Open Dubai Free Zone Company for Indian & NRI Entrepreneurs

How to Open a Free Zone Company in Dubai from India: A Step by Step Guide for Indian Entrepreneurs

Dubai’s booming economy, tax benefits and world class infrastructure has made it a top choice for Indian entrepreneurs looking to expand globally. If you are looking to expand your business internationally, opening a Free Zone company in Dubai from India is a very strategic and profitable move.

This guide will walk you through the step by step process, benefits, legal requirements and transparent costs involved in Free Zone company formation in Dubai specifically for Indian nationals.

Why Indian Entrepreneurs are Choosing Dubai Free Zones for Global Business Expansion

Dubai’s Free Zones are designed for international investors, here’s why they are particularly attractive to Indian business owners and NRI entrepreneurs:

• 100% Foreign Ownership: A game changer for Indian investors, you can have full control over your Dubai company setup as per UAE Cabinet Resolution No. 16 of 2020. No local partner required!
• 0% Personal Income Tax: Maximize your earnings with tax free income in the UAE.
• 9% Corporate Tax with High Threshold: Corporate tax of 9% applies only if profits exceed AED 375,000 (approx. ₹85 lakhs*), as per Federal Decree-Law No. 47 of 2022. Below this it’s 0% – a big tax benefit for small and medium Indian businesses.
• Full Profit Repatriation: Enjoy the freedom to repatriate 100% of your profits back to India without any restrictions or capital gains tax in the UAE.
• No Local Sponsor Required: Simplified business registration in Dubai eliminates the need for a local Emirati sponsor in Free Zones.
• Simplified Remote Company Setup: Many Free Zones offer streamlined process for online company registration in Dubai, you can start the setup from India.
• UAE Residence Visa Opportunity: As a Free Zone company owner you can apply for UAE residence visa for yourself and your family along with opening a corporate bank account in Dubai. This opens doors for easy travel and business operations.
• Access to Global Markets: Position your Indian business in Dubai to leverage its strategic location for trade with Middle East, Africa and Europe.
• Strong Legal Framework: Benefit from a robust and transparent legal system that protects foreign investments in Dubai.
• Note: Exchange rates are approximate and subject to market fluctuations.

Which Dubai Free Zone is Best for Indian Business Setup?

Dubai has over 30 Free Zones, each with its unique benefits. Here are some of the most popular among Indian businesses, offering various Dubai business license options:

Choosing the right Free Zone depends on your specific business activity in Dubai and strategic goals.

Step-by-Step Process to Register Your Dubai Free Zone Company from India

The process for company registration in Dubai for Indians is designed to be efficient. Here’s a simplified guide:

Step 1: Choose Your Business Activity & Free Zone

Identify your core business model (e.g., IT consultancy, e-commerce, general trading, digital marketing, manufacturing) and select the most suitable Free Zone accordingly. Consider your UAE business goals and budget.

Step 2: Reserve Your Trade Name

Submit 3–5 business name options to the Free Zone authority. The name should:

Not be offensive

Clearly reflect your business type in Dubai

Be available and not already registered (check availability online)

Step 3: Submit Documents & Apply for Initial Approval

Most Free Zones accept scanned documents for initial approval, making the Dubai company formation process simpler. Common requirements include:

• Passport copy of all shareholders (valid for at least 6 months)
• Passport-sized photographs (white background)
• Detailed business plan (required for certain regulated activities)
• Completed application form

Step 4: Sign License Agreement & Office Lease

You have flexible office solutions:

• Flexi-desk: Low cost shared workspace for startups
• Shared Workspace: Collaborative office environment
• Dedicated Office: Private office space for growing teams

Some Free Zones also offer virtual offices in Dubai for initial setup, providing a Dubai business address without physical presence.

Step 5: Receive License and Registration Documents

After approval and payment, you will receive your Dubai business documents:

• License
• Certificate of Incorporation
• Memorandum & Articles of Association (MoA)
• Share Certificate

Step 6: Open a Corporate Bank Account in UAE

This is mandatory for your Dubai business. Required documents typically include:

• License
• Memorandum & Articles of Association (MoA)
• Passport copies of all shareholders and authorized signatories
• Proof of address (from India, e.g., utility bill)
• Board resolution (if corporate shareholder)
• Bank statements from India (personal/company)

Step 7: Apply for UAE Residence Visa (Optional)

