Key Highlights

• Indian citizens can now own 100% of UAE companies without a local sponsor.
• Keep 100% of salary/dividends tax-free in the UAE; 0-9% corporate tax depending on profit level.
• Free zones establish companies in 1-5 days; the mainland in 5-10 days. Instant licensing is available for select activities via Basher.
• Over 13,800 Indian companies registered in the first 9 months of 2025.

Dubai sits at the nexus of three continents—four hours from most GCC markets, six hours from Europe, and eight hours from East Africa. 

For Indian founders, this proximity enables same-day client meetings in Riyadh while maintaining a 1.5-hour timezone overlap with India. The UAE-India Comprehensive Economic Partnership Agreement (CEPA), signed in 2022, has fundamentally reshaped trade dynamics, lifting tariffs and driving Dubai–India non-oil trade to around AED 193 billion in 2024, according to Dubai digital economy and trade statistics.​

After all, Indian companies now represent over 30% of Dubai’s innovation-driven startup community, a shift driven not by marketing but by structural alignment. 

If you want to set up your company from India to Dubai, keep reading this article. ​

Disclaimer: This article provides general information about Dubai business setup and does not constitute legal, tax, or professional advice. UAE regulations, fees, and procedures are subject to change without notice and should be independently verified with relevant government authorities at the time of application.

Why Indian Entrepreneurs Are Choosing Dubai in 2026

1. 100% Foreign Ownership Without Local Sponsors

Federal Decree-Law No. 26 of 2020 eliminated the 51% Emirati sponsor requirement, enabling foreigners to own 100% of companies across over 1,000 commercial and industrial activities. 

Strategic sectors including defense, banking, insurance, and telecommunications remain restricted, but most businesses Indian founders launch qualify for full ownership. This shift fundamentally altered risk calculations: you control your cap table, your bank accounts, and your exit strategy.​

2. Tax Structure Built for Growth

The UAE’s corporate tax system is simple and competitive:

• 0% tax on taxable income up to AED 375,000​
• 9% tax on income above AED 375,000​
• 0% personal income tax on salaries, dividends, and capital gains​
• Small Business Relief: Full tax exemption for businesses earning ≤ AED 3 million annually through December 31, 2026​

For bootstrapped Indian startups, this runway matters. Once you exceed the threshold, the 9% rate remains far more efficient than India’s combined GST, income tax, and various cess structures. Free zone companies meeting specific conditions maintain 0% corporate tax on qualifying income regardless of profit levels.​

3. 2026 Regulatory Clarity

Federal Decree-Laws 16 and 17 of 2025, effective January 1, 2026, introduced compliance frameworks that Indian founders will recognize as more predictable than home-country tax ambiguity:​​

• Five-year VAT refund window with clear documentation standards​
• Binding tax directions from Federal Tax Authority creating consistent interpretation​
• Input tax verification requirements placing due diligence on taxpayers​

For founders accustomed to arbitrary tax notices and multi-year litigation, this clarity carries strategic value.

4. Recent CCL Amendments Enable Institutional Capital

The 2025 amendments to the Commercial Companies Law introduced provisions that venture-backed Indian startups specifically requested:​

• Multiple share classes enabling preferred shares for investors
• Drag-along and tag-along rights codified in constitutional documents
• Simplified company conversion between legal forms
• Re-domiciliation allowing seamless movement between emirates

These changes make Dubai viable for Series A-stage Indian startups, not just early-stage bootstrapped founders.

