Reasons Why Indians Are Setting Up Companies In Dubai

 With more than 30% of Dubai’s companies having Indian roots, Dubai has emerged as a prominent destination for Indian entrepreneurs.

Based on recent data, approximately 50,000 Indian companies are registered and actively working in Dubai, indicating that a sizeable component of the city’s commercial community is Indian.

Numerous variables, such as advantageous tax laws, trade policies that support businesses, options for trading cryptocurrencies, advantages with income taxes, and more, are contributing to this boom.The top reasons Indians are establishing businesses in Dubai are shown below.

Why Indians are Setting Up Companies in Dubai?

1. More Clients

Dubai’s strategic location opens access to the vast Middle East and North Africa (MENA) market, comprising over 1 billion potential customers. The high-spending clientele in Dubai allows Indian companies to command higher prices and margins compared to the Indian market.

2. International Business Transactions
Conducting international business from India can be cumbersome due to restrictive regulations and extensive documentation. Dubai offers a free and open environment for international payments, eliminating the complexities and delays associated with remitting funds abroad from India.

3. Credibility & Branding
Establishing a company in Dubai provides instant credibility and prestige. A Dubai address signifies international reach, innovation, and quality, which is particularly valuable for attracting new clients and investors.

4. Booming Dubai Real Estate
Dubai’s real estate market is growing, presenting opportunities for profitable investments. Rental yields in Dubai are higher compared to India, and there are potential tax benefits associated with owning property through a company structure.

5. Business Trade Practices
Indian entrepreneurs often worry about sensitive trade information leaking from customs ports. Setting up a company in Dubai acts as a confidentiality shield, protecting sensitive trade relationships by routing transactions through the Dubai entity.

6. No Limitation on Holding Foreign Currency

The Reserve Bank of India (RBI) restricts the duration for which Indian businesses can hold foreign currency. Dubai allows companies to hold foreign currency like US Dollars indefinitely, providing greater financial flexibility for international transactions.

7. UAE Residence Visas

Establishing a company in Dubai facilitates access to various UAE residence visas, including the prestigious Golden Visa, which offers long-term residency for entrepreneurs and investors. This enables Indians to live and work legally in Dubai.

8. Hiring Employees
A Dubai-based branch or subsidiary allows Indian companies to sponsor employment visas for workers, enabling them to hire talent from around the world. Dubai’s cosmopolitan environment attracts a skilled workforce from various countries.

9. Crypto Trading
Dubai is developing a progressive regulatory framework for digital assets, providing a secure environment for crypto businesses. Unlike India’s 30% tax on crypto profits, Dubai offers a tax-friendly environment with no taxes on cryptocurrencies, attracting crypto traders globally.

10. Low Tax Jurisdiction
Dubai offers a favorable tax environment with a corporate tax rate of just 9% beyond a certain threshold and multiple tax and VAT benefits in free zones. Proper structuring can ensure that profits earned by a Dubai company are not taxed in India, as per the concept of Permanent Establishment.

Setting up a company in Dubai requires careful planning to comply with both Indian and UAE tax regulations. Consulting with a tax advisor or business setup consultant like Unicorn Global Solutions specializing in India-UAE tax matters is highly recommended to ensure compliance and optimize benefits.

Make it Happen with Unicorn Global Solutions

two people discussion business

Dubai presents a wealth of opportunities for Indian entrepreneurs looking to expand and optimize their ventures. While navigating the legalities and paperwork can seem daunting, there’s no need to worry—Unicorn Global Solutions is here to help.

As your one-stop shop for establishing a business in Dubai, our team of experts handles everything from company registration and licensing to securing visas and finding the perfect office space. We understand the unique needs of Indian entrepreneurs and ensure a smooth transition for you and your team.

Don’t miss out on the exciting possibilities that await in Dubai! Contact Unicorn Global Solutions for a free consultation. Text us on WhatsApp or call us today.

Facebook
Twitter
LinkedIn
WhatsApp
Picture of Sravanthi
Sravanthi

Leave a Reply

Your email address will not be published. Required fields are marked *

SMALL LOGO BLUE

Contact Us

Let's have a chat