How to Start a Business in Dubai from India 

Are you an Indian entrepreneur who dreams of setting up a business in a global hub? Now, why is it better to set up a business in Dubai from India? The potential of doing business in Dubai from India is humungous because you get access to the world beyond the tax-free zones in Dubai, not to mention the strategic location and a flourishing economy. Dubai’s millions of Indian expats and bilateral trade, expected to hit $100bn by 2030, make it a draw for Indian startups and investors. Whether you’re looking at starting a company in Dubai, what is the minimum investment in Dubai to start a business, or for free zone company registration in Dubai, this 2025 guide will take you through each step, cost, and how you can do it. Here’s a brief look at how you can make your vision into a reality with a UAE business setup.

Why Dubai is Ideal for Indian Entrepreneurs

Dubai is known as an international business centre, so setting up in Dubai is one of the best options for business. Here’s why it is tailor-made for Indian entrepreneurs:

Economic Advantages of UAE Company Registration

• Tax Environment: No personal income tax and a 9% corporate tax, imposed only on profits exceeding AED 375,000 (INR 84 lakhs).
• 100% Ownership: Free zones such as DMCC and IFZA permit total control without the need for a local sponsor.
• Strategic Location: Dubai is a connection for Asia, Europe and Africa, perfect for global trade and e-commerce.
• Repatriation of Profits: Repatriate all earnings and capital without restrictions.
• Global Infrastructure: State-of-the-art logistics, digital, and ports facilitate company formation in the UAE.

Economically Stable-World Bank’s Doing Business 2025 Report ranked Swaziland 17th in the world for ease of doing business.

Opportunities for Indian Businesses

UAE-India CEPA helps cut tariffs to increase trade, benefitting ITeS, retail and manufacturing among others. You have a built-in market, with 4.5 million Indian expats. For instance, an Indian restaurant or a tech startup can serve this community while targeting the rest of the world. Entrepreneurship is also really easy for Foreigners in Dubai, and you can even now open a business in Dubai online through a government e-service like Basher, allowing a foreign investor to register a company in Dubai within just 15 minutes.

Understanding Dubai’s Business Structures

Picking the appropriate business model is the first step of Dubai company registration. Here are the options:

Mainland Companies

Mainland Companies licensed by the Department of Economic Development (DED) can do business in the UAE and overseas.

Advantages:

• Proximity to domestic markets in the UAE (e.g. retail, hospitality).
• Unlimited visa caps by office size.
• All sectors are open to 100% foreign ownership as of the 2021 reforms.

Drawbacks:

• Requires a brick-and-mortar office (200 sq. ft.).
• Higher setup costs (AED 14,500–30,000).
• Best for: Businesses such as restaurants or consultancies that focus on UAE clients.

Free Zone Companies

Free zone entities will conduct business in chosen zones such as RAKEZ, DMCC or Sharjah Media City (SHAMS), which provides a tax holiday.

Advantages:

• Own 100% and pay no corporate tax on offshore sales.
• Office space options (flexi-desks, virtual offices).
• Fast setup (1–3 days).

Drawbacks:

• Can’t trade directly with retail clients in the UAE without a local partner.
• Visa quotas by package.
• Best for: Tech start-ups, e-commerce, or export-oriented businesses.

Offshore Companies

For international transactions OR for holding any activities or ASSETS, an Offshore company is normally registered in JAFZA or similar Free Zones.

Advantages:

• No office or visa requirements.
• Full VAT and audit exemptions.
• High confidentiality.

Drawbacks:

• Tied up in the UAE market.
• No residency visas.
• Ideal for: Indian investors with global portfolios.

Step by step Process for Company registration in Dubai from India

So here’s an A-Z guide to company registration in Dubai for Indians:

Step 1: Determine the Nature of Your Business

k from more than 2,000 types of business including:

• Commercial: Trading, retail, import/export.
• Professional: IT services, consulting, education.
• Industrial: Manufacturing, logistics.
• Tourism: Travel agencies, hospitality.

Step 2: Select the Correct Legal Structure

Choose a Legal Structure There are multiple legal structures to choose from, depending on your business’ goals:

• Sole Proprietorship: Business with an owner, such as a freelancer.
• Limited Liability Company (LLC): 2–50 members, limited liability, good for partnerships.
• Branch Office : only local service agent needs to be appointed for mainland.
• FZE/FZCO: One or more shareholders in a free zone.

