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Business Setup in Dubai from India | Start Your Company in the UAE

by Shethana Mar 20, 2025 9 MIN READ

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This might sound controversial but this is the fact! Dubai is doing great in terms of business growth, economic trajectory, and overall development as a nation – UAE.

People with vast entrepreneurial mindsets move to Dubai due to the kind of freedom given to execute their ideas and the investors pitching in to mold these businesses. Apart from this, the profit distribution is fair among the founder and the investors. The best part is the business-friendly policies that are offered for business owners, especially the tax policies.

This is the most attractive point when it comes to ‘Business setup in Dubai from India”.
This article covers everything that you need to know on how to execute your dream business in Dubai from India.

Why do Indian Entrepreneurs Choose Dubai for Business?

Dubai is a prime destination for Indian businesspersons who wish to go global. Its biggest strength is its location, which acts as a bridge between Asia, Europe, and Africa, and hence is the perfect choice for international trade and business opportunities.

Tax advantages also contribute largely, with Dubai promising a tax-free business environment with no personal income tax and favorable corporate tax regimes.

The convenience of doing business is another crucial aspect—Dubai offers streamlined company formation procedures, state-of-the-art infrastructure, and proximity to free zones that enable 100% foreign ownership.

Furthermore, the robust India-UAE trade ties boost business confidence. The UAE is among India’s largest trading partners, with a conducive environment for Indian businesses.

All these factors combined make Dubai a preferred location for Indian entrepreneurs looking for growth, access to global markets, and a stable economic climate.

Types of Business Jurisdictions for Small Businesses in Dubai

Mainland Business Setup

Mainland business in Dubai is located outside free zones and offshore jurisdictions and rules should be managed by the Department of Economic Development.

These businesses have the freedom to operate both within the UAE and on an international scale, a minimum office space of 200 sq ft is necessary, and foreign companies can benefit from complete ownership.

Free Zone Business Setup

Free zones in Dubai are specific areas that have unique rules, regulations, and governing bodies. Businesses operating in these zones benefit from complete foreign ownership, but they typically cannot engage directly with the UAE market.

These free zones provide a range of office options, such as virtual desks and flexi-desks, allowing flexibility for companies of all sizes.

Offshore Business Setup

Entrepreneurs aiming to operate beyond the UAE can establish offshore companies registered in one of the free economic zones (FEZs). These companies enjoy the various incentives and benefits provided in the Emirates for international business.

Although they are not permitted to conduct business within the UAE or maintain a physical office, they can utilize their agent’s office as their registered address.

Step-by-Step Process to Set Up a Business in Dubai from India

Step 1: Choose Your Business Activity

Choosing a business activity is crucial before starting a business like defining what your venture will be.

Whether you’re planning to launch a small business in Dubai or UAE, you have the option to select from more than 2,100 business activities spanning industrial, commercial, professional, & tourism sectors.

Dubai provides various business structures, and selecting the right one depends on your industry and business goals.

  • Limited liability company
  • Free zone company
  • Branch of the foreign office
  • Civil company

Step 3: Choose a Trade Name

Choosing a trade name is crucial because your company’s trade name serves as its official identity, so it must attach to specific guidelines in Dubai. It should be Unique, devoid of any offensive or religious references, & must not resemble any existing trade names.

Step 4: Select the Business Location

Every business in Dubai needs a physical location, with choices to lease in either the mainland or a free zone. The free zone offers additional advantages such as tax exemptions, 100% foreign ownership & Straightforward office setup. 

Step 5: Apply for the Trade License

Choose a distinctive trade name that presents your business and complies with Dubai’s naming regulations. It should avoid any offensive language and must be registered with the DED & trademark issues.

Step 6: Secure Office Space or Virtual Office

In Dubai, most businesses need a physical office, and it’s essential to register your tenancy contract with Ejari to ensure legal compliance. 

Step 7: Open a Corporate Bank Account

Open a corporate bank account in the UAE by selecting from a variety of local and international banks, including HSBC, Citibank, Barclays, and others.

Step 8: Obtain Visas and Immigration Permits

If you’re hiring or transferring employees in Dubai, it’s essential to secure work visas (labor cards).

This process includes obtaining an establishment card from the Ministry of Human Resources and Emiratisation (MOHRE), determining your labor quota, and applying for work permits and residence visas, all while ensuring compliance with UAE labor laws.

Step 9: Comply with Taxation and Regulatory Requirements

Ensure tax compliance by registering for corporate tax, obtaining a Tax Registration Number (TRN), filing annual returns, and maintaining accurate records.

