How to Set Up a Business in Dubai from India: Step-by-Step Guide

Why Should Indians Consider Setting Up a Business in Dubai?

Many Indian entrepreneurs choose Dubai for the following reasons:

• Tax Benefits: No personal income tax and low corporate tax (9% above AED 375,000 annual profit).

• 100% Foreign Ownership: Available in Free Zones and selected Mainland sectors.

• Proximity to India: Just a 3-4 hour flight away, making travel and trade easier.

• Large Indian Diaspora: Over 3.5 million Indians live and work in the UAE, offering a familiar customer base.

• Global Market Access: Dubai acts as a gateway to GCC, African, and European markets.

Step 1: Decide the Nature of Your Business

The first step is to identify your business activity. Dubai offers licenses for:

• Commercial Activities (import/export, retail, general trading)

• Professional Services (IT services, consultancy, legal, education)

• Industrial Activities (manufacturing, packaging, processing)

• E-commerce Businesses (online trading, dropshipping)

• Freelancing (for individuals offering specialized services)

The type of business activity determines the kind of license you need and the location where you can set up.

Step 2: Choose the Right Jurisdiction

Dubai offers three types of jurisdictions:

a. Free Zone

Ideal for Indian startups and SMEs. Benefits include:

• 100% foreign ownership

• Tax exemptions on import/export

• No requirement to partner with a UAE national

• Fast-track company registration process

Popular Free Zones include:

• IFZA (International Free Zone Authority)

• DMCC (Dubai Multi Commodities Centre)

• Dubai South

• Dubai Internet City

b. Mainland

Allows you to do business across Dubai and the UAE market directly. Suitable for those who want:

• Access to local UAE clients

• Government tenders or contracts

• Physical retail or commercial office presence

Since 2021, many Mainland sectors allow 100% foreign ownership, making it easier for Indian investors to operate without a local partner.

c. Offshore

Best for international trading or holding companies. Offshore businesses are not permitted to trade within the UAE.

Step 3: Finalize the Legal Structure

You can register your Dubai business as:

• Sole Proprietorship

• Limited Liability Company (LLC)

• Free Zone Establishment (FZE)

• Free Zone Company (FZC)

• Branch of an Indian Company

For most Indian entrepreneurs, an LLC in Mainland or a Free Zone Company is the most common and flexible option.

Step 4: Choose a Trade Name

Pick a unique name for your business that:

• Reflects your business activity

• Is not offensive or religious

• Isn’t similar to an existing business name

You can reserve the name through the Department of Economic Development (DED) or respective Free Zone authority.

Step 5: Apply for Initial Approval

You must apply for initial approval from the respective authority (DED for Mainland, or a Free Zone Authority). Required documents typically include:

• Passport copies of all shareholders

• Business plan (for certain activities)

• Visa page copy (if you already have a UAE visa)

• NOC (if needed)

Once you receive initial approval, you can move on to legal documentation.

Step 6: Prepare Legal Documents

Legal paperwork includes:

• Memorandum of Association (MOA) or Articles of Association (AOA)

• Lease Agreement or office space contract

• Application forms provided by the licensing authority

You can sign these documents remotely or through a registered agent in Dubai.

Step 7: Rent Office Space (If Required)

Depending on your license type, you may need to lease a physical office space. Free Zones often offer:

• Flexi-desks (shared spaces)

• Smart offices

• Dedicated offices or warehouses

Mainland companies must have a commercial office with an Ejari (tenancy contract) to obtain a trade license.

Step 8: Obtain Your Trade License

Once the paperwork and approvals are complete, pay the required fees to obtain your trade license. License types include:

• Professional License

• Commercial License

• Industrial License

• E-commerce License

The license cost generally ranges from AED 10,000 to AED 30,000, depending on jurisdiction, activity, and visa quota.

Step 9: Open a Corporate Bank Account

Once you have your license, open a corporate bank account in Dubai. Leading banks include:

• Emirates NBD

• Mashreq Bank

• ADCB

• RAKBANK

• HSBC

You'll need to submit:

• Trade license

• MOA

• Shareholder documents

• Passport and visa copies

Some banks conduct interviews or request business plans.

Step 10: Apply for UAE Residence Visa

You can apply for a UAE residence visa for:

• Yourself (as investor or owner)

• Your employees

• Family members (spouse, children)

Most Free Zones offer 1–6 visa packages. Visa validity is typically 2 years and includes Emirates ID and medical insurance.

Can You Set Up a Business Remotely from India?

Yes! You can set up your Dubai business without visiting the UAE by hiring a licensed business setup consultant. They can handle:

• Document submission

• Name reservation

• License approvals

• Office leasing

• Bank assistance

You may need to courier notarized documents or sign via power of attorney in some cases.

Final Thoughts

Setting up a business in Dubai from India is a smart move for entrepreneurs seeking international expansion, tax benefits, and global exposure. Whether you choose a Free Zone for ease or the Mainland for broader reach, Dubai offers a transparent and streamlined process for Indian business owners.

With the right strategy and expert assistance, you can successfully launch your Dubai venture and tap into one of the most promising business hubs in the world.