Company setup in the UAE for Indian entrepreneurs
Mainland, free zone or offshore — with Corporate Tax, VAT, bank account support and your Indian ODI reporting planned from the outset.
The UAE is a common first step abroad for Indian businesses: it is a short flight away, it has a long-standing tax treaty with India (signed in 1992), the India–UAE Comprehensive Economic Partnership Agreement has been in force since 1 May 2022, and a bilateral investment treaty has been in force since 31 August 2024. Our UAE colleagues at ProBiz Setup handle the licence on the ground, and pbz.ae handles Corporate Tax, VAT and bookkeeping once you are trading.
Key facts at a glance
| Company types | Mainland LLC, free zone company (FZE / FZCO / FZ-LLC) and offshore company (for example RAK ICC) |
| Foreign ownership | Up to 100% for most mainland activities since 1 June 2021; 100% in free zones. A short list of strategic-impact activities stays restricted |
| Corporate Tax | 0% on taxable income up to AED 375,000 and 9% above; a Qualifying Free Zone Person can pay 0% on qualifying income if every condition is met |
| CT registration | Within 3 months of incorporation for companies incorporated on or after 1 March 2024; late registration carries an AED 10,000 penalty |
| VAT | 5%; registration is mandatory once taxable supplies and imports exceed AED 375,000 in 12 months and voluntary from AED 187,500 of supplies, imports or expenses |
| Beneficial owners | A beneficial owner register is filed with the licensing authority within 60 days, and changes are reported within 15 days |
| Residence | Investor and employee visas; a renewable 5- or 10-year Golden Visa is available to qualifying investors |
| India link | India–UAE DTAA (1992, amended), CEPA (2022) and bilateral investment treaty (2024) |
Best suited for
- Trading, import and re-export
- Consultancy, IT and professional services billed internationally
- Regional headquarters for the GCC, Africa and beyond
- E-commerce and digital businesses
- Families relocating to Dubai or Abu Dhabi
What we handle
- Choosing between mainland, free zone and offshore — and the right licence activity
- Licence, constitutional documents and UBO register
- Investor and employee visas (Golden Visa guidance)
- Corporate bank account support
- Corporate Tax and VAT registration, returns and monthly bookkeeping
- ODI filing with your Indian bank, the APR and Schedule FA
The Indian side
For a resident individual, the UAE company must be an operating business that is not in financial services and has no subsidiaries you control. Funds go out under LRS, the investment is reported to your bank in Form FC before or at the time of remittance, and an Annual Performance Report is due by 31 December each year. If you continue to live in India and run the company from here, its place of effective management — and so its tax residence — needs careful planning. See ODI & FEMA compliance.
Sources: Federal Decree-Law No. 26 of 2020 and Federal Decree-Law No. 32 of 2021 on Commercial Companies (as amended), and Cabinet Resolution No. 55 of 2021; Federal Decree-Law No. 47 of 2022 on Corporate Tax and Cabinet Decision No. 116 of 2022; Cabinet Decision No. 100 of 2023 and Ministerial Decision No. 229 of 2025 (Qualifying Free Zone Persons); FTA Decision No. 3 of 2024; Cabinet Decision No. 10 of 2024; Federal Decree-Law No. 8 of 2017 on VAT (as amended); Cabinet Decision No. 109 of 2023; u.ae Golden Visa guidance.
Ready to set up in United Arab Emirates?
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