Indian investors and entrepreneurs eyeing business registration in Dubai can now reap multiple advantages. Learn about the process and benefits of registering a company in Dubai from India, where local shareholding UAE partners are not required for mainland business setup, thanks to recent business-friendly government reforms.
Moreover, the UAE government has introduced various business-friendly reforms to encourage foreign investment and entrepreneurship. This means you can enjoy a smooth and hassle-free registration process.
If you’re looking for a low-cost business setup in the UAE without compromising on quality services, consider consulting with experts like Company Setup consultants in Dubai. They can guide you through the entire process and help you set up your company efficiently.
Now, you might be wondering whether it’s possible for an Indian to open a company in the UAE. The answer is yes! The UAE welcomes foreign investors from all over the world, including India, to establish businesses and contribute to its thriving economy.
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Can I Start a Business in Dubai from India?
Absolutely! You can start a business in Dubai even if you are in India. The process of setting up a company in Dubai is quite simple. All you need is the name of your business and the passports and photos of the directors. No extra paperwork is necessary for the registration.
Surprisingly, you don’t even need two people to register the company; one person can handle it all. The entire setup process takes around two to three weeks and can be done remotely from anywhere in the world.
The only time you’ll need to travel to the UAE is if you want to open a bank account in a physical bank with branches. Other than that, you can get everything else done without leaving your location in India. So, take advantage of the straightforward process and start your Dubai business venture hassle-free!
Steps to Register a Company in Dubai From India
Embark on the journey to register your company in Dubai from India with this comprehensive guide:
- Define Your Business Activities:
- Identify your organization’s daily operations and list activities requiring approvals or certificates.
- Choose between free zone or mainland setup based on your business model and preferences.
- Register a Distinct Trading Name:
- Secure a unique trade name reflecting your company’s nature and enhancing its industry significance.
- Adhere to naming conventions in the UAE, avoiding offensive language and terms that may offend religious sentiments.
- Select the Business Jurisdiction:
- The chosen business location impacts exposure to diverse economies, infrastructure, and regulatory environments.
- Finalize the location post obtaining the Ejari or tenancy contract.
- Draft the LSA/MoA:
- If registering on the mainland, collaborate with a local service agent (LSA) for licensing assistance without shareholding intervention.
- Establish the Memorandum of Association (MoA) aligning with your company’s structure.
- Apply for a Business License:
- Mainland businesses apply to the Department of Economic Development (DED), while free zone businesses follow separate procedures.
- Seek external approvals from governing bodies post-business license acquisition.
- Apply for a Business Bank Account:
- Complete necessary paperwork and open a business bank account for your company.
- Choose a bank aligning with your company’s needs, providing benefits for cost optimization.
What Is the Cost of Company Registration in Dubai?
Determining the cost of company registration in the UAE is multifaceted, influenced by factors such as company location, license type, visa needs, office size, and more. While there is no fixed figure, Indian entrepreneurs can initiate the process of registering their company in Dubai from India with costs starting as low as AED 20,000.
Documents Required to Register a Company in Dubai From India
To register a company in Dubai from India, ensure you have the following documents:
- Passport-size photos of the company registration applicant.
- Completed application form.
- Copy of the Local Service Agent’s (LSA) Emirati ID.
- Notarized and attested LSA and Memorandum of Association (MoA) documents.
- Passport copies of all legal participants involved.
- External approvals, if required.
- Tourist visa of the company registration applicant.
- Ejari number from the rental space agreement or Business Center sustainability contract.
Advantages of Register an Indian Company in Dubai
Discover the advantages of registering your business in Dubai from India:
- Low Taxation Policies:
- Enjoy the benefit of minimal personal and corporate taxes on business profits in Dubai.
- Dubai’s low taxation policies maximize returns on your venture, offering a favorable environment for business growth.
- Notably, Dubai’s VAT rates rank among the lowest globally.
- Population Growth:
- Capitalize on Dubai’s thriving economy and expanding population, creating a dynamic market for businesses.
- The city’s status as a magnet for foreign and Indian investors ensures a steady influx of potential clients for your business.
- Investment Security:
- RERA, DED, and DLD uphold fair, supportive, and unbiased laws, fostering a secure investment environment for new investors.
- Transparent regulations eliminate concerns about hidden costs or charges, providing peace of mind when setting up your company in the Emirates.
- Hassle-Free Visa Management:
- Streamline the visa process for family members, shareholders, and employees with a straightforward application to the relevant government department.
- Business license approval often includes the issuance of mandatory visas, simplifying the overall visa management process.
Freezone versus Mainland Tax Rates in the UAE
Choosing between Freezone and Mainland for company setup in the UAE often comes down to tax rates, especially for many Indian entrepreneurs, particularly those running online businesses.
In the past, the entire United Arab Emirates had a tax-free policy, with no income tax, VAT/GST, or any other taxes. However, from June 2023, Mainland entities making profits over 3,75,000 UAE Dirhams will be subjected to a 9% Corporate Tax. This tax applies only to Mainland-based companies, while Freezone-based entities remain exempt.
In addition to the 9% Corporate Tax, mainland companies selling goods in the UAE are also subject to a 5% VAT rate on most items. If any company in the Free Zone sells to the Mainland, they are also subject to the 5% VAT.
When opening a bank account in the UAE, Internet Banking is activated, allowing users to manage their accounts from anywhere in the world, eliminating the need to stay physically present in the United Arab Emirates.
So, for Indian entrepreneurs looking to set up their companies in Dubai, considering the tax implications of Mainland versus Freezone can significantly influence their decision-making process.
Tax Implications for Indians Earning Money in Free Zones
Whether the Indian government taxes money made in a free zone by Indians depends on whether the foreign company is being controlled and managed from India or not. If the company’s directors are located inside India, the Indian government may impose taxes on the income earned by that foreign company. However, if the company’s directors are located outside India, the Indian government may not impose taxes on the income earned by the company. The tax liability is determined based on the company’s management and control location.
Tax Implications for Dubai Company Directors Living Outside India
If the directors of the Dubai company live outside India, neither the Indian government nor the directors themselves may be taxed on the company’s income. In this situation, both the company and its directors would be considered as Non-Resident Indians (NRIs).
How much does it Cost to Register a Company in Dubai?
The cost of registering a company in Dubai can vary depending on factors like the size, type, and location of the business. Additionally, the required legal approvals can significantly influence the overall expenses.
For the most budget-friendly options and expert guidance, you can rely on Company Setup Consultants advisors. In Dubai’s free zones, the cost of registering a business typically starts at 17,900 AED. Alternatively, for a mainland business setup, the cost usually begins at 18,500 AED. These prices can serve as a starting point, but it’s essential to consider your specific business needs to get an accurate estimate.
Can you own 100% of a company in Dubai?
Absolutely! Any foreign national can establish a company in Dubai’s mainland with 100% foreign ownership. This means you have the freedom to fully own and control your business without the need for a local partner or sponsor.
Conclusion:
Congratulations on your wise decision to register your company in Dubai from India! Dubai’s thriving business sector offers excellent opportunities for growth and success.
To make the process smooth and hassle-free, Business Setup Consultants, the experienced business setup consultants in Dubai, can help you find the perfect location for your dream company and handle all the necessary paperwork.
Our dedicated team of business consultants and advisors is here to support you throughout the registration process. Don’t hesitate to reach out to us and get started right away! Contact us today to begin your exciting journey of establishing an Indian company in Dubai.
