Why do so many Indian business people setup their company in the UAE?

The UAE is an extraordinarily popular location for Indian business people setting up and operating a company. A straightforward setup process, welcoming business culture, and vast opportunity to tap into the Middle Eastern market make it a clear choice.

But that’s not all. Indian businesspeople could be looking at making considerably more money for the same output, given the UAE’s excellent tax situation. 

Let’s explore all five reasons the UAE makes such an exceptional business hub – so you can decide whether you should follow suit.

1. Ease of setup

The UAE offers 40+ free zones where Indian businesspeople and other foreign nationals can easily set up businesses and repatriate profits.

Your first question, if you’re considering setting up your business in the UAE, is how easy is the process? Some countries make establishing a business difficult for foreign nationals, with prohibitive laws on company ownership or profit repatriation.

The UAE, on the other hand, offers over forty free zones that are ideal for international businesspeople. These free zones allow foreign national business ownership and 100% profit repatriation, as well as extensive tax breaks.

This means you can easily set up business in the UAE if you’re an Indian national (or wherever you’re from) and send money home as well.

2. Ease of doing business

The UAE is ranked 11th for global ease of doing business – which makes the UAE an exceptional environment for international entrepreneurs.

True, setting up a company in the UAE is easy. But businesspeople need to look beyond setup, towards the company’s future. If the location you choose isn’t optimum for conducting business, you’ll likely regret your decision.

Luckily, the UAE resoundingly ticks that box. The UAE is ranked 11th on the World Bank’s Global Ease of Doing Business report, out of 190 scored countries. Even more impressive, the UAE actually ranks first in the MENA region. (That’s compared to India, which has improved significantly over the years but still falls behind the UAE, with a 2019 ranking of 77th).

Plus, the UAE government is dedicated to making the UAE an international entrepreneur-friendly zone, with ongoing support and initiatives aimed at startups and SMEs in the region.

This means it’s extremely easy for Indian businesspeople to conduct business here – easier than home. You will find the UAE a welcoming and encouraging environment, both for your business and family.

3. Access to vast international markets

The Middle East offers a huge opportunity for potential businesspeople, who move here to tap into more consumer markets from the Middle East, Africa, Europe and the rest of the world.

One big reason so many Indian businesspeople choose the UAE is the business opportunity here. The Middle East is one of the world’s fastest growing markets, with a high proportion of affluent young consumers.

In fact, some 40% of the Middle East’s population is under 25. Dubai in particular is a global hub, with vast profit potential for smart businesspeople.

This means the opportunity is vast – and there’s no better way to tap into that market than locate your company here, right at the heart.

The UAE is also exceptionally well located for international business, with top-tier travel connections across the world. Whether you’re looking to conduct business locally, globally or a combination of both, the UAE is a fantastic choice. You could even locate your business in the UAE but travel back and forth to India with ease.

4. High quality of life in the UAE

The UAE offers an exceptional quality of life that’s attractive to international entrepreneurs who want to secure a happier, healthier, more prosperous future.

When Indian entrepreneurs start a company here, it’s not only business benefits they get. The personal and social implications of setting up business here are significant.

The UAE is ranked 20th on the global Quality of Life Index, for example. That’s third in Asia. The index takes into account the nation’s purchasing power, pollution, house price to income ratio, cost of living, safety, healthcare, traffic commute times and climate.

For entrepreneurs considering moving to the UAE, then, it means your overall quality of life would likely improve significantly.

You would have more money to spend, and it would stretch further. You could buy a house (or houses) more easily. You would feel safer; your family would feel safer. You would have access to a higher standard of healthcare should you need it.

For many of the Indian businesspeople operating from the UAE, those are unmissable advantages.

5. Superior infrastructure

The UAE’s world class infrastructure was highlighted in the Global Competitiveness Report 2017-2018, compiled by the World Economic Forum. It ranked the region 4th for the overall quality of infrastructure, placing it 1st in the road quality index, 3rd for airport infrastructure, and 4th for its seaports.

But Infrastructure isn’t just transport – it’s about telecommunications too. The UAE has developed this sector significantly in recent years. It now has the highest mobile penetration rate in the world, and is developing world-class internet and broadband connectivity.

The UAE powers its world class infrastructure and amenities with a super-efficient electricity grid. This is currently transitioning from gas to nuclear, solar and other renewables in order to substantially reduce carbon emissions.

So if you’re considering setting up a company abroad, the UAE deserves to be on your shortlist. In fact, the UAE deserves to be ahead of the Indian domestic market on your shortlist – as these five points prove.

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