UAE Company Formation
What the free zone or DED asks for when an Indian resident or company sets up in the UAE: passport and visa pages, proof of address, business plan, trade-name options, shareholder resolutions and the attested corporate documents for a company shareholder — plus the Indian ODI filings on the way out.
Licensing usually takes about two to ten working days in most free zones once the documents are complete, though authorities can raise queries. The Indian side — LRS or ODI reporting — runs in parallel and is where most delays sit.
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Each shareholder, director and manager (individuals)
- Passport with at least six months' validity — colour scan of the photo page
- Passport-size photograph on a white background
- Proof of residential address — utility bill or bank statement not older than three months
- Existing UAE visa or entry stamp, and Emirates ID if any
- CV or professional profile (asked for by DIFC, ADGM and some free zones for regulated or professional activities)
- Signed KYC and ultimate beneficial owner (UBO) declaration
Corporate shareholder (an Indian company or LLP)
- Certificate of incorporation, MOA and AOA / LLP agreement, notarised, apostilled and attested by the UAE embassy in India and the UAE Ministry of Foreign Affairs
- Board resolution approving the UAE subsidiary, its capital, and appointing the authorised signatory and managers — attested the same way
- Certificate of incumbency or a register of directors and shareholders
- Audited financial statements for the last year (some free zones and all banks)
About the business
- Three trade-name options (no religious, political or well-known brand words; a name matching the Indian company is usually accepted)
- Business activities from the free zone's list — the activity decides the licence type and the visa quota
- Short business plan: what is sold, to whom, expected turnover and headcount (required for DMCC, DIFC, ADGM and banks)
- Office choice — flexi-desk, serviced office or physical unit; the number of visas depends on it
- Share capital (free zones typically AED 10,000–50,000; some need it paid into a UAE account within a set period)
Indian compliance (before money leaves India)
- Individual shareholder: remittance under LRS within USD 250,000 a year, with Form A2 and the bank's ODI reporting (Form FC), since any stake in an unlisted foreign company is ODI
- Company shareholder: board resolution, Form FC through the AD bank, valuation certificate where required, and the Unique Identification Number before the first remittance
- After setup: share certificate to the AD bank within six months, annual performance report by 31 December, and Schedule FA in the Indian return
Bank account opening
- All of the above plus: proof of business — Indian company's bank statements, contracts or invoices with existing customers, website
- Source of funds explanation and the shareholder's personal bank statements for six months
- Expected transaction profile — countries, currencies, monthly volumes
Before you send
- Attestation of Indian corporate documents takes two to four weeks; start it before choosing the free zone.
- Corporate tax registration with the FTA is due within three months of incorporation — a AED 10,000 penalty applies for late registration.
- A UAE company run from India can be taxed in India under the place-of-effective-management rule; keep board meetings and decisions in the UAE.
Disclaimer. This page is a general reference prepared from the law and notifications as we understand them on the date shown. It is not legal, tax or professional advice and does not create a client relationship; rates, thresholds and due dates change and your position depends on facts we have not seen. Please confirm with us before acting on anything here. I. H. Khan and Associates accepts no liability for decisions taken on the basis of this page. Section numbers are those of the Income-tax Act, 2025, in force from 1 April 2026, with the 1961 Act number in brackets (pages about the FY 2025-26 return, which the 1961 Act still governs, quote that Act first) — see our section map.
Questions we are asked
What documents are needed to set up a UAE company from India? Individual shareholders need a passport with six months' validity, a photograph, address proof not older than three months, any UAE visa or Emirates ID, and a KYC and UBO declaration. A corporate shareholder needs attested incorporation documents, a board resolution, an incumbency certificate, and audited financial statements where the free zone or bank asks for them.
How long does UAE company formation take? Licensing usually takes about two to ten working days in most free zones once the documents are complete, though authorities can raise queries. Attestation of Indian corporate documents takes two to four weeks, and the Indian LRS or ODI reporting is where most delays sit.
What Indian compliance applies when an Indian resident sets up a UAE company? An individual remits under LRS within USD 250,000 a year, with Form A2 and ODI reporting (Form FC) through the AD bank, since any stake in an unlisted UAE company is ODI, and may invest only in an operating business; a company shareholder needs a board resolution, Form FC and the Unique Identification Number before the first remittance. After setup, the annual performance report is due by 31 December.
When must a new UAE company register for corporate tax? Corporate tax registration with the FTA is due within three months of incorporation, with a AED 10,000 penalty for late registration. A UAE company run from India can be taxed in India under the place-of-effective-management rule.
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