How to Set Up an Indian Subsidiary Company in Dubai Mainland

Dubai is a global business hub and has become an attractive option for Indian companies looking to grow. If you are looking for setting up an Indian subsidiary company in Dubai Mainland, it offers numerous advantages, including access to a vast market, strategic location, and favorable business environment. This article will take you through all of the necessary processes for Dubai company setup, covering everything from documentation to compliance.

What is a Subsidiary Company?

An independent legal entity that is fully owned or managed by its parent corporation is known as a subsidiary. Although it runs as an independent firm, it frequently follows the rules and strategic plans of the parent company. There are many benefits to establishing a subsidiary in a foreign market, including better access to the market, local presence, and possible tax advantages.

Understanding Indian Subsidiary Company in Dubai

An Indian subsidiary company in Dubai Mainland is a separate legal entity that is wholly or partially owned by an Indian parent company. This structure allows Indian businesses to extend their operations, enter new markets, and take advantage of Dubai’s financial advantages.

Key Benefits of Setting Up an Indian Subsidiary in Dubai Mainland

• Strategic Location – Due to its advantageous location at the junction of Europe, Asia, and Africa, Dubai offers great connectivity and easy access to an extensive market.

• Favorable Business Environment – Dubai provides a transparent legal system, effective infrastructure, and a business-friendly atmosphere with less bureaucracy.

• Tax Benefits – Dubai is a desirable location for enterprises due to its competitive tax system and lack of corporate income tax. 

• Access to Free Trade Zones – Dubai boasts several world-class free trade zones, such as Dubai World Trade Centre (DWTC), Jebel Ali Free Zone (JAFZA), and Hamriyah Free Zone, offering various incentives and benefits for businesses.

• Ease of Doing Business – The UAE simplifies the company formation procedure and regularly scores well on international ease-of-doing-business indexes.

Documents Required for Setting Up a UAE Subsidiary Company

To successfully register your subsidiary, you will need –

• Copies of passports of all shareholders and directors
• A No Objection Certificate (NOC) if applicable
• Company registration documents from the parent company
• Lease agreement or Ejari certificate for office space
• Initial approval from DED

Steps Involved in Setting Up an Indian Subsidiary in Dubai Mainland

1. Conduct Thorough Research

• Analyze the market potential and competitive landscape in Dubai.
• Decide which business activity is best for your subsidiary.
• Understand the legal and regulatory requirements for business setup in Abu Dhabi and Dubai Mainland.

2. Determine Your Business Scope

It is important to clearly define the specific activities you intend to conduct in Dubai. This will help you choose the right licensing body and comply with relevant regulations. Consider some elements like the business concept, product or service offers, and target market. 

3. Choose a Suitable Legal Structure

Among foreign investors in Dubai, limited liability companies (LLCs) are the most popular legal form. This arrangement provides flexibility in both ownership and leadership as well as restricted liability. However, depending on your specific business needs, other options such as a Public Limited Company (PLC) or a Sole Proprietorship may be more suitable.

4. Select a Distinctive Company Name

Choosing a unique and appropriate company name is a vital step in the establishment process. The name must comply with local naming conventions, avoiding any terms that are misleading, offensive, or infringe on existing trademarks. A well-chosen name not only reflects your brand identity but also ensures that your business can operate without legal complications related to intellectual property.

5. Obtain Initial Approval

Once you have defined your business activities and selected a name, you’ll be required to submit your company plan and application for early consent to the Department of Economic Development (DED). The DED will review your application to ensure that your proposed business aligns with Dubai’s economic objectives. Obtaining this initial approval is a significant milestone, as it confirms that you can proceed with the registration process for Dubai company setup.

6. Secure Necessary Visas

If you plan to employ foreign workers, securing the required work visas and residency permits is essential. It’s best to plan ahead because the visa application procedure might take a long time and may call for multiple papers. It is better to ensure that you have the necessary approvals before starting operations to streamline your business setup and minimize disruptions.

7. Open a Corporate Bank Account

It is crucial to open a corporate bank account in the UAE with a nearby bank in order to manage the funds of your company. A local bank account facilitates transactions, helps maintain proper financial records, and ensures compliance with local regulations. Choosing a bank that provides services specific to your company’s requirements can streamline financial transactions and improve your overall Dubai business experience.

8. Arrange a Suitable Office Space

Rent or lease office space in Dubai to establish a physical presence. The location of your office should be strategically chosen to cater to your target market and facilitate your business operations.

9. Register Your Subsidiary

The Department of Economic Development (DED) registration is the last stage in establishing a subsidiary company in Dubai. This involves getting the necessary permits and licenses, paying registration fees, and submitting the required paperwork.

What is the Cost of Setting Up a Subsidiary Company in Dubai?

The cost of establishing a subsidiary varies depending on numerous criteria,

including –

• Type of business license in Dubai required
• Office space rental costs
• Visa costs for employees
• Additional fees for legal services and documentation

On average, startup costs can vary, but it is recommended to get in touch with Start Any Business experts to know more about the cost of setting up a subsidiary in Dubai.

Considerations for Different Emirates

While this guide focuses on Dubai, it’s essential to recognize that each emirate has its own regulations regarding company formation –

• Business Setup in Abu Dhabi – The capital offers various incentives and is known for its strong economic base for certain sectors.

• Company Formation in Sharjah – Sharjah is recognized for its cost-effective setup options and proximity to Dubai which makes it an excellent choice for businesses.

• Business Setup in Ajman – Ajman offers low-cost registration  and operational costs options, making it attractive for startups.

• RAK Company Formation – Ras Al Khaimah provides favorable conditions for offshore companies with minimal taxes, which attracts customers worldwide.

• Fujairah Company Setup – Fujairah is ideal for businesses focused on shipping and logistics due to its port facilities.

Final Steps for Your Dubai Venture with SAB India

Once all documentation is prepared and approvals are secured –

1. Finalize your business license application with DED.
2. Open your corporate bank account.
3. Begin operations by hiring employees and launching marketing initiatives.

By following these steps, you can successfully navigate the process of establishing an Indian subsidiary company in the Dubai mainland. With its favorable business environment and strategic location, Dubai offers immense potential for growth and expansion.

For more assistance with your Dubai company setup or inquiries about business setup in Abu Dhabi, Sharjah, Ajman, RAK Company Formation, or Fujairah Company Setup, consider consulting with business setup experts like SAB India who specialize in facilitating smooth transitions into the UAE market.

Also Read: Offshore Company Formation in Dubai For Indian Citizens: What Things To Consider