Understand the 2026 Regulatory Landscape for Foreign Investors

1. Full Foreign Ownership: Who Can Own 100%

Federal Decree-Law No. 26 of 2020 permits 100% foreign ownership across over 1,000 commercial and industrial activities. The UAE Cabinet reserves certain sectors as “strategic impact activities” where local partnership or approval remains required.​

Restricted activities include:

• Defense and military manufacturing
• Banking and financial services
• Insurance services
• Currency printing
• Telecommunications infrastructure
• Religious services and fisheries

For everything else—consulting, SaaS, e-commerce, digital agencies, logistics, trading—you can own 100% as an Indian founder. This covers the vast majority of businesses Indian entrepreneurs establish in Dubai.​

2. Corporate Tax Structure

The UAE uses a straightforward two-tier model:​

Small Business Relief exempts resident businesses with revenue ≤ AED 3 million from corporate tax through December 31, 2026. To qualify:​

• Revenue cannot exceed AED 3 million in any tax period from 2024-2026​
• You must be a resident person (natural or juridical)​
• You cannot be part of an MNE group with consolidated revenue ≥ AED 3.15 billion​
• If revenue exceeds AED 3 million in any single year, you permanently lose relief eligibility​

Critical: This is not a deferral—it’s a permanent loss. The Federal Tax Authority actively monitors for artificial business splitting to stay below the threshold.

3. VAT: Rates and 2026 Changes

The standard UAE VAT rate is 5%. Federal Decree-Law No. 16 of 2025 introduced key changes effective January 1, 2026:​

• No self-invoicing required for reverse charge transactions​
• Five-year window to claim VAT refunds or credits from the end of the relevant tax period​​
• Input tax denial for supplies linked to tax evasion schemes​​
• Reverse charge simplification: Supporting documents must be retained per Executive Regulation standards​

VAT registration is mandatory if taxable supplies exceed AED 375,000 annually.​

4. Record-Keeping and Compliance

Seven-year retention of all business records is required. The Federal Tax Authority can extend limitation periods in cases linked to refund requests submitted near deadlines. For Indian founders accustomed to informal accounting, Dubai’s digital monitoring and enforcement require proper systems from day one.​​

Mainland vs Free Zone: Strategic Choice

1. Mainland: Direct UAE Market Access

When it makes sense: You serve UAE-based clients directly, bid on government tenders, or operate retail/physical services.

2. Free Zone: Global Operations, Tax Efficiency

When it makes sense: Your clients are primarily international, you deliver services remotely, or you’re a trader with minimal mainland sales.

Popular free zones for Indian founders:

• DMCC: Commodities, consulting, professional services; 25,000+ companies​
• IFZA: Budget-friendly; lowest startup costs​
• Dubai Internet City/Silicon Oasis: Technology, AI, innovation-focused​

Decide Your Business Activity and Legal Structure

1. Mapping Your Business to Approved Activities

Every UAE business license restricts operations to approved activities. You cannot legally invoice for services outside your licensed scope.

• For the mainland: Search the Dubai Department of Economic Development activity list. Over 3,000 approved activities are organized by license type.​
• For free zones: Each zone maintains its own list. DMCC focuses on commodities and professional services; IFZA covers general commercial activities; Dubai Internet City specializes in technology.​

Three license categories drive cost and approval timeline:​

Up to 10 compatible activities within the same category can be included under one license. For example, “software development” + “IT consulting” + “digital marketing” work together. Mixing fundamentally different categories requires separate licenses.​

2. Choosing Your Legal Structure

Limited Liability Company (LLC) on Mainland

An LLC is the standard mainland structure for Indian entrepreneurs.

• Limited liability protects personal assets
• No minimum capital required for most activities
• 1-50 shareholders permitted
• Requires physical office with registered Ejari contract​

Use this when you’re opening a consulting firm, retail store, or distribution business serving UAE-based clients.

Free Zone Company (FZ-LLC)

When to choose: Your clients are international; you deliver services remotely; you’re a SaaS founder or consultant.

