How to Register a Company in UAE from India

If you are an Indian businessman and are thinking about how to register a company in Dubai from India, you are not the only one. The top destination for UAE business setup is Dubai, with its thriving economy and tax-free zones in addition to its location. And with more than 15,000 Indian businesses signing up as new members of the Dubai Chamber of Commerce in 2024, and bilateral trade volumes between India and the UAE reaching $85 billion in 2022, the emirate offers unprecedented potential. Whether you are launching a tech startup or an e-commerce venture, setting up your company in Dubai is easy if you have the right guidance. This guide brings to you all the steps, fees and requirements needed for you to remotely set up your Dubai business, including articles such as those on how to start a mainland company in Dubai from India and the minimum investment to start a business in Dubai!

Why Choose Dubai for Business Setup?

The reason for the attractiveness of company formation in Dubai is also due to its business environment and global connectivity. Here’s why Indian entrepreneurs are heading to the emirate:

Benefits of UAE Company Registration for Indians

• 100% Foreign Ownership: Free zones like DMCC and IFZA enable full ownership without a local sponsor.
• Tax Benefits: No personal income tax and 9% tax for profits over AED 375,000 ($102,000/ ₹69 lakhs) for corporate.
• Global Access: Situated between Asia, Europe and Africa, Dubai provided access to world markets for the continuing expansion of commerce.
• Repatriation of Profits: Bring your profits and capital (up to 100%) underlying the operations of the WFOE back to India without any limitation.
• Strong Infrastructure: E-commerce and tech start-ups are backed by world-class ports, airports and digital infrastructure.
• Big Expat Population: The 4.5+ million Indian population in the UAE itself is the audience for your business setup in the UAE.

Indian-Specific Advantages

The UAE-India CEPA (Comprehensive Economic Partnership Agreement) will remove trade impediments, helping in increasing opportunities. India-UAE trade targets $100 billion by 2030, and so, Indian companies in tech, retail, manufacturing and other disciplines are in the pink of health. The presence of an Indian expat community provides a familiar base of customers, which is an added factor to start a business in Dubai for foreigners.

Types of Business Structures in Dubai

The right business type is a must when it comes to company registration in Dubai. Here are the main options:

Mainland Company

It’s one of the things your mainland company is allowed to do anywhere across the UAE and beyond, and you are licensed to do so by the Department of Economic Development (DED). 100% foreign ownership is now being allowed in many sectors with recent reforms.

Best for: Retail or restaurant, or businesses serving local UAE clients.

Key Features:

• Unlimited visa quotas.
• The ability to trade both locally and internationally.
• Needs a physical office (at least 200 sq. ft.).
• Example: A consulting service for clients in the UAE.

Free Zone Company

A free zone company is set up in designated areas such as DMCC, IFZA, or RAKEZ, providing tax-free incentives and 100% company ownership.

Best for: Tech start-ups, e-commerce and export businesses.

Key Features:

• No corporate taxation or VAT on foreign sales.
• Virtual or flexi-desk office options.
• Restricted to free zone trading or export if not in partnership with a local distributor.
• Example: An Indian tech start-up selling software all over the world.

Offshore Company

An offshore company is best for doing business internationally or holding assets outside the UAE in jurisdictions such as JAFZA.

Best for: Holding companies or investors wary of being identified.

Key Features:

• Nothing physical to take with you, no visa eligibility.
• Exempt from VAT and audits.
• Not able to function within the UAE market.
• Case study: Indian investor with worldwide assets.

Mainland vs Free Zone vs Offshore – Mainland for access to the local market, free zones if you’re an export business enjoying government incentives to establish your company, and offshore for asset protection.

How to Register a Company in Dubai from India: Step by Step

Here’s a guide on how to go about the Dubai company registration process remotely from India:

Step 1: Select the Type of Business You Are Engaged In

Describe the nature of your business (e.g., trade, IT services, manufacture). And Dubai has more than 2,000 activities to offer, which are grouped as:

• Commercial: Import/export, retail.
• Professional: Consulting, IT, education.
• Industrial: Manufacturing, logistics.
• Tourism: Travel agencies, hotels.

Tip: Consult a business setup consultant in Dubai to align your activity with UAE regulations.

