Yes, any Indian citizen can do business setup in dubai, many business people have been registering their companies in UAE. As Dubai has emerged as a permanent global business hub, attracting entrepreneurs and investors from around the world. Its strategic location, strong infrastructure, and friendly business environment make it a door of opportunities for Indian businesses to set up in Dubai. In this blog, we will be discussing all the points which will help you in establishing a business in Dubai. But before that let’s see the benefits and costing.

What are the benefits for Indians to start a business in Dubai

There are several benefits for Indian entrepreneurs considering setting up a business in Dubai. Here are some key advantages:

  • Strategic Location: Dubai’s geographical location between Asia, Europe, and Africa provides excellent connectivity and access to global markets, making it an ideal gateway for international trade and business.
  • Free Zones: Dubai offers various free zones that provide tax incentives, 100% foreign ownership, repatriation of profits, and exemption from import and export duties. These zones are sector-specific and cater to diverse industries, including technology, finance, media, logistics, and more.
  • Strong Infrastructure: Dubai boasts world-class infrastructure, including modern office spaces, advanced telecommunications, efficient logistics networks, and a well-developed transportation system. This facilitates smooth business operations and connectivity.
  • Taxation Benefits: For all Indian business owners the UAE government offers many taxation benefits as an initiative to promote investment from India. Many liberal policies focus on Indian investors to make it easier for Indians to the dubai business setup. As an Indian business owner, you don’t need to pay any income, personal, or import-export duty tax. Depending on your business activities in Dubai you may have to pay 5 % VAT.
  • Business-Friendly Policies: The Dubai government has implemented several business-friendly policies to attract foreign investment and entrepreneurship. These policies aim to streamline business setup procedures, reduce bureaucracy, and provide a supportive ecosystem for startups and established businesses alike.
  • Access to Skilled Workforce: Dubai is home to a diverse and highly skilled international workforce. Indian entrepreneurs can tap into this talent pool to recruit skilled professionals for their businesses.

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What is the Cost of business setup in dubai for Indians?

The cost of establishing a business in Dubai can be approx AED 12,000 to AED 35,000. To know the exact cost you can see details on the types of business you have considered all the expenses of office space, company formation cost, visa procedure, and business & trade licenses.

What is the process for business setup in dubai?

1. Choosing the type of business entity

Before initiating the dubai business setup procedure, it’s important to understand the most suitable business entity for your venture. Dubai has three options for you, and each of them has its benefits and requirements:

  • Mainland Companies: Mainland companies allow you to operate anywhere in Dubai and beyond. They require a local sponsor or partner who holds the majority share (51%) in the company. Engaging a local sponsor provides valuable insights into the local market and regulations.
  • Free Zone Companies: Free zones are designated areas that offer unique business advantages, such as 100% foreign ownership, exemption from import/export duties, and simplified procedures. Each free zone has its own regulations and licensing requirements.
  • Offshore Companies: Offshore companies are established in designated jurisdictions outside of Dubai. They are commonly used for international business operations, asset protection, and tax optimization. However, offshore companies are not permitted to conduct business within the UAE.

2. Pick up a Business Activity

Once you have chosen the business entity, the next step would be choosing the specific activities your business will engage in like Banking, Cafeteria, grocery store, etc. The Department of Economic Development (DED) or the respective free zone authority offers a comprehensive list of permissible business activities. It is important to pick the appropriate activity to ensure compliance with legal requirements and obtain the necessary licenses.

Best dubai business setup for Indians:-

The following are several options for businesses possibilities that Indians can start in Dubai:-

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  • Dubai offers the greatest potential for import and export business because of its geographical location and international seaports.
  • Many Indian business owners see an opportunity in starting a logistics business in the UAE because they have links with many transport companies all over the world.
  • Taking advantage of Indian software development skills, you can easily set up a software business in UAE, because Indian nationals are popularly known for their expertise in the software industry.
  • Talking about educational ventures, they are also a good option for business for Indians in the United Arab Emirates. You can explore the UAE market and get special training for it as well.
  • Mostly, Indians prefer Pharmaceutical and medical enterprises. Also, you may have noticed most of the Pharmaceutical companies are owned and managed by Indian expats in the UAE.

3. Selecting a Trade Company Name for business in Dubai

Selecting a unique and appropriate company name is a crucial step in the business setup process. The chosen name should comply with the guidelines provided by the DED or the respective free zone authority. It should not violate any existing trademarks, be offensive, or infringe upon religious or cultural sensitivities. Conducting a name availability search is recommended to ensure the desired name is not already registered.

Make a list of three to four names that you want to use as your legal name and give it to the appropriate agency.

After you submit your request, the department will review it and approve each of the qualifying company names. As a result, you are free to select the option that you like best.