Advantages: Faster setup (1-5 days), lower costs (flexi-desk packages), 0% corporate tax on qualifying income, and 100% foreign ownership.​

Limitation: Cannot trade directly in the UAE mainland market without a distributor or mainland branch.​

Branch of Indian Company

A branch extends your Indian company into the UAE as a single legal entity rather than a separate corporation.​

When it makes sense:

• You have an established Indian company
• You’re executing a specific project or contract
• You want single-entity consolidated accounting

Considerations: The Indian parent is fully liable for branch debts; transfer pricing rules apply for intercompany transactions.​

Also Read: How to Start Export Business from India to Dubai: A Complete JSB Guide

Step-by-Step Process: Setting Up Your Business in Dubai from India (2026)

Phase 1: Pre-Setup Planning from India

Decide Jurisdiction and Business Model

Ask yourself these three questions:

1. Where are your customers?
   • UAE-based → Mainland
   • International → Free zone
   • Both → Dual structure (free zone + mainland branch)
2. What’s your budget?
   • AED 20,000-30,000 → Budget free zones (IFZA, Meydan)​
   • AED 40,000-50,000 → Mid-tier free zones (DMCC)​
   • AED 60,000+ → Premium mainland setup​
3. How many visas do you need?
   • Solo founder → Flexi-desk package works​
   • Small team (2-5 people) → Budget for proportional visa allocations​
   • Larger team → Dedicated office space with proportional quota​

Prepare Documents from India

Personal documents:

• Valid passport (6+ months remaining)
• Passport-size photographs (white background, UAE specifications)
• Proof of address (utility bill, bank statement)

For a branch of an Indian company:

• Board resolution authorizing Dubai branch
• Certificate of Incorporation
• Memorandum and Articles of Association
• Last two years of audited financial statements

Attestation process (five steps): Notary → State Home Department → Ministry of External Affairs → UAE Embassy → Ministry of Foreign Affairs​

Timeline: 5-10 working days​

Cost: AED 1,000-2,500 per document​

Phase 2: Company Formation

Step 1: Reserve Trade Name

Process:

• Log into DED eServices (mainland) or free zone portal
• Search availability
• Submit reservation online​

Naming rules:​

• Must reflect your business activity
• No offensive, political, or religious references
• Cannot closely resemble existing registered companies
• Must include legal form suffix (e.g., “ABC Consulting LLC”)

Cost:

• Standard name: ~AED 620 (mainland)
• Non-Arabic terms: +AED 2,000
• “Group,” “International,” or “Holding”: +AED 1,000-2,500

Timeline: Instant to 1-2 days​

Step 2: Initial Approval and Draft MOA/AOA

For the mainland: Submit initial approval application via Basher platform or DED portal​

Required information:​

• Proposed trade name
• Business activity
• Shareholder details (passport copies, visa status)
• Capital structure

For free zones: Most zones issue approvals faster through integrated online platforms​

Constitutional documents: Your Memorandum and Articles of Association define:

• Company name and objectives
• Shareholder names and ownership percentages
• Share capital
• Management structure and signatory authorities
• Share transfer rules, dividend distributions, and dissolution provisions

When to hire a lawyer: If planning external investment, use a UAE corporate lawyer (AED 5,000-10,000) to include 2025 CCL provisions on share classes, drag-along rights, and tag-along protections. For simple setups, most free zones provide template MOAs.​

Step 3: Secure Office/Flexi-Desk Space

Mainland: You must sign a physical office tenancy contract and register it through the Ejari system.​

Required Ejari documents:​

• Original signed tenancy contract
• Trade license copy or initial approval
• Tenant’s Emirates ID or passport
• Landlord’s passport and property title deed
• DEWA (Dubai Electricity and Water Authority) bill

Ejari cost: AED 170-220 (varies by registration channel)

Office cost ranges:

• Small office (15-20 sqm): AED 15,000-30,000/year​
• Shared office/coworking: AED 10,000-20,000/year​
• Premium locations: AED 40,000+/year​

Free zone: Flexi-desk packages provide a registered address, workspace access, and visa eligibility.

• DMCC flexi-desk: Included in packages starting AED 43,780​
• IFZA flexi-desk: AED 10,000-15,000 annually​

Timeline for Ejari: 1-2 days​

Step 4: Submit Final License Application

Mainland fee components:​

• Application/registration: ~AED 10,000
• License fee: AED 12,000-30,000 (depends on activity)
• Chamber of Commerce: AED 1,000-3,000
• Establishment card: Included in some packages

Free zone example (DMCC):​

• Application: AED 1,035
• Registration: AED 9,020
• Articles of Association: AED 2,020
• Annual license: AED 20,285
• Establishment card: AED 1,825/year

Processing timeline:​

• Mainland: 3-7 working days
• Free zones: 1-5 business days
• Basher platform (select activities): 15 minutes

What you receive: A digital trade license (PDF) with your license number, approved activities, and validity date.

