Indians are one of the most prominent groups of investors with a successful record of running lucrative businesses in Dubai. For years, Indian investors have been the top benefactors of the landscape of business setup in Dubai. The India-UAE trade relationship has achieved a significant milestone in 2022 with the signing of the historic Comprehensive Economic Partnership Agreement (CEPA) on 1st May 2022.
Dubai has created a conducive business environment for investors from across the world including Indian investors. An Indian investor wishing to open a company in Dubai can benefit from factors such as low taxation, 100% foreign ownership, robust infrastructure, strategic location, ease of doing business etc. Moreover, a license can be obtained fast with the help of business setup consultants in Dubai. The below article provides you with a guide for starting a business in Dubai:
Benefits of Starting a Business in Dubai
Indians must assess how they can benefit by setting up a business in Dubai instead of their homeland. Dubai is a global market and a gateway to the lucrative markets in the Middle East. Setting up a business in Dubai is your first step in expanding into other big global markets. However, you are advised to seek the help of business setup consultants in Dubai to understand the legal requirements. See the following list to know about the benefits of company formation in Dubai:
100% Company Ownership for Foreigners
Fully owning a company in Dubai is no longer a big deal for foreign investors, including the Indian investors. You can start a business in Dubai with 100% ownership in any of the 35 plus active free zones in the emirate. Apart from that, it is now possible for foreigners to open a company in Dubai mainland with full ownership. Investors are no longer required to have a local sponsor to establish a company on the mainland. You can even own a single owner limited liability company (LLC) in Dubai mainland and enjoy the ability to trade anywhere in the country.
Lower Tax Rates
Compared to their home country, Indians may find the tax regime in the UAE one of the lowest in the region. The UAE currently levies only the Value Added Tax (VAT) at a meagre rate of 5%. A corporate tax on business profits is likely to take effect in 2023. The UAE corporate tax will be imposed at a rate of 9% for taxable income above AED 375,000 and 0% for taxable income up to AED 375,000. The 9% rate is one of the lowest in the Middle East when compared with other countries in the region. Business setup consultants in Dubai can advise you further on the tax regime in the country.
Long-Term Residency Options
The UAE recently overhauled its residency system, offering long-term visa options for foreign investors and professionals. Many Indian investors have already obtained the much-coveted Golden Visa that offers a 10-year residency in the country. Furthermore, the government has introduced green visas that allow 5 years residency permit for skilled employees without a sponsor or employer.
Proximity to the Local Indian Community
Indians won’t feel away from home if they live and set up a business in Dubai. Dubai is one of the top destinations where Indians frequently migrate to work, live and do business. Since thousands of Indians consider Dubai as their second home, you won’t struggle to fit in. Furthermore, investors need not worry about the education of their children as there are plenty of Indian schools across the UAE.
Comprehensive Economic Partnership Agreement
India and the UAE have recently signed a trade pact called CEPA that will cut all tariffs on each other’s goods. The new trade pact aims to boost annual trade between the two nations from USD 60 billion to USD 100 billion within five years. Investors can leverage the benefits of the CEPA agreement by setting up a business in Dubai.
How can Jitendra Business Consultants Help You?
The landscape of business setup in Dubai is conducive for Indian investors wishing to make their dreams come true. The assistance of business setup consultants in Dubai has become essential for Indian investors to make the right legal choices. For instance, choosing the right options for company formation in Dubai such as free zone, offshore and mainland requires a high degree of meticulousness and market knowledge. This is where company formation specialists such as Jitendra Business Consultants (JBC) come in handy for the investors. JBC’s team will help the entrepreneurs with requirements such as visa processing, document clearance, labour and immigration approvals, bank account opening etc.