There are unmatched business prospects in the Middle East when starting a company in the United Arab Emirates (UAE), an association made up of seven emirates: Abu Dhabi, Dubai, Ajman, Fujairah, Ras Al Khaimah, Sharjah, and Umm Al Quwain. The UAE, which is well-known for its thriving economy, advantageous location, and friendly business environment, attracts company owners and companies looking to increase their footprint in the area. With so many different benefits and legal frameworks to choose from, companies may choose the best location for their ventures among the United Arab Emirates’ diverse economic offerings.
Are you an aspiring entrepreneur in India looking to expand your horizons and explore business opportunities in Dubai? Starting a business in Dubai from India can be a lucrative venture, given the city’s strategic location, thriving economy, and business-friendly environment. In this article, we will provide you with a step-by-step guide on how to start a business in Dubai from India and answer some frequently asked questions related to this exciting venture.
Types of Business Entities in Dubai
When registering a business in Dubai, choosing the right business structure is crucial to ensure smooth operations and compliance with local regulations. Dubai offers various business entity options, each with distinct benefits based on your goals and business type:
Mainland Company
A mainland company allows you to operate anywhere in the UAE and internationally, making it a popular choice for businesses with plans for local expansion. However, it requires a local sponsor—an Emirati national—who owns 51% of the shares. For companies in sectors like retail, consulting, and real estate that wish to interact directly with the UAE market, this configuration is perfect.
Free Zone Company
Since a free zone firm allows for 100% foreign ownership, it is a desirable choice for business owners seeking complete control.
It’s ideal for businesses involved in trading, services, and technology, particularly those focused on export and import. However, it restricts you from operating directly within the UAE mainland unless you partner with a local distributor.
Offshore Company
Offshore companies are designed for international business, asset protection, and tax optimization. They allow 100% foreign ownership but are restricted to operating outside of the UAE. This structure is perfect for businesses seeking to hold assets, conduct international trade, or benefit from privacy and minimal tax liabilities.
How to Start Business in Dubai from India?
The following steps to start a company in Dubai from India includes:
1. Select the Business Activity
Firstly, you need to decide on the type of business activity you wish to pursue, as Dubai offers a wide range of sectors, from trading and manufacturing to technology and consultancy.
2. Select the Right Business Structure
Once you’ve defined your business activity, you must choose the appropriate business structure—whether it’s a mainland company, a free zone entity, or an offshore business. Each structure has its own advantages depending on factors like ownership, scope of operations, and geographical preferences.
3. Reserve a Trade Name
The trade name must align with UAE naming guidelines. Avoid names that:
- Include religious references.
- Use political terms.
- Are offensive or culturally insensitive
Additionally, the trade name needs to be original and unregistered by another company.
4. Obtain initial approvals
The next step is to get preliminary authorization from the appropriate authorities. Based on the type of legal entity you decide to set up, you may need additional approvals from entities like the Dubai Municipality or the Dubai Health Authority.
5. Draft the Memorandum of Association (MOA)
For a mainland company, the MOA defines the company’s ownership and operational guidelines. A local sponsor is usually involved at this stage for mainland companies.
6. Select Office Space
Dubai requires businesses to have a physical office. You can finalize your office space—either through a commercial lease on the mainland or a co-working space in a free zone.
7. Submit Documentation
After securing an office space, you need to submit all required documentation, including passport copies, proof of initial approval from the DED or free zone authority and tenancy contracts to complete the registration process.
8. Obtain a Business License
Depending on your activity, the type of license you need may vary:
- Commercial License: For trading businesses.
- Professional License: For service providers like consultants or freelancers.
- Industrial License: For manufacturing companies.
9. Open a Corporate Bank Account
Choose a bank in Dubai that caters to your business requirements. Emirates NBD, Mashreq Bank, and Abu Dhabi Commercial Bank are popular options.
Documents Required for Registering a Business in Dubai From India
The following documents required for registering a business in Dubai from India are mentioned below:
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- Passport Copies: Copies of each shareholder’s passports and potential managers.
- No Objection Certificate (NOC): A letter of consent from the local sponsor or partner (for Mainland companies).
- Memorandum Of Association: A legal document defining the company’s scope, structure, and operational procedures.
- Tenancy Contract: A lease agreement for your business location, along with the Ejari registration certificate.
- Bank Reference Letter: A letter attesting to your creditworthiness from your bank.
- Approval from Relevant Authorities: Approval from authorities specific to your industry or business activity.
- Trade Name Reservation Certificate: Register your company name with the relevant authorities.
Benefits of Registering a Business in Dubai from India
Dubai is a major international centre for trade, tourism, and innovation. Its modern infrastructure, favourable tax policies, and investor-friendly environment make it a preferred destination for Indian entrepreneurs.
Some key benefits include:
- Tax Benefits: Dubai provides zero corporate tax and no personal income tax.
- Strategic Location: Proximity to Asia, Africa, and Europe makes it a perfect trading hub.
- Ease of Business Setup: The UAE government provides streamlined processes and support for business registration.
- Diverse Economy: From real estate to technology, Dubai offers vast opportunities across sectors.
Cost of Starting a Business in Dubai from India
The cost of starting a business in Dubai can vary depending on factors such as the type of business, location, and legal requirements. On average, entrepreneurs can expect the following costs:
- Trade License Fee: This typically ranges from AED 10,000 to AED 15,000, depending on the business activity and whether you are setting up in a free zone or the mainland.
- Office Space Rent: The cost for office space can range from AED 20,000 to AED 50,000 annually, depending on the size and location of the premises. Free zone businesses often have more affordable options such as co-working spaces.
- Visa Costs: The cost of obtaining a UAE residence visa for the business owner and employees generally falls between AED 3,000 and AED 6,000 per visa.
- Additional Costs: There may be other costs for permits, approvals, document translations, and notary services, depending on the business activity.
While the costs involved can seem significant, Dubai offers a highly favourable business environment with excellent return potential, making it a valuable investment for entrepreneurs looking to expand their businesses internationally.
Conclusion
Starting a business in Dubai from India is a rewarding venture. With tax advantages, a strategic location, and vast opportunities, Dubai offers a promising platform for Indian entrepreneurs. While the process involves multiple steps, having the right guidance can simplify it.
OnDemand International specializes in helping entrepreneurs like you navigate the complexities of business setup in Dubai. From documentation to licensing, our experts ensure a hassle-free experience.
Ready to launch your Dubai dream? Contact us today!
FAQ’s
The minimum investment depends on the kind of company and its location. For example, free zones may have different requirements compared to mainland businesses.
For a mainland business, yes, you need a local sponsor. However, in a free zone or with an offshore company, a local sponsor is not required.
Yes, Indian citizens can own 100% of a company in Dubai’s free zones. Recent changes in the law also allow for 100% foreign ownership in certain sectors on the mainland.
While it is highly recommended to be present during the setup process, it is not always mandatory. Some steps can be completed remotely, especially if you engage a local business setup service.
The timeline can vary based on the kind of company and its requirements. Generally, it could require a few weeks to many months.