Phase 3: Immigration and Banking

Step 5: Apply for Investor/Partner Residency Visa

Process:

1. Apply for entry permit via GDRFA or free zone immigration portal
2. Complete medical fitness test (5 minutes; results in 3 hours)​
3. Biometrics and Emirates ID issuance
4. Residence visa stamped in passport

Cost per person:​

• Residence permit issuance: AED 400 (application + per-year fees + smart service)
• Entry permit processing: AED 500-1,000
• Medical test: AED 300-500
• Emirates ID (2-year): AED 300
• Processing/typing fees: AED 500-1,000
• Total per person: AED 4,000-6,500

Visa quota allocation depends on office size:​

• Flexi-desk: 1-3 visas
• Small office (15-20 sqm): 3-5 visas
• Scales upward with larger premises

Timeline: 2-4 weeks after license issuance​

Family sponsorship: Once your residence visa is active, sponsor spouse/children with minimum AED 4,000/month salary (or AED 3,000 + accommodation)​

Step 6: Open Corporate Bank Account

UAE banks conduct rigorous KYC. Have these documents ready:​

• Trade license
• MOA and AOA
• Passport copies of shareholders and signatories
• Emirates ID (if issued; some banks accept applications before visa)
• Proof of address (UAE tenancy contract or international address)
• Business plan (for startups)
• Sample contracts or invoices
• Bank statements (6 months from previous accounts)
• Bank reference letter (strongly recommended)

Common challenges:​

• Minimum balances: AED 25,000-100,000​
• Account opening delays: New foreign-owned entities face multi-week approvals​
• No credit access for 2-3 years: Banks operate on relationship-based lending​

Mitigation strategies:

• Use neobanks (Wio Business, Mashreq NeoBiz) for lower minimums​
• Maintain strong documentation of genuine business activity
• Use your free zone’s banking partnerships​
• Respond quickly to all bank requests

Timeline: Same day to 2 weeks​

Phase 4: Post-Incorporation Compliance

1. Register for Taxes

Corporate tax: If revenue is greater than AED 1 million (individuals) or you’re a juridical person, register via EmaraTax​

VAT: Mandatory if taxable supplies > AED 375,000 annually; voluntary registration available below threshold​

Dubai Chamber: Mainland companies must register​

Sector-specific approvals: Healthcare (Dubai Health Authority), food (Dubai Municipality), education (KHDA), telecommunications (TDRA) require additional licensing​

2. Set Up Accounting Systems

Use cloud accounting software (QuickBooks, Xero, Zoho Books). Engage a UAE-licensed accountant or consultant (AED 500-2,000/month for basic bookkeeping).​

Why this matters: Compliance isn’t optional overhead—the Federal Tax Authority monitors digitally and enforces strictly. Penalties for non-compliance exceed professional accounting costs.

Cost Breakdown for 2026: Mainland vs Free Zone

1. One-Time Setup Costs

Mainland LLC (Dubai)

Free Zone Company

IFZA (Budget Option)

DMCC (Mid-Tier)

2. Annual Recurring Costs

Free Zone

Mainland

3. Real-World Scenarios

Scenario A: Solo Freelancer / SaaS Founder (Free Zone)

Setup: IFZA free zone, flexi-desk, 1 visa

Year 2 onward: 18,000-20,000/year

4. Scenario B: Small Consulting Team (Mainland)

Setup: Dubai mainland, shared office, 3 visas, 2 partners

Year 2 onward: 45,000-55,000/year

Hidden Costs to Budget For

• Six months’ operating capital for salary commitments and minimum bank balances​
• Health insurance: AED 1,500-3,000/person/year (mandatory for visa holders)
• Annual audit fees: AED 5,000-15,000​
• Office deposits and fit-out: Security deposits (1-2 months rent) + furniture/utilities setup​
• Visa rejection/resubmission: Budget AED 1,000-2,000 per person for potential reapplications​

