UAE company incorporation

Mainland or free zone

A UAE entity can be set up on the mainland or in a free zone. The choice affects ownership, where the entity may trade, licensing and its position under UAE corporate tax. The firm compares the options against the intended business and handles the incorporation.

The Indian side

The part more often missed is what happens in India. Where an Indian resident or company holds the UAE entity, the following need attention:

• Overseas investment under the Foreign Exchange Management (Overseas Investment) Rules, 2022, and the related reporting
• Indian tax on dividends and other income received from the UAE entity
• Place of effective management: a company actually managed from India can become tax-resident in India
• Tax on the eventual exit

After incorporation

UAE corporate tax registration and filing obligations apply to the entity, and a tax residency certificate may be needed where treaty relief is to be claimed in India.