Step 3: Secure a Trade Name

Make sure your trade name is unique and complies with UAE guidelines:

• Religious, obscene or names that are trademarked are to be avoided.
• State the legal structure (LLC, FZE etc).
• Provide 3x alternative names to the DED (On shore)/ Free Zone Authority.
• Approval: 1 – 2 days for approval.
• Make a move search – How to register a trade name in Dubai from India? – Visit the DED, or a free zone (like TBC) website, to check availability and reserve your name.

Step 4: Choose a Jurisdiction & an Office

Select either mainland, free zone or offshore:

• Mainland: Needs a physical office (Business Bay, for instance – AED 20,000-50,000/year).
• Free Zone: Provides flexi-desks (AED 5,000–15,000/year) or virtual offices.
• Offshore: No office needed.

Step 5: Get your business license

Obtain a business licence from the DED (mainland) or the Free Zone Authority. Types include:

• Commercial License: For trading activities.
• Professional License: Includes work such as consulting.
• Industrial License: For manufacturing.
• Tourism License: For travel and tourism.
• Cost: AED 12,500-22,150, depending on the emirate.
• Lead Time: 1–3 days ( free zone), 4-7 days ( on mainland).

6: Get visas and Emirates ID done

Obtain investor or employee visas through GDRFA or ICP Smart Services. Steps include:

• Afterward, obtain an entry permit (AED 1,000–2,000).
• Physical examination and health check (blood test, X-ray all).
• Obtain Emirates ID (AED 370–500).
• UAE Golden Visa: For big money investors (5 – 10 years validity).
• Cost: AED 3,500–7,000 per visa.

Step 7: Set up your business bank account

Open a corporate bank account at banks such as Emirates NBD, Mashreq or ADIB. Requirements:

• Trade license and incorporation certificate.
• MOA and AOA.
• Scans of passports, as well as proof of address.
• Business plan or contracts (optional).

Step 8: Verify that the Tax and Compliance settings are correct

Follow UAE corporate tax (9% on profits over AED 375,000) and VAT (5% on local sales above AED 375,000). VAT on international exported sales is zero-rated for free zone companies. Key compliance:

• Economic Substance Test (EST): Establish significant business activity.
• AML: Upload the KYC docs.
• Annual audit (compulsory for mainland and certain free zones).
• Contextual Bridge:One of the biggest reasons why you need to calculate your cost is that it’s important when it comes to your Dubai business setup. Now let’s look at the costs.

Cost Breakdown for Dubai Business Setup

The Dubai company registration fees depend on your chosen structure and jurisdiction. Here’s an approximate cost detailed look:

Mainland vs. Free Zone vs. Offshore Costs

Mainland:

• License: AED 14,500–30,000 (₹3.3–6.8 lakhs).
• Office Lease: AED 20,000–100,000/year (₹4.5–22.7 lakhs).
• Local Service Agent (if required): AED 10,000–15,000/year.

Free Zone:

• License: AED 12,500–19,999 (₹2.85–4.5 lakhs).
• Flexi-Desk/Virtual Office: AED 5,000–15,000/year.
• Examples: RAKEZ (AED 11,990, 1 lifetime visa), DMCC (AED 20,000+).

Offshore:

• Setup: AED 8,000–12,000 (₹1.8–2.7 lakhs).
• No office or visa costs.

Hidden Costs and Budget Tips

• Visa Fees: AED 3,500–7,000 per visa.
• Emirates ID: AED 370–500 per person.
• Attestation: AED 2,000–5,000 for Indian documents.
• Renewals: AED 8,000–15,000/year.

Essential Documents for Company Registration

To complete business registration in Dubai, prepare these documents:

• Passport copies (valid 6+ months) for shareholders and managers.
• Passport-sized photos (3–5 per person).
• Business plan (required for some free zones).
• Memorandum of Association (MOA) and Articles of Association (AOA), notarized.
• Bank reference letter for each shareholder.
• No Objection Certificate (NOC) from the sponsor (mainland, if applicable).
• Lease agreement or Ejari (mainland only).

India-Specific Attestation Process

Indian documents must be attested to meet UAE requirements:

1. Notarize documents (e.g., MOA, passport copies) at a local notary in India.
2. Attest at the state Home Department.
3. Submit to the Indian Ministry of External Affairs for apostille.
4. Final attestation at the UAE Embassy in India.

Cost: AED 2,000–5,000 per document. Time: 5–10 days.