Step 2: Choose the Type of Business to Form

Decide whether to operate from the mainland, free zone or offshore, as per your objectives. For example:

• Sole Proprietorship: Best for freelancers (ownership is a single person, personal liability).
• LLC: Appropriate for companies that have several owners and are not publically traded (2–50 shareholders, limited liability).
• Branch Office: Representative to undertake the activities of the Indian company and can carry on business from India for representing the parent company.

Free zones like IFZA are ideal for low-cost setups with tax exemptions.

Step 3: Register Your Business Name

Choose an innovative trade name that fits in with UAE regulations:

• No offensive or religious terms.
• Cannot be the same as an existing trade mark.
• Please add your legal form of structure (e.g. LLC, FZE).
• Either with the DED (mainland) or the Free Zone authority.

Submit three name options and get approval within 1–2 days.

Step 4: Select a Location for Your Business

Where you are, business-structure-wise, matters:

• Mainland: Office space mandatory (e.g., Business Bay).
• Free Zone: Provides flexi-desks or virtual offices (e.g. RAKEZ).
• Offshore: No physical office needed.

Step 5: Get Licensed as a Business

Apply for a business license with DED (mainland) or the Free Zone Authority. Types include:

• Commercial: For business and shops.
• Professional License: such as consulting.
• Industrial License: For manufacturing.
• Tourism License: For travel-related businesses.
• Turnaround: Free zone licenses issued in 1–3 days, mainland licenses in 4–7 days.

Processing Time: Free zone licenses are issued in 1–3 days, mainland licenses take 4–7 days.

Step 6:  Obtain Visas and Emirates ID

Get UAE golden visa/ investor/ employee visas from the General Directorate of Residency and Foreigners Affairs Office (GDRFA). Steps include:

• Entry permit application.
• Medical test (blood test, X-ray).
• Application for an Emirates ID (ICP) card.
• Cost: AED 3,500–7,000 per visa.

Step 7: Setting up a Corporate Bank Account

Open a company bank account with service providers such as Emirates NBD, Mashreq Bank and First Abu Dhabi Bank (FAB). Requirements:

• Trade license.
• Memorandum of Association (MOA) and Articles of Association (AOA).
• Passport copies of shareholders.
• Evidence of business (e.g. contracts).

Minimum Deposit: A minimum of AED 50,000–500,000, depending on the bank.

Step 8: Accounting and Compliance Establishment

Abide by UAE’s corporate tax (9% on profit over AED 375,000) and VAT (5% for things sold locally, but mandatory if turnover exceeds AED 375,000). International sales are VAT-exempt for free zone companies. Outsource to an accounting agency to handle the following:

• This includes financial audits (obligatory for mainland and some free zones).
• Economic Substance Regulations (ESR) compliance.
• Anti-Money Laundering (AML), as well as Know Your Customer (KYC).

Costs of Dubai Company Registration

The Dubai company registration fees vary by structure and location. Here’s a Approximate cost breakdown:

Mainland vs. Free Zone Costs

Mainland:

• License Fees: AED 14,500–22,150 (₹3.3–5 lakhs).
• Office Lease: AED 20,000–50,000/year (₹4.5–11.4 lakhs).
• Sponsorship Fees (if applicable): AED 10,000/year.

Free Zone:

• License Fees: AED 12,500–19,999 (₹2.85–4.5 lakhs).
• Flexi-Desk/Virtual Office: AED 5,000–15,000/year.
• Packages: Dubai company setup packages like RAKEZ (AED 11,990 with 1 lifetime visa) or Sharjah Freezone (AED 5,750).

Offshore:

AED 8,000–12,000 (₹1.8–2.7 lakhs), no office required.

Additional Fees

• Visa Costs: AED 3,500–7,000 per visa.
• Emirates ID: AED 370–500.
• Bank Account Setup: Free or up to AED 2,000.
• Annual Renewals: AED 8,000–15,000.

Free zone setups start at AED 12,500 (₹2.85 lakhs), with no minimum capital requirement.