Documentation Requirements for Business Registration

  • Personal Documents

To establish a business in Dubai from India, you’ll require personal documentation such as passports, visas, and possibly No objection certificates (NOCs) from current employers.

The passport copies must be clear and valid for under six months from the submission date.

  • Company-Specific Documents

You need company-specific documents for starting a business in the UAE from India, such as a Memorandum of association (MOA) and articles of association (AOA), a copy of an existing trade license/registration certificate (If already in operation).

  • Additional Approvals

Whether on the mainland or in a free zone, may need further approvals from appropriate government agencies depending on the business activity types.

These authorities can include ministries like the Ministry of Health for healthcare or the Ministry of Education for educational services.

Cost Considerations for Setting Up a Business in Dubai from India  

  • Business License Fees
  1. Mainland: AED 12,000 to AED 15,000 (approx. INR 2.7 to 3.3 lakh)
  2. Free Zone: AED 10,000 to AED 25,000 (approx INR 2.2 to 5.5 lakh)
  • Office Space and Rental Costs

Depending on the size of your office. The typical office rent would be AED 43.10 (INR 1,017) and more per square foot per annum. Office rent varies depending on the location and space needed.

  • Additional Expenses
  1. Administrative service fees: Approx AED 3,000 to AED 5,000(7.5lakh-11.8 lakh)
  2. Transportation: AED 300-3,000 Monthly
  3. Initial approval fees: AED 100-AED 300.

Post-Registration Services

Business Registration and Licensing – Registering your chosen trade name & applying for the relevant business license (Commercial, Industrial, or Professional) from the Dubai Department of Economic Development (DED).

Visa and PRO Services – The process of a UAE visa involves applying for an Employee or investor visa through a PRO service, which may also include the application for a long-term residency permit such as the UAE Golden visa, allowing individuals to live & work in the UAE for a long period without a local sponsor. 

Corporate Banking Assistance – When opening a corporate bank account in Dubai, choosing the right bank account for your business is important. You have to choose carefully. To open a bank account, the required documents are company registration documents, shareholders & director details, proof of business address, and financial statements.

  • Local Sponsorship Requirements: Local sponsorship requirements are a key compliance and regulatory factor to consider, although the recent developments have allowed for 100% foreign ownership in most industries and free zones provide more business-friendly environment
  • Regulatory Compliance: Acquiring required licenses, complying with company laws, and meeting local regulation requirements, for example, from the Department of Economic Development(DED)
  • Economic Substance Regulations (ESR): Be aware of the UAE’s ESR, which requires companies engaged in specific “relevant activities” to evidence satisfactory economic presence in the UAE by understanding key income-generating activities, holding sufficient resources, and providing annual notifications and reports.

Business Opportunities for Indian Entrepreneurs in Dubai

  • E-commerce and Online Retail: E-commerce in Dubai is booming, with close to 99% penetration of the internet. The trust by the government towards digital transformation and the consumer need for custom-made products presents a golden chance for online commerce.
  • Import and Export: The Import and export sector of Dubai is a lucrative option, with its strategic positioning and robust logistics support, thereby positioning it perfectly for international trade and business development.
  • Tourism and Hospitality: Dubai continues to be one of the world’s leading tourist hotspots, welcoming millions every year. Business ideas in 2025 are the hospitality and travel sector including luxury hotels, travel companies, and niche tour operations. It can boost appeal and draw greater numbers of travelers by associating with locals.

Benefits of Using Business Setup Consultants

  • Save Time: Establishing a business in Dubai takes many steps, ranging from paperwork to approvals. Consultants speed up the process by taking care of these for you so that you can concentrate on your business activities. 
  • Cost efficiency: Though business setup consultants do charge for their services, they prevent you from making costly errors, incurring legal expenses, and wasting time. Their services, in the long run, save you money and improve the chances of success for your business.
  • Local expertise: Consultants have a well-established network of contracts with legal experts, government representatives, real estate agents, and other parties. This network facilitates the setup process to move faster and may offer useful resources to entrepreneurs.
  • Hassle-free process: Business setup consultants in Dubai can help you set up a business in a hassle-free way. They can help with the legal process, licensing, and bank account setup.

Conclusion

Entrepreneurship in Dubai from India is an intelligent decision for global expansion by entrepreneurs. With favorable policies, tax advantages, and a booming economy, Dubai presents unlimited opportunities. By learning about the setup procedure and consulting professional experts, you can easily overcome challenges and concentrate on business development. Dubai is waiting to host your ideas — it’s time to turn your entrepreneurial vision into a reality.

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