If you want to reside in the UAE and manage your Dubai business fully. You can apply for your own visa and sponsor your family or employees. The process includes:

• Entry Permit
• Medical Fitness Test
• Emirates ID application

Documents Required to Register a Dubai Free Zone Company from India

Have these documents ready for a smooth Dubai company setup:

• Valid passport copies of all shareholders (and managers, if different)
• Passport-size photos with white background
• Business plan (if applicable, especially for regulated sectors)
• Visa copy (if already a UAE resident)
• Address proof (from India, e.g., recent utility bill or bank statement)
• No Objection Certificate (NOC) from sponsor (if already employed in UAE)

Note: All documents issued outside the UAE (e.g., Indian passports, address proofs) may need to be notarized and attested by the relevant authorities in India and then by the UAE Embassy in India, followed by the Ministry of Foreign Affairs in the UAE. Your business setup consultant can guide you through this document attestation process.

Pros & Cons of Registering a Free Zone Company from India

Understand these points to make an informed decision for Indian entrepreneurs:

✅ Pros:

• Full Foreign Ownership: Complete control over your Dubai company
• Lower Setup Cost (Compared to Mainland for specific structures): Initial packages are often more affordable, especially with Flexi-desk options
• Fast Licensing: 3–7 business days to get licensed
• Ease of Business: Simplified regulations and process
• Access to Talent: Can hire international talent easily

❌ Cons:

• Cannot do Business in UAE Mainland (Directly): Free Zone companies cannot do business directly with mainland market without a local agent or a mainland branch
• May need Local Distributor: To trade directly in UAE mainland, you may need to appoint a local distributor or open a branch in Mainland UAE
• Annual Renewal Costs & Compliance: Annual renewal fees and ongoing compliance requirements (e.g., ESR, VAT filings)

Legal & Regulatory Aspects for Your Dubai Business

Stay compliant with UAE laws to ensure your Dubai Free Zone business survives:

Corporate Tax Law (Federal Decree-Law No. 47 of 2022): Free Zones are taxed 9% on qualifying income if profit exceeds AED 375,000. Understand the qualifying income criteria

Economic Substance Regulation (ESR): Mandatory for certain activities (e.g., banking, finance, shipping, holding companies) to show genuine economic activity in UAE. Compliance is key to maintain your tax residency

Anti-Money Laundering (AML): Strict compliance is required especially if your business handles funds or customer data. UAE is committed to fight financial crime

UAE VAT Law (2018): Register for VAT if your annual turnover exceeds AED 375,000 (approx. ₹85 lakhs). Ensure proper VAT registration and filing for your Dubai Free Zone company

Why Flyingcolour Business Setup for Your Dubai Venture?

We help Indian entrepreneurs set up their companies in Dubai’s Free Zones—from paperwork to post-license support. As a Dubai business consultant, we understand the Indian investor’s perspective.

What We Offer for Your Smooth Transition from India to Dubai:

• Free Zone Selection Advisory: Recommendations based on your business activity, budget and goals
• Trade License Registration: Smooth processing across all major Dubai Free Zones
• UAE Visa and Emirates ID: Comprehensive support for your residence visa and family sponsorship
• Corporate Bank Account: Guidance on the UAE banking process for your company
• Document Attestation & Translation: Handling all legalizations for your Indian documents
• Post-Setup Tax & Compliance: Ongoing support for corporate tax, VAT and ESR
• Our multilingual consultants ensure your entire journey—from India to Dubai—is hassle-free, quick and cost-effective and make your Dubai business dream a reality.

FAQs – Free Zone Company in Dubai from India

Can I open a Dubai Free Zone company without visiting UAE?

Yes, many Free Zones allow remote company formation in Dubai with notarized and attested documents, perfect for Indian investors.

Is local sponsor required in a Dubai Free Zone?

No, Free Zones offer 100% foreign ownership, no need for local Emirati partner or sponsor.

Can I run the business from India after setting up in Dubai?

Yes, you can manage the company remotely. But you need to visit Dubai for visa stamping if you apply for residence visa.

What if I want to do business in Mainland UAE?

To do direct business in Mainland UAE, you need to appoint a local distributor/agent or open a branch of your Free Zone company in Mainland UAE. Your consultant can advise on the best Mainland company setup options.

Is Golden Visa available for Free Zone business owners?

Yes, depending on the capital investment, business size and specific criteria, Indian business owners in Dubai can get 5 or 10 year UAE Golden Visa.