Mainland, free zone and offshore company formation in Dubai, Abu Dhabi, Sharjah and Ras Al Khaimah — with UAE corporate tax and VAT registration and the Indian ODI compliance handled alongside.
The UAE remains the most popular international base for Indian entrepreneurs: three and a half hours from Mumbai, a large Indian business community, a stable currency pegged to the US dollar, and a tax system that is light but now clearly regulated. Since June 2023 the UAE has levied a federal corporate tax of 9% on taxable profits above AED 375,000, with a 0% rate available to Qualifying Free Zone Persons on qualifying income, and VAT at 5% applies to most supplies of goods and services.
The right licence depends on what you will actually do. A mainland licence issued by the Department of Economy in the relevant emirate lets you trade anywhere in the UAE and bid for government work; 100% foreign ownership is now permitted for most commercial and industrial activities. A free zone company (for example in DMCC, IFZA, RAKEZ, JAFZA, DAFZA, SHAMS or Meydan) is quicker and cheaper to set up, allows 100% foreign ownership, and suits trading, services, holding and e-commerce businesses whose customers are outside the UAE or in other free zones. An offshore company (JAFZA Offshore or RAK ICC) is a non-resident holding vehicle that cannot trade within the UAE but can hold shares, property and intellectual property.
We handle the UAE-side formation with our licensed partners and manage the Indian-side approvals, remittances and reporting ourselves, so that the structure is compliant on both ends.
| Item | Position |
|---|---|
| Corporate tax | 9% above AED 375,000; 0% on qualifying free zone income |
| VAT | 5% (registration threshold AED 375,000) |
| Minimum shareholders / directors | 1 / 1 (any nationality) |
| Formation time | 1–3 weeks |
| Visa eligibility | Yes — mainland and free zone |
| Audit | Required for mainland (above thresholds), QFZPs and most free zones |
Licensed by the Department of Economy (DED / DET) of the emirate. Can trade across the UAE, lease offices anywhere and bid for government contracts. Requires a physical office (Ejari) and, for a few strategic activities, a UAE national partner.
Incorporated in a free zone authority with its own registrar. Flexi-desk or office options, fast licensing, 100% ownership, and eligibility for the 0% corporate tax rate on qualifying income if substance and other conditions are met. Selling into the UAE mainland requires a distributor or a mainland branch.
Non-resident holding vehicle with no UAE licence to trade locally. Used to hold shares in other companies, UAE property (where permitted), IP and investments. No visa eligibility; bank account opening requires a clear purpose.
Extension of the Indian parent rather than a separate legal entity. Useful when contracts must be signed by the parent, but exposes the parent to UAE liabilities and corporate tax on UAE-source profits.
Common-law financial free zones used for holding companies, family offices and regulated activities, and — together with RAK ICC — the three UAE jurisdictions offering private foundations for succession and asset holding. See our Foundations service.
We map your business model, customers and visa needs to the licence type, emirate and free zone that fit, and confirm the Indian ODI route.
Trade name approval, initial approval from the authority and, for some activities, external approvals.
MOA/AOA, shareholder and UBO declarations, office lease or flexi-desk agreement. Documents can be signed in Dubai or, for many free zones, digitally.
Trade licence, certificate of incorporation and establishment card issued. Total formation typically takes 1–3 weeks.
Establishment immigration card, owner and staff visas, Emirates ID, corporate bank account, corporate tax registration with the FTA (mandatory) and VAT registration where the threshold is crossed.
The Indian side of an overseas structure
For Indian resident promoters, setting up abroad is only half the job. Depending on how the entity is owned and funded, you may need to comply with the Overseas Investment Rules, 2022 (Form FC filing through your AD bank, a Unique Identification Number and an Annual Performance Report), the Liberalised Remittance Scheme limit of USD 250,000 per person per financial year, Place of Effective Management (POEM) rules that can make a foreign company tax-resident in India if it is controlled from here, transfer pricing on transactions with your Indian business, and Schedule FA disclosure of foreign assets in your Indian return. We build these into the plan from the start.
For most free zones the licence can be issued without you travelling, using attested documents and digital signing. You will need to visit once for the residence visa (medical test and Emirates ID biometrics) and, in most cases, for corporate bank account opening. Mainland licences generally require the manager to be present for lease and immigration formalities.
No longer entirely. Corporate tax at 9% applies to profits above AED 375,000 from financial years starting on or after 1 June 2023. A free zone company can benefit from 0% on qualifying income if it maintains adequate substance in the free zone, earns qualifying income, complies with transfer pricing and has audited accounts — and any non-qualifying income is taxed at 9%. There is still no personal income tax and no withholding tax.
You can own it, but if the key management and commercial decisions are actually taken in India, the company risks being treated as tax-resident in India under the POEM rules, which would make its global income taxable in India. We structure board composition, meetings and decision-making so that the UAE company has genuine management in the UAE.
An individual can remit up to USD 250,000 per financial year under LRS for investment in an overseas entity, subject to the Overseas Investment Rules. An Indian company can invest up to 400% of its net worth under the automatic route. Remittances go through your AD bank with Form A2 and Form FC, and a UIN is allotted for the investment.
It depends on activity, cost, visa quota and reputation with banks. IFZA, RAKEZ and SHAMS are cost-effective for services and trading; DMCC is the preferred zone for commodities and international trading and is well regarded by banks; JAFZA suits logistics and larger trading houses; Meydan and Dubai South serve e-commerce and consultancy. We shortlist two or three for you with a cost comparison.
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Learn moreTell us about your business and where your customers and investors are; we will send a structure recommendation and a full cost schedule.