Also Read: How Indian Entrepreneurs Can Open a Business Bank Account in UAE for Global Transactions

Visa and Residency Pathways for Indian Business Owners

1. Standard Investor/Partner Residency

Eligibility:​

• Valid trade license from DED or approved free zone
• Establishment card linking your visa quota to the license
• Proof of share ownership or directorship

Duration: 2-3 years, renewable​

Family sponsorship: Spouse and children with minimum AED 4,000/month salary (or AED 3,000 + accommodation)​

Cost: AED 3,800-6,000 per person​

2. Golden Visa Options

10-Year Investor Golden Visa

Eligibility:​

• AED 2 million minimum investment in:
  • UAE real estate (property valued ≥ AED 2M, no loans except UAE bank mortgage with 20% down)​
  • Public investments (investment fund letter)​
  • Business capital (AED 2M capital in company)​
• Investment must remain active for 2 years​
• OR annual tax payment of ≥ AED 250,000 to Federal Tax Authority​

Benefits:

• 10-year renewable visa​
• No sponsor required​
• Can sponsor spouse, children, executives, advisors​
• Multiple-entry 6-month business partner visas​

5-Year Entrepreneur Golden Visa

Eligibility:​

• Innovative/technical project valued ≥ AED 500,000​
• Letter from certified auditor confirming project value​
• Letter from approved business incubator or competent authority (Ministry of Economy, Emirates Development Bank) certifying innovation​

Use case: Funded Indian startups in AI, SaaS, biotech, or innovation sectors without requiring AED 2M capital investment.

Documents:​

• Valid passport
• Auditor’s letter on project valuation
• Business incubator or authority approval letter
• Proof of UAE residence
• Business plan and innovation evidence

3. 2-Year Real Estate Investor Visa (Alternative)

Eligibility:​

• Property investment ≥ AED 750,000​
• Shared ownership: AED 1M minimum​
• 50% down payment if financing​

Validity: 2 years, renewable; upgradeable to 10-year Golden Visa if property reaches AED 2M value​

4. Green Visa (Self-Sponsored for Freelancers)

Green visa is for high-earning consultants, designers, and creative professionals not requiring a formal company structure.

Eligibility:​

• Minimum education: Bachelor’s degree or specialized diploma
• Annual income: AED 360,000+ for previous 2 years (or proof of financial solvency)
• Must obtain freelance/self-employment permit from MOHRE​

Benefits:

• 5-year validity​
• Self-sponsored (no employer/company needed)​
• Can sponsor spouse and children​

Cost:

• MOHRE freelance permit: AED 6,000-10,000​
• Visa processing and Emirates ID: Standard visa costs
• Family sponsorship: +AED 3,000-5,000 per family member​

Common Practical Challenges and Solutions

“Is Dubai Worth It for a Solo Founder or Small Startup?”

Reality: If annual revenue is below AED 150,000 (~INR 34 lakhs), Dubai’s overhead likely outweighs benefits. Setup costs (AED 20,000-30,000) plus annual renewal costs (AED 18,000-62,000) consume 12-40% of revenue.​

When Dubai makes sense:

• You earn more than AED 500,000/year with 40%+ margins
• You serve international clients requiring credible UAE presence
• You need GCC market access for growth
• You require UAE residency visa

If you don’t meet these criteria, continue building in India until you do. Use the India-UAE DTAA to structure cross-border operations efficiently.​

1. Banking and Credit Access

Common frustrations:

• Minimum balance requirements: AED 25,000-100,000 for traditional banks​
• Account opening delays: New foreign-owned entities face 2-4 week approvals​
• No credit for 2-3 years: UAE operates on relationship-based lending​

Solutions:

• Use neobanks (Wio Business, Mashreq NeoBiz) with lower minimums​
• Implement WPS if hiring staff—banks view it as legitimacy signal​
• Maintain strong business documentation (contracts, invoices, business plan)
• Leverage free zone banking partnerships​

2. Tax Residency Complications

The mistake: Assuming “Dubai is tax-free” means zero tax obligation.

