Why Are Indian Businesses Shifting to Dubai UAE

Navigating India’s maze of taxes and strict regulations is a challenge for businesses. If you want to do a business in cryptocurrency, Forex trading, or gaming, then get ready for more barriers and tax regulations in India.

But do not dissuade such huge taxes and laws from launching your business dreams! So, if the business prospects in India seem to dwindle, setting up a company in UAE freezone is the best option for you.

As per the Dubai Chamber of Commerce Report, In 2022, around 5,000 businesses owners, freelancers and traders shifted their business to UAE, and Dubai has become a business hotspot, 100% foreign ownership, offering zero taxes, no restricting investor visa, hassle free foreign remittance from bank account, a welcoming environment and access to the global market. It’s no wonder it’s at the top of the list of companies looking to expand or relocate.

Furthermore, it is expected that shifting business from India or establishing new businesses in UAE will grow by 15-20% in upcoming years.

So what are the major reasons that Indians are shifting to UAE at a high speed pace and registering companies in Dubai UAE. Let's dive in and understand one by one.

Why Indians are Looking to Register Company in UAE

As Dubai emerges as a global business hub, many Indian businesses are shifting their operations for these 7 reasons.

Tax Benefits

UAE freezone is known for its tax-friendly nature, attracting Indian businesses. The UAE does not levy personal income tax and imposes low corporate tax rates at 9% beyond annual income of AED 3,75,000, thereby reducing operational expenses significantly.

Furthermore, if you buy and sell real estate in the UAE then you do not need to pay capital gain tax on sale of property.

This financial benefit of being a "tax haven" makes Dubai an attractive place for any business looking to increase profits and opportunities for reinvestment.

Strategic Location

Dubai's location is prime. It connects the continents of major global markets— Asia, Europe, and Africa. World-class infrastructure and transport hubs allow businesses easy access to international trade routes. This facilitates faster and more cost-effective logistics.

For Indian companies looking to expand their global reach, this geographic advantage becomes key.

Business-Friendly Policies

Businesses in the UAE are supported by a few simple regulations, free zones, and special incentives for specific sectors wherein 100% foreign ownership is allowed.

Such business facilitation in Dubai is made together with easy licensing of Indian entrepreneurs to scale their operations and make the most of growth opportunities sans any bureaucratic obstacles specially business related to cryptocurrency, forex trading, gaming industry.

International Business Transactions

Trying to manage international businesses from India can be cumbersome. The government may not easily allow funds to be remitted outside the country, and you need quite a few documents.

For instance, you may need to deduct and deposit TDS (Tax Deducted at Source), pay GST (Goods and Services Tax) under the reverse charge mechanism, Obtain Form 15CA for foreign remittance, FEMA or ODI compliances for foreign investment coming outside India. This can also apply to international payments made from India.

However, in Dubai, you have a free and open environment for international payments. Free from all India complex regulatory matrices.

Credibility and Branding

When you establish your company in UAE, a strategic and respectable location, it gives you instant credibility and prestige. This is valuable when you are to attract new clients and investors. Dubai can address significant international reach, quality and innovation.

Real Estate

Dubai's rising property prices day by day present an opportunity for Indian entrepreneurs to profit from future sales as the market grows i.e tax free. Rental yields in Dubai are also significantly higher than in India, offering strong returns.

Along with company registration in UAE, owning property through a company structure may provide tax advantages, enhancing the overall investment value.

Stable Economic Environment

Dubai offers a stable economic climate, ensuring a secure environment for business growth. The UAE's robust legal framework pro-business government policies and a diversified economy, make Dubai an attractive destination for long-term investments.

Conclusion

The attractive tax policies of Dubai, strategic location, business-friendly environment, and stable economy make it a prime destination for Indian entrepreneurs. UAE offers Indian businesses a gateway to global expansion and long-term growth in a secure and prosperous market. The first step towards how to register company in UAE starts with E-StartUp India.