Setting Up an Indian Subsidiary in Dubai: A Complete Guide
So, you’re considering expanding your Indian business into Dubai? Smart move. Over the past decade, Dubai has become a global hotspot for Indian companies aiming to scale beyond borders. With its investor-friendly business consultants, strong India–UAE relations, and unbeatable tax advantages, Dubai offers Indian businesses the perfect launchpad for international growth.
But what exactly does it mean to establish an Indian subsidiary in Dubai—and why is the UAE such an attractive destination? Let’s break it down.
Why Dubai is the Perfect Choice for Indian Companies
1. Strong India–UAE Bilateral Relations
Thanks to the India–UAE CEPA trade agreement, tariffs are lower, customs are easier, and Indian businesses get smoother entry into UAE markets.
2. Attractive Tax Benefits
Dubai offers 0% personal income tax, no capital gains tax, and 0% corporate tax for many businesses in Free Zones. Mainland companies enjoy a competitive 9% corporate tax only on profits above AED 375,000.
3. Startup & SME Support
Dubai’s Free Zones—like Dubai Silicon Oasis (DSO), Dubai Internet City, and IFZA—offer incubator programs, innovation hubs, and flexible setup options for Indian entrepreneurs.
4. Easier Banking for Indian Businesses
With the right consultancy support, opening a corporate bank account in Dubai is straightforward. Many Free Zones now directly coordinate with banks to simplify onboarding.
5. Trading & Re-Export Benefits
With low import duties and seamless re-export facilities, Indian manufacturers and traders can import from India, store in Dubai, and export worldwide efficiently.
6. Global Trust & Reputation
Having a Dubai-based subsidiary strengthens your global image. International clients and investors see UAE companies as credible, innovative, and strategically positioned.
Understanding the Subsidiary Structure in Dubai
A subsidiary company in Dubai is a fully independent legal entity owned by the Indian parent company.
✔ Operates under UAE business consultants
✔ Has its own assets, liabilities, and contracts
✔ Offers liability protection for the Indian parent company
✔ Can pursue different business activities than the parent
With 100% foreign ownership now allowed in most mainland activities and across all Free Zones, Indian companies enjoy complete control over their Dubai subsidiaries.
Mainland vs. Free Zone Subsidiary
Mainland Subsidiary (Licensed by Dubai DED):
Allows full access to the UAE market
Requires office space (Ejari lease)
LLC is the most common structure
Subject to 9% corporate tax (above AED 375,000 profit)
Free Zone Subsidiary:
100% foreign ownership
Full repatriation of profits
Tax exemptions (incentives vary by Free Zone)
Access to world-class infrastructure
Limited direct access to UAE mainland unless via distributor
Documents Required from Indian Parent Company
To register a subsidiary in Dubai, you’ll need:
Certificate of Incorporation
Memorandum & Articles of Association (MoA & AoA)
Board Resolution approving Dubai subsidiary
Passport copies of directors & shareholders
Certificate of Good Standing (if applicable)
Audited financials (if applicable)
Notarisation & attestation of documents (India → UAE Embassy → UAE MoFA)
Step-by-Step Process to Set Up an Indian Subsidiary in Dubai
Define Business Activity (as per DED or Free Zone list)
Choose Jurisdiction (Mainland vs. Free Zone)
Select Legal Structure (LLC most common)
Reserve Trade Name (must meet UAE naming rules)
Prepare & Legalise Parent Documents
Notarise MOA & AOA (Arabic & English)
Lease Office or Flexi-desk (mainland requires physical office)
Submit Application & Obtain Trade License
Open Corporate Bank Account in UAE
Apply for Investor & Employment Visas
Cost of Setting Up an Indian Subsidiary in Dubai
Mainland License: AED 15,000–20,000
Free Zone License: AED 10,000–25,000
Office Space (Flexi-desk): from AED 6,000/year
Visa & Emirates ID: AED 3,000–7,000 per person
Why Partner with Legallands for Your Subsidiary Setup?
At Legallands, we simplify the process of establishing an Indian subsidiary in Dubai from start to finish.
We assist with:
Business structuring & jurisdiction selection
Document attestation & legalisation
Licensing & trade name approvals
Office space & corporate bank account setup
Visa processing & compliance under UAE tax business consultants
With our expertise, you can focus on scaling your business while we handle the legal and regulatory framework.
Thinking of expanding your Indian business into Dubai? Legallands is your trusted partner for company incorporation, legal compliance, and smooth business setup.
FAQs
1. Can an Indian company fully own a subsidiary in Dubai?
Yes, 100% ownership is allowed in most mainland activities and all Free Zones.
2. How long does it take to register a subsidiary?
Typically 7–15 working days, depending on jurisdiction and document readiness.
3. What is the difference between a branch and a subsidiary?
A branch is not legally independent, while a subsidiary is a separate entity with its own assets and liabilities.
4. Can I open a corporate bank account for my subsidiary?
Yes, once licensed. Legallands assists with streamlined banking solutions.
5. Which is better—Mainland or Free Zone?
Choose Mainland for local market access.
Choose Free Zone for lower setup costs, 100% repatriation, and tax benefits.