Reality:

• UAE has 0% personal income tax​
• But 9% corporate tax applies above AED 375,000​
• And if you’re an Indian tax resident, you must report UAE income in India​

Critical distinction:

• If you spend 182+ days in India (or 120+ days if your Indian-source income exceeds Rs. 15 lakhs), you remain an Indian tax resident and must report worldwide income in India. 
• You can claim Foreign Tax Credit under the India-UAE DTAA for UAE taxes paid​

Coordinated planning is essential. A one-time consultation with cross-border tax advisors (INR 50,000-100,000) prevents penalties and interest exceeding 10x that cost.

3. Compliance Under 2026 Tax Framework

Increased compliance rigor is non-negotiable:

• Record retention: 7 years for all business documents​
• Filing deadlines: Corporate tax returns due 9 months after fiscal year-end; VAT quarterly or monthly​
• Audit exposure: FTA can open audits beyond standard limitation periods in specific cases​
• Penalties: Late filing (AED 1,000-10,000+); incorrect returns (up to 50% of unpaid tax); WPS violations (work permit suspensions)​
• Best practice: Set up cloud accounting immediately (AED 0-500/month software + AED 500-2,000/month accounting support). This is infrastructure, not optional overhead.

Strategic Structuring for Scaling Indian Businesses

These structures suit businesses with AED 1M+ revenue or those planning significant growth.

1. Holding-Operating Company Models

Purpose: Separate ownership (holding company) from operations (operating company) for legal protection, tax efficiency, and succession planning.​

Typical structure:

• Free zone holding company: Owns subsidiary shares, holds IP, consolidates dividends
• Mainland operating company: Conducts local UAE business, employs staff
• Indian parent company: Retains India operations, owns UAE holding company

Tax treatment:​

• Intra-UAE dividends: 0% tax​
• UAE to India dividends: 10% withholding per India -UAE DTAA​

When to implement: Multiple revenue streams, planned acquisitions, or desire to separate operating risk from asset ownership.

2. IP and SaaS Structures

Concept: Place intellectual property (software, patents, trademarks) in a UAE free zone entity, which licenses to the Indian operating company.​

Important caveats:

1. Economic substance required: Your UAE entity must have genuine people, premises, and operations relative to its activities​
2. Transfer pricing compliance: Royalty rates must follow arm’s-length principles​
3. BEPS and GAAR considerations: Aggressive IP structures attract scrutiny from both FTA and Indian tax authorities​

3. Branch vs New Company

Branch of Indian company:

• Single legal entity simplifies consolidation
• Profits/losses flow directly to Indian parent
• But parent is fully liable for branch debts

New UAE company:

• Limited liability ring-fences risk
• Independent cap table enables external investment
• Requires separate financial reporting and audits

For most Indian startups: New company formation provides flexibility. If you plan external capital, local partnerships, or a standalone business, form a new UAE entity.

India-UAE Tax Coordination: Essential Advisor Discussions

Before finalizing your structure, address these questions with licensed tax advisors in both jurisdictions:​

1. Your Tax Residency Status

Question: Will I remain a tax resident of India?

Why it matters: If you spend 182+ days in India, you’re an Indian tax resident and must report worldwide income in India​

Verify:

• Expected days in India vs UAE
• India-UAE DTAA tie-breaker rules if resident in both​
• Plan to claim Foreign Tax Credit for UAE taxes​

2. Treatment of UAE Company Income

Question: How will my salary/dividend from the UAE company be taxed?

Verify:

• Dividends from UAE companies to Indian residents: Taxed at Indian slab rates​
• 10% withholding under India-UAE DTAA; credit against Indian tax​
• Salary income: If Indian resident, taxed in India; claim DTAA relief​

3. UAE Tax Benefits You Qualify For

Question: Does my company qualify for Small Business Relief or the free zone 0% tax?