Documents Required for Company Registration

To complete business registration in Dubai, gather these documents:

• Passport copies (valid for 6+ months) of shareholders and managers.
• Visa page copy (if applicable).
• Passport-sized photos.
• Business plan (for some free zones).
• Memorandum of Association (MOA) and Articles of Association (AOA), notarized.
• Bank reference letter.
• No Objection Certificate (NOC) from the sponsor (if applicable).
• Lease agreement or Ejari for mainland setups.

Indian-Specific Document Requirements

• Document Attestation: Notarize and attest documents (e.g., MOA, passport copies) through the Indian Ministry of External Affairs and UAE Embassy in India. This ensures compliance with UAE regulations.
• RBI Compliance: Report foreign investments under the Liberalised Investment Scheme or Overseas Direct Investment Scheme to the Reserve Bank of India (RBI).

Challenges and Solutions for Indian Entrepreneurs

Setting up a business in Dubai from India comes with challenges, but here are solutions:

Document Attestation

• Challenge: Attesting documents in India (e.g., apostille process) can cause delays.
• Solution: Work with a business setup consultant in Dubai to coordinate notarization and attestation through the Indian Ministry of External Affairs and UAE Embassy. Expect 5–10 days for processing.

Tax Compliance in India

• Challenge: Indian tax authorities may tax Dubai company profits if controlled from India with turnover above ₹50 crores.
• Solution: Structure your company with directors residing outside India to qualify as a non-resident entity. File Indian ITR forms to disclose foreign shareholding and comply with RBI regulations.

Choosing the Right Free Zone

• Challenge: With 30+ free zones, selecting the best one for your industry (e.g., tech, e-commerce) is complex.
• Solution: Choose industry-specific free zones:

How to Start a Business in Dubai with No Money

Wondering how to start a business in Dubai with no money? While some capital is needed, low-cost options exist:

Low-Cost Free Zone Options

• Sharjah Freezone: Starts at AED 5,750 (₹1.3 lakhs) with a flexi-desk.
• RAKEZ: AED 11,990 (₹2.7 lakhs) includes a lifetime visa.
• Ajman Free Zone: Affordable for small businesses and startups.

Virtual Office Solutions

Free zones like IFZA and SHAMS offer virtual offices, eliminating the need for a physical space. Costs start at AED 5,000/year, making online company registration in Dubai accessible.

Frequently Asked Questions

Q1: Can I register a company in Dubai from India without visiting the UAE?

Yes, online company registration in Dubai is possible through free zones like IFZA or DMCC. A business setup consultant can handle the process remotely, though a visit may be needed for visa processing.

Q2: What is the cost of opening a real estate brokerage in Dubai?

Costs start at AED 15,000–25,000 for a professional license in a free zone, plus office lease (AED 20,000+) for mainland setups. Additional costs include visas and RERA certification.

Q3: How long does it take to register a company in Dubai from India?

The Dubai company registration process takes 3–10 days, depending on the jurisdiction. Free zones are faster (1–3 days), while mainland setups take 4–7 days.

Q4: What are the best free zones for Indian startups in Dubai?

• DMCC: Ideal for trading and e-commerce.
• Dubai Internet City: Best for tech startups.
• SHAMS: Cost-effective for media and consulting.

Q5: Do I need to pay taxes in India for a Dubai company?

If your company’s turnover is below ₹50 crores and controlled from India, it’s considered non-resident, and only directors’ income is taxable. For turnovers above ₹50 crores, the company may be taxed in India.

Q5: What is the difference between mainland and free zone companies in Dubai?

Mainland companies trade anywhere in the UAE but require a physical office. Free zone companies offer tax exemptions and 100% ownership but are limited to international or free zone trade unless partnered with a local distributor.

Conclusion: Launch Your Dubai Business Today

Registering a company in Dubai from India is a smart move for Indian entrepreneurs seeking tax benefits, global market access, and 100% foreign ownership. By choosing the right business structure (mainland, free zone, or offshore), securing a trade license, and complying with UAE regulations, you can start your UAE business setup in just 3–10 days. Use PRO services to simplify document attestation, visa processing, and corporate bank account setup. Whether you’re launching a tech startup or a trading business, Dubai’s infrastructure and investor-friendly policies make it an ideal hub. Ready to begin? Consult a business setup consultant in Dubai to kickstart your journey.