What are the important things to check when setting up a company in Dubai from India?

By following these guidelines and taking the necessary precautions, Indian entrepreneurs can successfully establish and grow their businesses in Dubai. 

The top 7 vital things that everyone should check are: – 

1. Documents needed for Dubai Company Setup 
2. Taxation Rates in Freezone and Mainland In UAE  
3. Duration Of Establishing a Dubai Company Setup  
4. Fees for Company Registration in Dubai    
5. Managing the Dubai Company Setup   
6. Does the Indian Government Tax the Money Earned in a Freezone by Indians?   
7. More Requirements for the formation of Dubai Company from India   

All these points have been explained in detail below- 

Documents Needed for Dubai Company Setup  

A lot of paperwork must be ready if you’re an Indian national interested in establishing a business in Dubai. Moreover, these documents include a passport copy of all shareholders and directors, as well as a residence visa copy (if applicable) and a no-objection certificate from your current sponsor. 

It’s important to note the specific documents required and the formation process. The documents required and the formation process can vary. This depends on the type of company being formed. However, it is better to consult with a local business consultant or law firm with experience in Dubai company setup from India. 

Taxation Rates in Freezone and Mainland In UAE 

The taxation rates are the primary factor for a large number of Indians to choose company formation in Dubai. Until a few years ago, there was virtually no tax anywhere in the United Arab Emirates. Neither an income tax nor a VAT (Value Added Tax) / GST (Goods and Services Tax) or any other kind of tax existed.

Nevertheless, starting in June 2023, mainland entities’ profits over 3,75,000 UAE dirhams would be subject to a 9% corporate tax. Only Mainland-based entities are subject to this tax; freezone-based entities are not. In addition to the 9% Corporation Tax, mainland companies selling in the UAE are subject to VAT. Most items have a 5% VAT rate. 

However, this only applies to transactions made in the UAE countries; it does not apply to sales made to clients who are in nations such as the United States, Canada, Europe, Australia, etc. 

Duration Of Establishing a Dubai Company Setup  

Several factors, including the type of business you are forming, the location, and the requirements of the Department of Economic Development (DED) in Dubai, might affect how long it takes to set up a Dubai company establishment. The process might often take a few days to many weeks.

The process of Dubai company setup from India can be quite involved and time-consuming. However, working with a local business consultant or law firm can help to streamline the process. Additionally, ensure that everything is done properly and efficiently. 

Fees for Company Registration in Dubai  

The fees for company registration in Dubai vary depending on the type of company and specific requirements. Cost of Registering an LLC in Dubai starts from AED 18500. The exact cost will depend on the specific needs of your business. 

It is advisable to speak with a local business consultant or legal firm with experience in Dubai company formation. They can provide a precise estimate of the fees and charges related to company registration in Dubai. Additionally, they can guide you through the procedure and give you a clear understanding of all the fees and costs associated with business setup in Dubai. 

Managing the Dubai Company Setup 

After establishing the appropriate organizational structure and registering your company in Dubai, you no longer need a skilled consultant to assist you in managing the business. Managing a Dubai company setup can be made more convenient and efficient through the use of net banking.  

With net banking, company owners and managers can easily and securely perform various financial transactions without the need to physically visit a bank. Additionally, managing international business transactions is now more convenient through net banking for executing cross-country transactions. 

Does the Indian Government Tax the Money Earned in a Freezone by Indians? 

Whether the directors of the company are located inside or outside of India will determine whether the Indian government would impose tax on the income earned. If Directors reside outside of India, neither the Indian Government nor the Company may impose taxes on the Directors’ or the Company’s income.

The Company will be a resident of India if the Directors are based there, at which point the Indian government will impose taxes on both the Directors’ and the Company’s income. 

More Requirements for the formation of Dubai Company from India 

It is also advisable to set up a company through Shuraa Business Setup if you are an Indian resident or citizen looking to form a company outside of India in a Freezone in Dubai. We can provide valuable guidance and assistance in ensuring that these compliance requirements are met. They are aware of both Indian and Dubai/UAE tax and investment regulations and choose to start out legally compliant rather than later repent. 

If any Indian resident establishes a corporation in any nation outside of India, additional requirements must be completed in India. Following are the extra requirements that must be fulfilled are: – 

• Firstly, the Indian ITR Form requires the stakeholders of the Dubai company to disclose the shares they own in the Dubai Company. 
• In some circumstances, the stakeholders of the Dubai firm must also inform the RBI of their Dubai company. 

Dubai Free Zone Company Setup from India 

Dubai provides a favorable business environment, modern infrastructure, and a strategic location. It connects Asia, Europe, and Africa. In particular, the free zones in Dubai are a popular option for setting up a business due to the many benefits they offer. Indian residents or citizens setting up a company in a Freezone in Dubai should also understand the legal requirements and regulations. 

The process can be complex, and there are several steps you need to follow to ensure a successful setup. For example, you will need to choose the right free zone, determine the type of company you want to set up, obtain a local service agent, apply for a trade license, and obtain visas for yourself and your employees. The following are the steps involved in setting up a Freezone company in Dubai: 

• Determine the Business Activity 

• Decide on a Business Structure 

• Find a Suitable Location 

• Register Your Business 

• Obtain Licenses and Permits 

• Open a Bank Account