Dubai Company Formation for Indians: Complete Guide 2026
Quick Answer
Can Indians set up a company in Dubai? Yes. Indian nationals can establish 100% foreign-owned companies in Dubai — both mainland and free zone. No local partner required. Setup costs start from AED 5,750 (~₹1.3 lakh) for a basic free zone license. Visa allocation included with most packages.
Mainland vs Free Zone for Indian Entrepreneurs
| Factor | Mainland | Free Zone |
|---|---|---|
| Local UAE clients | ✅ Can trade freely | ❌ Restricted |
| International clients | ✅ | ✅ |
| Setup cost | AED 35,000–65,000 | AED 5,750–30,000 |
| Physical office | Required | Flexi-desk available |
| Corporate tax | 9% above AED 375K | 0% (qualifying income) |
| Visa allocation | Based on office size | Fixed package |
| Best for | Retail, F&B, services to UAE market | Trading, consulting, e-commerce, IT |
For most Indian entrepreneurs starting out: Free zone is the better option. Lower cost, simpler setup, visa included, and 0% corporate tax on qualifying income.
If you're targeting UAE consumers or government contracts: Mainland is necessary.
Popular Free Zones for Indian Business Owners
IFZA (International Free Zone Authority)
Cheapest option. General trading license from AED 5,750. Popular with first-time Indian entrepreneurs. 1–6 visa allocation.
DMCC (Dubai Multi Commodities Centre)
Premium free zone for trading, commodities, and gold. Higher setup cost (AED 15,000+) but stronger banking and reputation. Very popular with Indian gold and commodity traders.
Dubai Internet City / Dubai Media City
For IT companies, software development, and digital media. Indian tech companies frequently set up here.
JAFZA (Jebel Ali Free Zone)
For logistics, warehousing, and manufacturing. Indian import/export businesses often choose JAFZA for its port access.
Costs in INR
Approximate exchange rate: ₹22.5 per AED.
Free Zone (IFZA — Most Affordable)
| Item | AED | INR |
|---|---|---|
| License + registration | 5,750 | ₹1,29,375 |
| Visa package (3 visas) | 5,000–8,000 | ₹1,12,500–1,80,000 |
| Emirates ID + medical (per visa) | 1,500 | ₹33,750 |
| Total Year 1 | ~15,000–20,000 | ₹3,37,500–4,50,000 |
Free Zone (DMCC)
| Item | AED | INR |
|---|---|---|
| License + registration | 15,000 | ₹3,37,500 |
| Flexi-desk | 8,000–15,000 | ₹1,80,000–3,37,500 |
| Visa package (3 visas) | Included | — |
| Emirates ID + medical | 4,500 | ₹1,01,250 |
| Total Year 1 | ~27,000–35,000 | ₹6,07,500–7,87,500 |
Mainland (General Trading)
| Item | AED | INR |
|---|---|---|
| DED trade license | 12,000–15,000 | ₹2,70,000–3,37,500 |
| Office rent | 15,000–40,000 | ₹3,37,500–9,00,000 |
| Establishment card + admin | 6,000–8,000 | ₹1,35,000–1,80,000 |
| Visa (per person) | 3,500–5,000 | ₹78,750–1,12,500 |
| Total Year 1 | ~40,000–70,000 | ₹9,00,000–15,75,000 |
RBI and FEMA Compliance
Overseas Direct Investment (ODI)
Setting up a company abroad is classified as Overseas Direct Investment under FEMA. Indian residents must report the investment to the RBI through their authorized dealer bank using Form ODI.
LRS route
Investment up to USD 250,000 per financial year can be remitted under the Liberalised Remittance Scheme. For a basic free zone setup (AED 15,000–35,000 / USD 4,000–9,500), this is well within the LRS limit.
TCS on remittance
20% TCS applies on remittances above ₹7 lakh per financial year (refundable against income tax).
Ongoing compliance
Annual financial statements may need to be filed with your authorized dealer bank. Indian residents must report foreign assets on their tax returns (Schedule FA of ITR).
Step-by-Step Process
- Choose business activity — general trading, consulting, IT services, etc.
- Choose structure — mainland or free zone (and which free zone)
- Reserve company name — through the relevant authority
- Submit application — with passport copies, photos, business plan (if required)
- Pay fees — license, visa package, admin
- Receive license — typically 3–7 business days for free zones, 1–2 weeks for mainland
- Apply for visas — investor visa for yourself, employee visas for staff
- Open bank account — UAE bank account in the company's name (2–4 weeks)
- Start operating — invoice clients, receive payments, begin business
Total timeline: 2–4 weeks from application to operational company with bank account.
UAE Corporate Tax for Indian Business Owners
Since June 2023, the UAE charges 9% corporate tax on profits above AED 375,000 for mainland companies and non-qualifying free zone income.
Free zone companies earning qualifying income (international trade, intra-free-zone transactions) pay 0%. This makes free zones particularly attractive for Indian entrepreneurs doing international business.
Mainland companies pay 9% on net profits above AED 375K. Below that threshold, the rate is 0%.
For comparison, India's corporate tax rate is 25% (for companies with turnover up to ₹400 crore) or 30% for larger companies. Even the UAE's 9% mainland rate is dramatically lower.
FAQ
Can I run a Dubai company from India?
Yes — many Indian entrepreneurs manage their Dubai companies remotely. However, the company must have a physical registered address in Dubai (flexi-desk counts for free zones), and if you hold an investor visa, you'll need to visit the UAE periodically for visa-related matters.
Do I need to move to Dubai?
No. You can set up and own a Dubai company without relocating. An investor visa (included in most packages) gives you the right to live in Dubai but doesn't require it.
Can I have both an Indian company and a Dubai company?
Yes. Many Indian entrepreneurs maintain their Indian business and establish a separate Dubai entity for international operations. Just ensure proper transfer pricing documentation between the two entities.
How do I get paid by the Dubai company?
As a shareholder/director, you can receive salary (if employed by the company) or dividends. Both are tax-free in the UAE. You must declare this income on your Indian tax return if you're an Indian tax resident.
Is it worth it for a small business?
For a consulting, trading, or service business earning ₹50 lakh+ annually from international clients, a Dubai free zone company can save significant tax compared to operating from India. The setup cost (₹3–8 lakh) is recoverable within the first year for most viable businesses.