India entry from the UAE — for Gulf companies, founders and NRIs

Last reviewed: October 2026 · Reviewed by CA Regi Tom Antony, Regi Tom Antony & Associates.

A) UAE & Gulf companies setting up in India

A UAE company wholly owned subsidiary in India is the usual vehicle for a Dubai or Gulf business that wants to hire locally, invoice in rupees and hold Indian contracts. A branch, liaison or project office may suit specific activities under the applicable FEMA establishment regulations, while a joint venture shares ownership with an Indian partner. Compare subsidiary vs branch vs liaison vs project office and wholly owned subsidiary in India. The attestation and treaty details below are UAE-specific; a parent in another Gulf country must check its own document and treaty position.

1. 1

   Confirm sector and vehicle

   Check the FDI cap, route and investor eligibility for your activity, and choose subsidiary, branch, liaison/project office or JV.

2. 2

   Attest UAE documents

   Trade licence, board resolution and director identity/address proofs are notarised, attested by the UAE MOFA and the Indian mission in the UAE.

3. 3

   Incorporate via SPICe+

   Name reservation, DIN, PAN and TAN in one integrated MCA filing — about 7–15 working days once documents are complete.

4. 4

   Capitalise and report

   Remit share capital through banking channels, allot shares, and file FC-GPR on the RBI FIRMS portal within 30 days of share allotment; FLA is filed annually by 15 July where applicable.

5. 5

   Repatriate correctly

   Dividends attract Section 195 withholding, commonly reduced to 10% under Article 10 of the India-UAE DTAA for an eligible UAE-resident beneficial owner, with a UAE Tax Residency Certificate and Form 10F.

Detail on dividends and Forms 15CA/15CB, where required, is in profit repatriation from India and withholding tax on foreign remittance. The Indian subsidiary may elect the 22% base corporate tax option under Section 115BAA (about 25.17% effective including surcharge and cess), subject to its conditions.

Raise with your UAE tax advisor (high level only): UAE corporate tax (standard 9% rate, in force for financial years beginning on or after 1 June 2023) on your group, economic substance, and the UAE treatment of Indian dividends. Under the general regime, 0% applies to taxable income up to AED 375,000 and 9% to the excess; exemptions and free-zone rules can change the outcome. Economic Substance Regulations reporting was removed for financial years ending after 31 December 2022; check historical obligations and current substance requirements with your advisor.

B) UAE-based founders & foreign nationals

A UAE resident or foreign national can own up to 100% of an Indian company where the sector and investor eligibility rules allow. Each foreign director needs a Director Identification Number (DIN) and a Class 3 Digital Signature Certificate (DSC), supported by an attested passport and address proof. The company still needs one resident-Indian director under Section 149(3). Document preparation and incorporation can be coordinated remotely, with bank KYC requirements checked separately. See company formation for foreign nationals and cost and timeline to set up in India.

Estimate your India setup cost & timeline →

C) UAE-based NRIs & OCIs

For the large overseas Indian community in the UAE and wider Gulf, investing back home is a primary India-entry path — whether building a new business, expanding a family enterprise or creating an Indian operating company. Decide whether you need to take capital and sale proceeds abroad before choosing the funding route.

NRIs and OCI cardholders can invest on a repatriable basis through NRE accounts or inward remittance under Schedule I of the FEMA (Non-debt Instruments) Rules, 2019, or on a non-repatriable basis under Schedule IV, including through NRO funds. Schedule IV investment is treated as domestic investment for FEMA purposes, so it does not require FC-GPR reporting. Dividends and sale proceeds on repatriable investments can be remitted after applicable tax. Eligible NRO balances and sale proceeds can use the USD 1 million per financial year facility, subject to tax compliance and AD-bank documentation; this is not unrestricted repatriation of the original investment.

Read NRI business setup in India and NRI investment & FEMA compliance; for personal NRI taxation, see NRI taxation at NRI Blueprint.

The UAE has no personal income tax, so there is usually no second layer of personal tax on Indian dividends for a UAE-resident NRI. Confirm your own residence and any business-tax exposure with your UAE tax advisor; Indian tax obligations continue to apply.

UAE company vs UAE founder vs UAE-based NRI

UAE-side items are for discussion with your UAE tax advisor only; the India-UAE treaty rate is not a rate for every Gulf jurisdiction.

Reviewed by CA Regi Tom Antony, Regi Tom Antony & Associates. Last reviewed: October 2026. General guidance as of October 2026, not tax or legal advice on your facts; coordinate UAE tax and reporting with your UAE advisor.