to fast-track approvals and minimize delays.
• Document clearance & legal support: Our experienced documentation team prepares, submits, and attests all the legal paperwork required for a smooth and hassle-free setup.
• Ongoing business support: Setting up is just the beginning. We offer continued support with tax filing, legal compliance, renewals, and more, keeping your business compliant and up-to-date.
• Smooth transition for you and family: We specialize in visa handling. We can assist you get the necessary visas for yourself, your employees and even your dependents.

Call us today!

📞 Call: ‪+971 56 369 5485‬    

💬 WhatsApp: ‪+971563695485‬    

📧 Email: info@dubiz.co

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