May 03, 2019 0

Do You Need A Local Business Partner In Dubai?


For many Indian entrepreneurs looking to setup a business in the UAE, there is a lot of confusion that they face in the beginning. There are several different types of companies that can be setup in the UAE. As an outsider, you are not cut on any slack to miss out on some nuances of this complex process. Particularly, when you need to collaborate with local business partners in Dubai you need to have the right information about it.

Do you really need local business partners in Dubai? To answer this question, you need to establish the purpose of your business in the UAE and whether or not it will be established in one of the many free zones in Dubai. There are two main factors that help to determine if you need local business partners in Dubai. For example, if you are looking at setting up a professional services company, you can have 100% ownership without the need for a partner. The same applies to businesses that are established in Dubai’s free zones.

However, these options do not suit everyone and therefore, it is imperative that Indian entrepreneurs must set up their business with the help of a local partner. If your business falls under the purview of industrial licenses, unless it is a free zone, you must register for an LLC (Limited Liability Company). For this purpose, you would require a local partner who will hold the majority of the stake in the business. But there is nothing to worry about because your business ownership will still lie with you.

Some factors for your consideration:

1. If you want 100% ownership of your business outside the free zone then establishing professional services is the only way to do it. While you do not require a local form of residency or ownership, a local agent is required to set up the business in the form of local business partners in Dubai. They receive fees for their services in exchange. Professional services are usually favoured by people who need a local presence in Dubai, like restaurants and other service-oriented businesses.

2. Free zones are another way for Indian entrepreneurs to retain 100% ownership of their business. The UAE government has established dedicated free zones to encourage foreign nationals to set up their business in the UAE. Most of the free zones are located in Dubai. In free zones, a business is eligible for 100% exemption for personal and corporate tax. Apart from that, they can enjoy several other benefits, like open bank accounts and duty-free services. However, there is a caveat you should be aware of – a business operating in the free zone cannot directly trade with the local market without the help of local business partners in Dubai.


There are several benefits of having local business partners in Dubai. However, it all depends onthe contract and agreement with your local partner. Indian entrepreneurs are still able to reap 100% profits through local partnerships. Even if the partnership is agreed upon, the profit sharing is minimal. However, it is best to get a consultant on board who can advise and recommend the way forward when you want to relocate your business to Dubai or establish a new venture. These consultants are approachable, and work wonders in helping you through the company formation work as they know the matter in and out.