Dubai, a significant global business center, has lured businessmen from around the world including businessmen from India. Dubai, with its modern infrastructure and (tax benefits and strategic location), is emerging as one of the most favoured destinations for Indian citizens to start business. However, starting a company in Dubai has numerous legal, financial and bureaucratic concerns. Hence, this writes the best and signature way of establishing a business in Dubai as an Indian citizen in 2025.
Choose the Type of Business Structure
Before diving into the paperwork, it’s essential to decide on the type of business structure. Dubai offers various options, depending on the nature of your business. These include:
- Mainland: You can run your company anywhere in Dubai and the UAE with this choice. It requires a local sponsor (national UAE) to hold 51% ownership except the type of business may be exceptions.
- Free Zones: Foreign citizens, including Indian citizens, can own 100% of free zone companies in UAE. Free zones may have certain benefits such as exemption from taxes or ease of procedure, but the business is generally not permitted to deal in the local market or serve domestic customers or New Markets.
- Offshore: Best for businesses that want to be located outside of the UAE but are happy to utilise the country’s tax benefits.
Business License and Activity
Next, you’ll need to determine the type of business license you require. Dubai offers three main categories of business licenses:
- Commercial License: For trading businesses.
- Industrial License: For manufacturing or industrial operations.
- Professional License: For service-based businesses like consultancy, healthcare, or education.
Ensure you select the correct type of license for the business activity. Certain activities are restricted and will be evaluated by the UAE authorities to determine if they are appropriate to the license category.
Register Your Company Name
Choosing a unique name for your company is a vital step in the business registration process. Ensure that the name adheres to Dubai’s naming conventions. These include:
- Avoid using offensive or inappropriate terms.
- Ensure that the name does not resemble the names of existing companies.
- Avoid using religious names or abbreviations that might be misconstrued.
- Once you’ve settled on a name, you must register it with the Department of Economic Development (DED) in Dubai.
Secure a Local Sponsor (for Mainland Business)
In case you want to start your business at the mainland, you need to have a local sponsor. The sponsor must be a UAE national who will hold 51% of the business. There are exceptions for specific business types like professional or consultancy services, which allow you to be 100% sole ownership. These can be complex, so it is wise to seek legal help.
On the other hand, if you are a free zone company, you may not require a local sponsor and may own 100% of your company. Get details about Mainland Company Formation Service in Dubai.
Get Approvals and Permits
Additional licenses may be required by institutions or governmental departments depending on the nature of your business. For instance, companies in industries such as healthcare, education, food, and tourism need to obtain important licenses and inspections. Make sure you have the required approvals before registering a business.
Office Space
In Dubai, you must acquire a physical office, as its a requirement for most of the business types, except for some free zone companies, where flexi-desk options may be catered. This means you’ll need to provide proof of office space, whether it’s a full office or a shared workspace. This is part of an effort by the Dubai government to ensure that businesses are legitimate and functioning.
Visa and Immigration Requirements
Indian nationals seeking to launch their businesses in Dubai must acquire a residency visa. After your business has been registered, you then apply for a UAE residency visa, allowing you to live and work in the country. Besides, you have to apply for an employee visa when you want to recruit workers.
The process for free zone companies might be more straightforward, as a lot of free zones provide packages that cover work visas, business locations, and additional essential services. Looking for a Free Zone Company Formation Service in Dubai?
Bank Account Setup
Opening a business bank account is another important step. Banks in Dubai generally require various documents for business account opening, including:
- Company registration details.
- Proof of ownership and shareholder details.
- Business plan and financial projections.
- Valid identification (passport, visa, etc.).
Ensure you choose a bank that suits your business requirements and offers international transaction services if needed.
Obtain a Tax Registration Number (TRN)
Although companies based in Dubai enjoy tax benefits, you need to register with the Federal Tax Authority (FTA) and get a Tax Registration Number (TRN) if you meet certain conditions; this is particularly important if your business exceeds the value-added tax (VAT) registration threshold (currently AED 375,000 worth of annual turnover). In the UAE, VAT (Value Added Tax) is fixed at 5% and registration allows you to charge VAT on goods and services while also allowing you to claim VAT refunds.
Understand the Costs Involved
Starting a business in Dubai as an Indian citizen involves various costs, including:
- License Fees: Depending on the license type and business structure.
- Office Rent: Rent costs vary based on location and the type of office.
- Visa Costs: For the owner and employees.
- Legal and Consulting Fees: Especially if you require a local sponsor or if your business activity requires additional approvals.
It’s important to factor in these costs when planning your business budget.
Legal and Accounting Support
Engaging legal and accounting staff to follow local law is highly recommended They will help you with everything from registering your business, financial reporting, tax obligations, and employee contracts, among others.
Call +971 56 658 2477 for Business Setup Service in Dubai
Starting an Indian business in Dubai 2025 is a simple process if you follow the appropriate legal actions and meet all regulatory requirements. With a proper business structure, licenses, and office space, and by knowing the visa and tax, you can successfully set up your business in Dubai. In this dynamic and competitive market, where various steps can be complex, professional advice and support can point you in the right direction.
FAQ
Indian citizens are required to furnish a valid passport, residency proof and a sound business plan. They have to also select a proper business structure (LLC, Free Zone, etc.), along with getting the necessary permits.
In the mainland, generally an Indian citizen (for business) requires a local sponsor or a UAE national partner. In Free Zones, this requirement can be exempted.
Indian citizens seeking to open a business will require a UAE resident visa. An investor visa or employment visa depending upon the setup of the business.
Yes, you will need to have a physical office space for most business setups in mainland. But Free Zone companies might provide shared office space or virtual office space.