The UAE remains one of the most attractive destinations for Indian entrepreneurs looking to expand internationally. If you are planning to start business in UAE from India, it is important to understand the legal structure, licensing process, documentation requirements, taxation framework, and overall setup cost before proceeding.
This guide explains the complete process of UAE company formation for Indians, including jurisdiction selection, company structure, visa options, banking requirements, and compliance obligations.
Why Indians Choose the UAE for Business Expansion
The UAE offers several structural advantages:
- 100 percent foreign ownership in most sectors
- No personal income tax
- Competitive corporate tax regime
- Strong banking system
- Access to GCC, Africa, Europe, and Asia markets
- Investor residence visa options
For Indian founders, the UAE also offers geographic proximity, strong bilateral trade relations, and ease of travel.
Table of Contents
1. Choose the Right Jurisdiction
There are three primary options.
Mainland Company:
- Allows business across the UAE
- Eligible for government contracts
- Physical office required
- Licensed by the Department of Economic Development
- Suitable for trading, retail, restaurants, contracting, and professional services.
Free Zone Company :
Your commercial registration determines:
- 100 percent foreign ownership
- Faster registration process
- Flexi desk options available
- Cannot directly trade in mainland without distributor
Popular free zones include:
- Dubai Multi Commodities Centre
- Dubai Silicon Oasis
- Jebel Ali Free Zone
- Suitable for consulting, IT services, ecommerce, trading, and startups.
Offshore Company:
- No physical office required
- No UAE residence visa
- Suitable for holding assets and international trade
- Best for structuring, investment holding, and global operations.
2. Select Business Activity
Your business activity determines the type of license you require:
- Commercial license
- Professional license
- Industrial license
- Ecommerce licenseIncorrect activity selection can delay approvals and affect banking.
3. Decide Company Structure
Common structures for Indians include:
- Limited Liability Company
- Sole Establishment
- Free Zone Company
- Branch of Indian Company
- The structure impacts liability, visa eligibility, and tax treatment.
4. Reserve Trade Name
The trade name must:
- Comply with UAE naming regulations
- Reflect business activity
- Not duplicate existing registrations
- Avoid restricted words
5. Obtain Initial Approval
Authorities review:
- Shareholder passport copies
- Proposed activity
- Corporate structure
- Compliance eligibility
6. Secure Office Space
- Mainland companies require physical office space
- Free zones allow flexi desk or shared office options
- Offshore companies do not require office space
7. Obtain Trade License
Once approvals are completed:
- Trade license is issued
- Incorporation documents are generated
- Memorandum of Association is finalized
8. Open Corporate Bank Account
Corporate banking in the UAE involves detailed due diligence.
Required documents typically include:
- Trade license
- Incorporation documents
- Shareholder passport
- Business plan
- Proof of address
- Visa copy if applicable
- Proper structuring improves approval chances.
9. Apply for Investor Visa
Business owners may apply for:
- Investor residence visa
- Partner visa
- Golden visa subject to eligibility
This allows residence in the UAE and family sponsorship.
Documents Required to Start Business in UAE from India
Generally required:
- Passport copy
- Passport photographs
- Business plan
- No objection certificate if required
- Bank reference letter in some cases
Certain documents may require notarization or attestation.
Cost of UAE Company Formation for Indians
The cost depends on:
- Jurisdiction
- Number of visas
- Office type
- Business activity
- Government fees
Estimated starting range is typically AED 12,000 to AED 35,000 or more, depending on structure.
Taxation for Indian Entrepreneurs
The UAE tax framework includes:
- No personal income tax
- Corporate tax at 9 percent above the prescribed threshold
- VAT registration required if turnover crosses the limit
Indian founders must also evaluate Indian tax residency and double taxation agreements.
Common Mistakes When Starting Business in UAE from India
- Choosing jurisdiction based only on cost
- Ignoring banking compatibility
- Selecting incorrect business activity
- Not planning visa requirements properly
- Failing to understand corporate tax compliance
Careful planning at the beginning prevents restructuring costs later.
How Professional Consultants Assist with UAE Company Formation
Maju Management Consultancy provides structured support for:
- Mainland and free zone company formation
- Trade name registration
- Visa processing
- Corporate bank account assistance
- Tax consultation and compliance
- Trademark registration
- AML advisory
- Liquidation services
With more than 14 years of experience and over 4,600 successful incorporations, the firm supports Indian entrepreneurs expanding into the UAE
FAQs
1.Can I start business in UAE from India without visiting?
Yes. Many free zones allow remote incorporation subject to document verification.
2. Can Indians own 100 percent of a UAE company?
Yes. Most mainland and free zone sectors allow full foreign ownership.
3.How long does UAE company formation take?
Typically 7 to 15 working days depending on jurisdiction and approvals.
4. What is the minimum investment required?
It varies by jurisdiction but usually starts from AED 12,000 onwards.
5.Is corporate tax applicable in UAE?
Yes. Corporate tax at 9 percent applies above the prescribed profit threshold.
6. Can I sponsor my family under investor visa?
Yes, subject to eligibility and income criteria.
7. Can a UAE company operate in India?
Yes, but Indian tax regulations must be evaluated.