Overcoming Challenges for Indian Entrepreneurs

Indian entrepreneurs face unique hurdles in UAE business setup. Here’s how to address them:

Navigating Document Attestation

• Challenge: Delays in attesting Indian documents can stall registration.
• Solution: Partner with a business setup consultant in Dubai to coordinate with Indian authorities and the UAE Embassy. Plan for 5–10 days to complete attestation.

Managing Indian Tax Compliance

• Challenge: Indian tax authorities may tax Dubai company profits if controlled from India with turnover above ₹50 crores.
• Solution: Structure your company with directors outside India to qualify as a non-resident entity. File ITR forms to disclose foreign shareholding and report to the RBI under the Liberalised Investment Scheme or Overseas Direct Investment Scheme.

Selecting the Best Free Zone

Challenge: Choosing from 30+ free zones can be overwhelming.

Solution: Match your industry to a free zone:

• Tech: Dubai Internet City or DTEC.
• Trading: DMCC or JAFZA.
• Media/Consulting: Sharjah Media City (SHAMS).
• E-commerce: RAKEZ or Ajman Free Zone.

Starting a Business in Dubai on a Budget

Curious about how to start a business in Dubai with no money? While some investment is necessary, here are cost-saving strategies:

Affordable Free Zone Options

• Sharjah Freezone: AED 5,750 (₹1.3 lakhs) includes a flexi-desk.
• Ajman Free Zone: Starts at AED 7,000, ideal for small businesses.
• RAKEZ: AED 11,990 with a lifetime visa, great for startups.

Virtual Office and Low-Cost Strategies

Free zones like IFZA and SHAMS offer virtual offices for AED 5,000–10,000/year, eliminating physical office costs. Dubai company setup packages bundle licenses, visas, and offices to save money.

Top Free Zones for Indian Startups

Selecting the right free zone is key for company formation in Dubai. Here are top picks for Indian startups:

• Dubai Multi Commodities Centre (DMCC): Best for trading, commodities, and e-commerce. Offers 100% ownership and access to global markets.
• Dubai Internet City: Ideal for tech startups with co-working spaces and networking events.
• Sharjah Media City (SHAMS): Affordable for media, consulting, and small businesses (AED 5,750).
• RAKEZ: Cost-effective for e-commerce and logistics (AED 11,990, lifetime visa).
• Ajman Free Zone: Budget-friendly for SMEs and freelancers.

Indian Tax Implications for Dubai Companies

Understanding tax obligations in India is crucial for business setup in UAE:

Understanding Residency and Taxation Rules

• Turnover Below ₹50 Crores: If controlled from India, the company is non-resident, and only directors’ income is taxable in India.
• Turnover Above ₹50 Crores: The company may be deemed resident, subjecting profits to Indian tax.
• Solution: Appoint directors residing outside India or structure the company as an offshore entity to avoid Indian tax liability.

RBI Compliance: Report foreign investments to the Reserve Bank of India via Form ODI or Liberalised Remittance Scheme.

Frequently Asked Questions

Q1: Can I complete online company registration in Dubai from India?

Yes, free zones like IFZA and SHAMS allow remote registration via online portals. A consultant can manage the process in 1–3 days.

Q2: What is the cost of a professional license in Dubai?

A professional license costs AED 12,500–20,000 in free zones, plus AED 5,000–15,000 for a flexi-desk or virtual office.

Q3: How long does the Dubai company registration process take?

Free zone setups take 1–3 days, mainland setups 4–7 days, and offshore setups 2–5 days, excluding attestation.

Q4: Which free zone is best for Indian e-commerce businesses?

RAKEZ and DMCC are top choices for their logistics support and tax exemptions on international sales.

Q5: What are the challenges of starting a business in Dubai as a foreigner?

Challenges include document attestation, understanding UAE regulations, and choosing a jurisdiction. PRO services simplify these steps.

Conclusion: Start Your Dubai Business Journey Now

Launching a business in Dubai from India is a game-changer for Indian entrepreneurs. With 100% foreign ownership, tax-free zones, and a vibrant Indian expat market, Dubai offers unmatched growth potential. Follow the Dubai company registration process—from choosing a business activity to opening a corporate bank account and leverage PRO services to navigate attestation and compliance. Whether you opt for a mainland company, free zone company, or offshore setup, Dubai’s investor-friendly policies ensure success. Ready to take the leap? Connect with a business setup consultant in Dubai to make your global business dream a reality in 2025.