Indian founders can set up a Dubai company on the mainland, licensed by the Dubai Department of Economy and Tourism, or in a free zone such as DMCC or IFZA. Most activities now allow 100% foreign ownership. UAE corporate tax of 9% applies to profits above AED 375,000. Indian residents investing must follow FEMA Overseas Investment Rules, 2022.
Mainland vs free zone
| Factor | Mainland | Free zone |
|---|---|---|
| Market access | Trade anywhere in UAE | Within zone and abroad; mainland via distributors |
| Office | Physical office needed | Flexi-desk options |
| Regulator | DET | Free zone authority |
Setup steps
- Choose activity and jurisdiction.
- Reserve trade name.
- Submit documents and obtain licence.
- Lease office or flexi-desk.
- Apply for visas and open bank account.
Tax in the UAE
Corporate tax at 9% applies above the threshold, with qualifying free zone income eligible for 0% under conditions. VAT at 5% applies above the registration threshold.
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Get expert help →Indian compliance
- ODI reporting through an AD bank under FEMA
- Annual performance report
- Place of effective management and foreign asset disclosures in Indian ITR
Frequently asked questions
Can an Indian resident own a Dubai company?
Yes, subject to FEMA Overseas Investment Rules, which require investment through an AD bank with reporting.
Do I need to live in Dubai?
No, but visas and banking are easier with residency. Tax residency and control matter for Indian tax.
Is a free zone company tax-free?
Qualifying income of qualifying free zone persons can enjoy 0% corporate tax, subject to conditions; other income is taxed at 9%.
How long does Dubai setup take?
Licensing can take days to a few weeks; bank accounts often take longer.
Let Leegal handle your Company Registration Dubai
Documentation, filing and follow-up by a dedicated expert, so you can focus on running your business.
- Dedicated point of contact
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