Why Indian Entrepreneurs Are Looking at Dubai

Dubai has emerged as a preferred international business hub for Indian entrepreneurs, offering zero personal income tax, strategic geographic location between Asia and Europe, world-class infrastructure, a business-friendly regulatory environment, and access to the broader Middle East and African markets. The strong Indian diaspora presence and deep economic ties between India and the UAE create a natural bridge for business expansion.

Business Structures Available

Indian entrepreneurs can set up business in Dubai through several structures. Free Zone companies offer 100% foreign ownership, tax benefits, and simplified setup but are restricted to operating within the free zone or internationally. Mainland companies can operate throughout the UAE and are required for businesses that need to trade locally. The requirement for a local sponsor (51% UAE national ownership) for mainland companies has been relaxed for most business activities since the 2020 Commercial Companies Law amendment.

Key Free Zones for Indian Businesses

Popular free zones for Indian entrepreneurs include Dubai Multi Commodities Centre (DMCC) for trading and commodities, Dubai International Financial Centre (DIFC) for financial services, Jebel Ali Free Zone (JAFZA) for manufacturing and logistics, Dubai Silicon Oasis for technology companies, and Dubai Media City and Internet City for media and technology businesses. Each free zone has specific regulations, cost structures, and permitted activities.

Setup Costs and Timeline

The cost of setting up a business in Dubai varies based on the chosen structure, free zone, and business activity. Initial setup costs typically include trade license fees, visa costs, office space rent (physical or virtual), and professional service fees. A basic free zone company can be established for approximately AED 15,000-50,000, while mainland companies may require higher investment.

Regulatory Compliance

Dubai businesses must comply with UAE commercial law, free zone regulations (if applicable), VAT requirements (5% standard rate), Ultimate Beneficial Ownership (UBO) reporting, Economic Substance Regulations, and Anti-Money Laundering (AML) requirements. The introduction of corporate tax (9% on profits exceeding AED 375,000) from June 2023 has added a new compliance dimension that businesses must address.