Here are some rules you must go by while coming up with a trade name.

  • Not break the law or the country’s public order.
  • Be in line with the needed sort of activity and the company’s or business entity’s legal status.
  • Not including the names of any religions or governing bodies, nor any external organizations’ names or logos.
  • Not already registered.
  • Do not use names that begin with phrases like “Universal,” “Middle East,” or “International,” or have those phrases translated into Arabic.

Read Also This – A Comprehensive Guide to Starting a Transport Business in Dubai

4. Choose a Business Location in Dubai:

When starting a business in Dubai, selecting a site is important. It offers 0% taxation and 100% foreign ownership. Due to our location in the center of Dubai, between the airport and the harbour, you are in a great position to begin trading fast and meet new clients.

Here are a few popular business areas in Dubai:

  • Dubai International Financial Centre (DIFC): Known as a leading financial hub, DIFC offers a business-friendly environment with excellent infrastructure and access to financial institutions.
  • Dubai Silicon Oasis (DSO): DSO is a free zone dedicated to technology and innovation. It provides state-of-the-art facilities, incentives, and a supportive ecosystem for tech-oriented businesses.
  • Jumeirah Lakes Towers (JLT): JLT is a vibrant business and residential community with a range of commercial towers. It offers various business amenities, including retail spaces, restaurants, and easy access to transportation.
  • Business Bay: Located close to Downtown Dubai, Business Bay is a prominent business district with a mix of commercial and residential properties. It provides a central location and convenient access to major highways.
  • Dubai Internet City (DIC): DIC is a free zone focused on the technology and IT sectors. It offers specialized infrastructure, networking opportunities, and various incentives for businesses in these industries.

5. Finding a Local Sponsor or Partner (for mainland companies)

For mainland companies, finding a local sponsor or partner is mandatory, as per UAE law. The local sponsor must hold a majority share (51%) in the company, while the foreign investor(s) can own the remaining shares. The local sponsor provides support in navigating local regulations and acquiring necessary approvals.

6. Preparing Legal Documents for business setup in dubai

Gathering the required legal documents is a crucial step in the business setup process. These documents typically include:

  • Valid passports of shareholders: A copy of the passport for each shareholder is required.
  • Proposed company names: Prepare a list of proposed company names, ensuring they adhere to the guidelines provided by the authorities.
  • Business plan: Create a comprehensive business plan outlining the nature of your business, market analysis, operational details, and financial projections.
  • Lease agreement: Obtain a lease agreement for a physical office space in Dubai. Each free zone has specific office space requirements.
  • Other relevant paperwork: Depending on the business entity and activities, additional documents may be required, such as educational qualifications, experience certificates, or NOC letters.

7. Request initial approval:

The UAE government’s initial permission enables a foreign investor to move forward with establishing a firm in the nation. Although it shows that the government has no issues with the business’s establishment, it does not grant the owner of the company the right to conduct business as usual.

8. Create a Memorandum of Association (MOA) or Local Service Agent Agreement (LSA):

The Memorandum of Association, which is a required document for company formation in the United Arab Emirates, is regarded as the organization’s constitution. It will include information on the shareholders, the board of directors, rules for how the business is to be run, policies, safety and security concerns, and so forth. For the establishment of a business in the UAE, the MOA must be presented with other paperwork. Please take note that companies wholly owned by non-GCC citizens must hire a UAE-based Local Service Agent. A contract with a notary public or the court’s endorsement will name the local service agent.

9. Apply for a Business & Trade License

Once all documentation is complete it will be time to apply for a business license, the type of business license will depend on the business activity you will start in Dubai. Once you have obtained the business license you can initiate business activities legally in Dubai. You can gather the business license from service centers of the economic departments or through their websites.

All companies must get a trade license for operating a business in Dubai. You can get 3 types of Trade licenses from DED:-

  1. Namely
  2. Commercial
  3. Professional and Industrial

Depending on your business activities, you must choose the appropriate license type. Make sure you apply along with all the documentation to the DED or in the case of the free zone the operating authority. Your whole application will be inspected accurately and if it meets the criteria, you can get confirmation mail attaching a payment link. Keep a major focus on the payment and acquire your trade license.

10. Opening a Corporate/ Business bank account

After finishing all the registration and approvals from Dubai concerning authorities, the company mandates to open a corporate/business bank account to send and receive money linking the business affairs both domestically and internationally.

11. Acquire Visa Approval

The last and most important step for business setup in Dubai is to own a visa. You know many free zones permit you as a business owner to get a visa for your employees and their families.

Conclusion-

As an Indian foreign entrepreneur or investor for business setup in dubai, you must be partnered with a team of experts who can help to navigate the different business and trade license types, the costs, and more. If you’d like an exact quotation, contact our team for company formation in Dubai.