Over 15,000 Indian companies shifted their base or opened subsidiaries in Dubai during 2023, according to the Dubai Chamber of Commerce. The trend continues in 2024 and 2025 as entrepreneurs and startups seek better global access, tax benefits, and ease of doing business.
At first glance, many assume it’s all about zero taxes, but that’s only part of the story. The real reason behind this migration is Dubai’s strategic business ecosystem, one that combines speed, stability, and scalability like few others in the world.
1. The Real Reasons Indian Entrepreneurs Are Heading to Dubai
a. Global Hub Advantage
Dubai’s geographic position makes it a gateway to 2 billion+ consumers across Asia, Europe, and Africa. From manufacturing and logistics to fintech and e-commerce, Indian companies use Dubai as a launchpad for global operations.
b. Favourable Tax Regime
Since 2023, the UAE has introduced a federal corporate tax of 9% for taxable profits above AED 375,000 (~₹88 lakh).
However, income up to AED 375,000 remains tax-free, and Free Zone entities that meet qualifying criteria still enjoy 0% tax.
This means Indian entrepreneurs can legally optimize tax efficiency while staying compliant, a balance that’s difficult to achieve in India’s complex tax structure.
c. Free Zones and Full Ownership
Dubai offers over 40 free zones, each catering to different industries such as tech, media, trade, and finance. These zones allow 100% foreign ownership, 0% import/export duties, and 100% profit repatriation.
Popular free zones include:
- Dubai Multi Commodities Centre (DMCC)
- Dubai Internet City
- Dubai Airport Free Zone (DAFZA)
- IFZA Dubai (International Free Zone Authority)
For many Indian SMEs, this flexibility is unmatched compared to India’s bureaucratic frameworks.
2. Golden Visas: Long-Term Stability for Founders
The UAE Golden Visa has become another major attraction. It offers 5-year or 10-year residency to investors, business owners, professionals, and even freelancers who meet the eligibility criteria.
Benefits include:
- No local sponsor required
- Ability to sponsor family members
- Long-term residency even if business conditions change
For Indian founders facing visa restrictions in other countries, Dubai’s Golden Visa represents permanent entrepreneurial stability.
3. Ease of Business Setup
Unlike India’s paperwork-heavy processes, Dubai offers fast online registration.
Some free zones allow you to set up a business in as little as 15 minutes through platforms like Bashr and Instant License Service.
Requirements generally include:
- Passport copy
- Business plan
- Address or office space details
- Minimum share capital (depends on zone)
Even banking and residency processes are streamlined, often completed in days rather than months.
4. Cost of Doing Business in Dubai vs India
| Factor | India | Dubai (Free Zone) |
|---|---|---|
| Corporate Tax | 25–30% (depending on turnover) | 0% up to AED 375,000; 9% above |
| Ownership | Limited Foreign Ownership | 100% Foreign Ownership |
| Business Setup Time | 15–30 days | 1–7 days (sometimes minutes) |
| Import/Export Duty | Applicable | 0% within Free Zones |
| Compliance & Audits | Multiple regulatory filings | Simplified structure |
| Profit Repatriation | Restricted | 100% allowed |
Dubai’s streamlined processes and competitive taxation make it the natural next step for Indian entrepreneurs looking to scale globally.
5. The Economic Opportunity
Dubai isn’t just a tax haven; it’s a global innovation hub. The city’s economic plan, D33, aims to double Dubai’s economy within a decade.
Sectors like AI, fintech, renewable energy, e-commerce, and logistics are witnessing massive investment.
For Indian startups and MSMEs, setting up in Dubai opens the door to:
- Access to venture capital and global investors
- Networking through Dubai Chamber, DIFC, and incubators
- Regional expansion into GCC, MENA, and African markets
6. Legal and Compliance Considerations
While Dubai’s system is business-friendly, entrepreneurs must remain compliant with:
- Corporate Tax Law (9%) – applicable from June 2023 for mainland companies.
- Economic Substance Regulations (ESR) – to demonstrate genuine business activity.
- Anti-Money Laundering (AML) Regulations – for financial transparency.
- UAE Labour Law – for employee contracts and benefits.
A reliable business consultant or corporate service provider can help ensure your setup meets all legal obligations.
7. How Indian Companies Can Register in Dubai
Step-by-Step Process:
- Choose between Mainland or Free Zone setup.
- Select a business activity and register a company name.
- Submit application with passport copies and documents.
- Receive initial approval and lease an office (virtual or physical).
- Get trade licence and establish a bank account.
- Apply for visas (owner, family, employees).
- Begin operations and maintain annual renewals.
8. Key Costs to Expect (Approximation)
| Expense | Range (AED) |
|---|---|
| Trade Licence | 8,000 – 15,000 |
| Office/Desk Space | 5,000 – 12,000 |
| Visa (per person) | 3,000 – 5,000 |
| Bank Account Setup | 1,000 – 3,000 |
| Annual Renewal | ~70% of setup cost |
While the setup cost may seem higher initially, the tax and operational savings often outweigh it over time.
9. Is Dubai the Right Move for Every Indian Entrepreneur?
Not always…
If your business relies solely on Indian consumers, Dubai might not provide direct advantages. But for those seeking global exposure, lower taxes, and long-term security, it’s an ideal base.
Conclusion: The Future Belongs to the Borderless Entrepreneur
Dubai is no longer just a luxury destination; it’s a business powerhouse offering Indian entrepreneurs a platform to expand globally with fewer regulatory hurdles.
With its favourable tax laws, Golden Visa programme, and seamless setup process, the question isn’t why Indian businesses are moving to Dubai, but rather when you will take your next step.