As the second wave of COVID-19 pandemic hit India badly, a great number of Indians have decided to invest in or migrate to Dubai. Indian investors, especially the high-net-worth individuals (HNIs), view the process of business setup in Dubai as highly attractive due to specific reasons including 100% foreign ownership in mainland firms, Golden Visa, Visa on property investments, UAE citizenship and the recent National Policy for Coding professionals & digital entrepreneurs. The defensive wall erected by the government in the form of vaccines to drive off the pandemic is also cited as a major reason Indian investors making Dubai their second home.
Indian investors who are planning to migrate to a lucrative business turf would like to know what Dubai can offer. This article deals with everything that makes Dubai a post-pandemic investment destination for Indian investors. Read ahead.
The Allure of Visa on Property Investment
Reports suggest that cash-rich Indian businessmen are inclined towards premium properties in Dubai such as Palm Jumeirah and Downtown Dubai as buying properties come with the benefit of long-term residency visas. Mahmoud AlBurai, the senior advisor to the Dubai government, tweeted recently that Indians invested AED 6 billion in 2021. In comparison with this, UK investors invested only AED 2.9 billion and Chinese investors AED 1.4 billion.
The minimum amount of property investment to obtain a residency visa is AED 1 million ( around 2 crores in INR). This amount is more affordable for Indian investors compared to the minimum amount to obtain residency visas in Portugal and Spain. Moreover, it would take only 3.5 hours of flight journey from Mumbai to Dubai. The hassle-free to and fro commute makes it easier for the Indians to manage their business and investments in Dubai.
New Ownership Law Permits 100% Ownership
Before 2021, foreign investors were not granted full ownership of their companies established in Dubai mainland. Foreign investors needed to find a UAE national to serve as the Local Sponsor. This Local Sponsor was entitled to holding at least 51% of the shares in the company while the foreign owners will get only 49% of shares. This single legal impediment eclipsed all other benefits associated with the process of business setup in Dubai mainland for a long time.
From June 2021, the ownership requirements changed, and it is now possible for Indian investors to set up a Limited Liability Company (LLC) in Dubai with a single shareholder. Many existing LLCs owned by Indians have changed into a 100% ownership structure since the rollout of the new regime. Investors can seek advice from business setup consultants in Dubai for incorporating a company with full ownership.
Golden Visas to Spur Investments
Of late, the UAE Golden Visas have garnered much attention as the government granted it to a large number of investors and professionals. The Golden Visa provides long-term residency ( 5 and 10 years) to people of classes such as investors, entrepreneurs, individuals with outstanding talents such as researchers, medical professionals and those within the scientific and knowledge fields, and remarkable students. Obtaining a UAE Golden Visa is the easiest path to live, work and study in the UAE without a national sponsor.
A Golden Visa makes it easier for investors to commence the process of business setup in Dubai with full ownership and other related benefits. Investors with a Golden Visa can travel to the UAE even when COVID-related travel restrictions are imposed in their countries of origin. A lot of Golden Visa holders availed this exemption while a travel restriction exists between the UAE and India due to COVID-19. The Golden Visa can also act as a precursor to gain eligibility for UAE citizenship. Investors need to meet certain conditions to obtain a Golden Visa for which business setup consultants in Dubai can offer advice.
National Policy for Tech Firms & Coders
The UAE recently announced a National Policy for Digital Companies to bolster its digital economy. As part of the policy, the government will grant up to 100,000 golden visas to entrepreneurs, enterprise owners, start-ups and professionals who are well-versed in coding. The move is aimed at attracting new talent to the UAE technology industry. Indians view the new announcement as a positive development as the country has a highly diversified pool of tech talent in areas such as analytics, data science, core technology and e-commerce.
Since India has more than enough well-skilled tech professionals and Dubai is closer to home, the new policy for digital firms could attract a lot of Indian tech professionals. Senior professionals and entrepreneurs from an emerging market like India will find the excellent infrastructure, quality of life and strategic location of the UAE attractive. This would also open up a new landscape of business setup in Dubai for India’s small-to-mid-sized technology firms who until now have used the region for demand generation rather than product development. Business set up consultants in Dubai will help the entrepreneurs with the legal know-how required to shifter their base.
Amp up your Investments with Jitendra Business Consultants
The post-pandemic period has forced Indian businessmen and investors to rethink their strategies as their home country struggled to contain the ill effects of the pandemic. The shortage of vaccines, weakening health infrastructure, and the ongoing lockdowns forced the Indians to seek new avenues of investment and company formation. Fortunately, a set of new reforms made the environment of business setup in Dubai highly attractive for the Indian entrepreneurs and investors.
As Dubai emerged as the most preferred post-pandemic investment destination, Indians have begun to explore the benefits offered by the region. The assistance of business setup consultants in Dubai has become essential for Indian investors to make the right legal choices. For instance, choosing the right options of company formation in Dubai such as free zone, offshore and mainland requires a high degree of meticulousness and market knowledge. This is where company formation specialists such as Jitendra Business Consultants (JBC) comes in handy for the investors. JBC’s team will help the entrepreneurs with requirements such as visa processing, document clearance, labour and immigration approvals, bank account opening etc.