VMPL
Dubai [UAE], October 9: Ten years ago, an Indian entrepreneur opening a company in Dubai was usually a trader with family already in the city. Today, software founders from Bengaluru, exporters from Gujarat, consultants from Mumbai and second-generation business owners from Delhi are all setting up in the emirate, and many of them never plan to move here full time.
Avyanco, a Dubai-based corporate services consultancy, says most Indian clients now want one well-regulated company that serves customers in the Gulf, Africa, Europe and India.
The numbers behind the move
Official figures show how strong the trend has become. Dubai Chamber of Commerce reported that 18,486 Indian-owned companies joined as new members in 2025, roughly one in every four new members that year and more than any other nationality. Another 7,579 joined in the first half of 2026, taking the number of active Indian members to 85,841 by June.
Trade has grown alongside them. Non-oil trade between Dubai and India was worth AED 222.5 billion in 2025, against AED 94.2 billion in 2016.
"What has changed is ambition," said Jashvantkumar Prajapati, CEO and Founder of Avyanco. "Indian clients now arrive with a plan for three or four markets. They see Dubai as the place to hold contracts, manage payments and build a team that can travel anywhere in a few hours. For them, moving into Dubai is a strategic decision, not a lifestyle one."
What draws them here
Prajapati says the same reasons come up in almost every first meeting with an Indian client.
A currency that holds its value. The UAE dirham has been pegged to the US dollar for decades. For founders who trade in dollars, that means far fewer exchange-rate losses eating into their margins.
Low corporate tax, and sometimes none. UAE corporate tax is 9% on taxable income above AED 375,000, and small businesses with revenue of up to AED 3 million can claim Small Business Relief until the end of 2029. Trading companies that buy and sell goods between other countries may go further. A business set up in a free zone, often a designated zone, can qualify for a 0% rate on qualifying income if it meets the conditions for a Qualifying Free Zone Person.
No tax held back on payments abroad. Indian business owners raise this point most often. At home, many payments sent overseas, whether to a supplier or for an investment, attract tax collected at source (TCS) or tax deducted at source (TDS), which can reach 20% on some categories. A UAE company pays suppliers and investments abroad without any withholding tax, so the full amount reaches the other side.
No personal income tax. Salaries and dividends paid to individuals in the UAE are not subject to personal income tax.
Safety and a stable base. Dubai regularly ranks among the world's safest cities. Founders who bring their families say that matters as much as any tax rate.
Then there are the practical ties. Dubai is a short flight from most Indian cities and 90 minutes behind India Standard Time, and the UAE-India Comprehensive Economic Partnership Agreement, in force since May 2022, has cut tariffs on a long list of goods.
What Indian founders are setting up
Dubai Chamber's breakdown for the first half of 2026 shows that 45% of new Indian member companies work in trade and services, 27.3% in real estate, leasing and business services, and 19% in construction.
The India side matters too
Advisers warn that the UAE paperwork is only half of the job. Indian residents who invest in a company abroad must still follow India's overseas investment rules, and the tax advantages above depend on where the founder actually lives and where the company is genuinely managed.
"We see founders treat the UAE company and their Indian compliance as two separate projects, and that is where problems start," said Dhirendra Khadka, Business Development Manager for Tax and Company Formation at Avyanco. "Company registration in Dubai is straightforward if the documents are ready. The harder questions are about how money moves between the two countries, who holds the shares and where profits are taxed. We ask every Indian client to bring their chartered accountant into the conversation early."
How Avyanco helps
Most Indian clients complete the process without relocating. Through a power of attorney, Avyanco handles the trade name, licence and incorporation documents while the founder stays in India. A short visit is usually needed only for the Emirates ID biometrics.
For first-time founders, the firm offers an end-to-end package priced at AED 10,499. It covers the trade licence and Memorandum of Association, a flexi desk for the registered address, the establishment card, investor visa, biometrics and Emirates ID, bank account opening support, and corporate tax registration with ongoing assistance. Each client is assigned a dedicated relationship manager, and a pick-up and drop-off service is provided for appointments during the visit.
"Indian founders are practical. They want to know the total cost, the timeline and who to call when something gets stuck," Prajapati said. "Our job is to make international company formation feel as simple as opening a branch in another Indian city, and to make sure the company is built properly from the first day."
Founders can request a written breakdown of the package before they commit. Guidance on business setup in Dubai is available on the firm's website.
About Avyanco
Avyanco is a Dubai-based corporate services consultancy that has supported more than 11,500 businesses since 2020. It helps entrepreneurs form and run companies across the UAE's mainland and free zones and in selected jurisdictions abroad, including India, the United Kingdom, the GCC, the United States and Singapore. Its services cover licensing, visas, corporate tax and VAT, accounting, audit and compliance.
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