Why Dubai is lucrative for investments to Indian traders and startups
Reasons Why Dubai’s Golden Visa is Attracting Indian Traders and Startups
Dubai has been one of the most attractive foreign shore for Indian traders and startups. The popular benefits in terms of taxation polices and advanced infrastructural setup have made this region a lucrative option for Indians and people all over the world.
According to the Henley Global Citizens Report, at least 8,000 super-rich Indians were expected to migrate out of India in 2022 and their top two preferred destinations were Dubai and Singapore.[i] The golden visa offered by UAE has seen some of India’s greatest talent move to the UAE.
Earlier this year, Sheikh Mohammed bin Rashid Al-Maktoum, unveiled the Dubai Economic Agenda, known as “D33” The 32 trillion dirhams ($8.7 trillion) plan aims to double the size of Dubai’s economy in the next decade and consolidate its position among the top three global cities. Here are the top reasons why Dubai has become the premier choice for Indians.
1. Tax-Friendly Policies
One of the biggest reasons for Dubai becoming the preferred economic hub is the friendly taxation policy. In India, income over INR 1,500,000 has a flat tax rate of 30% which can also reach 40%. Additionally, long-term capital gains taxes are between 10 to 20%. This can lead to massive income depletion for startups.
On the other hand, personal income tax in UAE is nil. The UAE introduced a federal corporate tax from June 2023. However, it is a mere 9% for income exceeding 375,000 UAE dirhams. Further, all businesses in the free zone areas will be tax-free as long as they meet the stipulated conditions. A business setup consultant in Dubai can help you with all the required legalities and regulations.
2. Digital Assets Regulation Policies
An increasing number of people have been shifting to cryptocurrencies and digital wallets. For the longest time, the Indian government did not recognise digital currency. Then in 2022, a whopping 30% tax was announced on income generated from cryptocurrencies along with an additional 1% charge on the sale of digital assets exceeding INR 50,000. These regulations as opposed to UAE’s investor friendly policies make the country very attractive to Indians.
3. Long-Term Residential Visa
The ever-attractive golden visa offers a permanent residence of up to 10 years in the UAE. Company formation in UAE is easy and startups registered as SMEs receive 100% of business ownership with taxes only applicable to their corporate income and not personal income. Further, people and students in varying fields of science, art, and more can live in the UAE without a national sponsor and further their professional growth in this thriving region.
4. Access to Global Talent
Dubai’s connectivity makes it a thriving hub of trade and activity. Businesses looking to expand their global presence can easily establish a setup here. Further, it is also easier to attract a global employee base thanks to a diverse population and tolerant social environment.
5. Better Infrastructure
Dubai offers top-class infrastructure which makes it easier to hire and retain talent. India’s hubs for startups don’t only face regulatory concerns but also infrastructural problems. Everything from high rent, poor traffic conditions, and lack of office infrastructure make it difficult to retain talent here.
Conclusion
Dubai offers numerous advantages for traders and startups. From favourable tax policies to better working conditions, an increasing number of Indians are shifting to Dubai to further their professional growth.