Verify:

• Revenue ≤ AED 3M? → Small Business Relief eligibility​
• Free zone qualifying income? → 0% tax applies​
• Mainland: Standard 9% tax on profits > AED 375K​

4. Transfer Pricing and Intercompany Transactions

Question: If my UAE and Indian companies transact, what are the transfer pricing rules?

Verify:

• Royalties/fees India→UAE: 10% withholding per DTAA​
• Interest payments: Taxed in country of receipt​
• Management fees: Arm’s length pricing required​
• Economic substance: UAE entity must have real operations​

5. Place of Effective Management (POEM)

Question: Could Indian tax authorities claim my UAE company is actually Indian-resident?

Verify:

• Hold board meetings in UAE (or documented video with UAE-based directors)
• Ensure management decisions are documented in the UAE.
• Maintain substance (local staff, office, bank accounts)

FAQs 

1. Can I own 100% of a Dubai company as an Indian citizen?

Yes. Federal Decree-Law No. 26 of 2020 eliminated the 51% Emirati sponsor requirement. Indian citizens can own 100% across 1,000+ commercial and industrial activities. Strategic sectors (defense, banking, insurance, telecommunications) remain restricted.​

2. Do I need to be physically present in Dubai?

• Most steps: Can be completed remotely (online applications, document submissions)​
• In-person required: Medical test, Emirates ID biometrics, some bank account openings​
• Recommendation: Visit for 7-10 days during setup to handle all in-person requirements efficiently​

3. Can I run my company from India while maintaining a Dubai license?

• Legally: Yes, if you maintain your UAE residence visa​
• Substance requirements: Your company must have genuine UAE operations (local staff, office, UAE-based customers) to maintain free zone tax benefits or Small Business Relief​
• Tax implications: If you spend 182+ days in India, you’re an Indian tax resident and must report UAE income in India​

4. What are the tax benefits for an Indian owning a Dubai company?

In the UAE:

• 0% personal income tax on salaries and dividends​
• 0% corporate tax if qualifying (free zone qualifying income or Small Business Relief)​
• 9% corporate tax for mainland companies above AED 375K​

In India: If you’re an NRI (non-resident of India), foreign income is not taxable in India. If you remain an Indian tax resident, you must report UAE income in India but can claim Foreign Tax Credit under India -UAE DTAA​

5. Can I sponsor visas for family and employees?

Family:

• Spouse and children: AED 4,000/month salary (or AED 3,000 + accommodation)​
• Parents: AED 20,000/month salary (or AED 10,000 + humanitarian permit)​

Employees:

• Your visa quota scales with office size (flexi-desk: 1-3 visas; larger: scales up)​
• Cost per visa: AED 3,500-6,000​
• WPS (Wage Protection System) mandatory for MOHRE-registered employees​

6. How does the Golden Visa work for Indian investors?

• Investor (10-year): AED 2M investment in real estate, public investments, or business capital​
• Entrepreneur (5-year): Innovative/technical project valued ≥ AED 500,000 with incubator letter​
• Benefits over standard visa: Longer validity (5-10 years), no continuous company sponsorship, family inclusion​

Conclusion: Your Next Steps

Dubai works brilliantly for the right businesses at the right stage. It’s expensive, bureaucratic, and isolating for the wrong ones.

You’re ready if:

1. Annual revenue exceeds AED 500,000 (~INR 1.14 crores) with 40%+ margins
2. You serve international clients and need credible global presence
3. You’re willing to spend 120+ days per year in the UAE.
4. You need GCC market access for growth
5. You have capital for 12-18 months of operations
6. You’re comfortable with high-compliance, low-tax environment

If you check all six boxes, start with the step-by-step checklist above. If you check fewer than four, continue building in India until you do.

Ready to Start Your Dubai Setup?

Book your free consultation call today with the experts of JSB Incorporation to learn more about setting up your business.