Can you set up a business in Dubai from India?
Yes. An Indian resident can own a Dubai company, and most of the setup runs online from India. Two things need planning: the money leaves India under RBI's Overseas Investment rules through your bank, and a residence visa needs a UAE visit.
Start by deciding who will own the UAE company, because the Indian rules differ for each owner:
| Owner | Indian rules | Main limits |
|---|---|---|
| You, as a resident individual | Schedule III of the Overseas Investment Rules, 2022, and the Liberalised Remittance Scheme (LRS) | USD 250,000 a financial year across all LRS remittances; operating companies only; no financial services |
| Your Indian company | Schedule I of the Overseas Investment Rules, 2022 | Total financial commitment up to 400% of net worth; RBI approval above USD 1 billion in a financial year |
| An NRI living abroad | The rules apply to persons resident in India | FEMA treats someone who leaves India to work or do business abroad as non-resident |
Then choose the UAE route:
| Route | Best for | Point for Indian founders |
|---|---|---|
| Free zone, such as Meydan or IFZA in Dubai | Consulting, IT, e-commerce and trading with overseas clients | Meydan says you can open a company remotely; trading on the Dubai mainland needs a DET permit or a mainland branch |
| Dubai mainland, licensed by the Department of Economy and Tourism (DET) | Selling to UAE customers, retail, government work | DET asks for a valid tourist or visit visa before you apply, and premises of at least 100 sq ft |
| Offshore, such as JAFZA | Holding shares or assets, trading outside the UAE | Cannot trade with people in the UAE; a pure holding company is unlikely to suit a resident individual, who may invest only in an operating company |
Compare routes in our mainland vs free zone guide, free zones comparison and Dubai overview.
What does it cost to set up in Dubai from India in 2026?
Published free zone licences start at AED 5,750 at SPC Free Zone in Sharjah and AED 12,500 at Meydan in Dubai, before visas. Individuals also pay TCS above ₹10 lakh a year.
| Cost item | Published figure | Notes |
|---|---|---|
| Meydan Free Zone licence (Dubai) | From AED 12,500 a year | Registration and flexi-desk, no visa |
| SPC Free Zone licence (Sharjah) | From AED 5,750 | Publishing or e-commerce licence, no visa |
| DMCC Basic Biz package (Dubai) | AED 35,484 | Flexi-desk eligible for one visa; individual shareholders only |
| JAFZA offshore company | AED 10,000 to register | Registered agent fees extra |
| DET mainland trade name | AED 620 | The licence fee then depends on your activities |
| First investor visa | AED 6,450 at Ajman Free Zone; about AED 7,850 at Meydan | Before health insurance and, in most zones, the medical test |
| UAE MoFA attestation | AED 150 per personal and AED 2,000 per commercial document | Courier fee extra; MEA attestation is free |
| TCS on LRS remittances by individuals | 20% on the amount above ₹10 lakh a financial year | Purposes other than education or medical treatment |
| RBI late submission fee | ₹7,500 per late APR or evidence of investment | Paid through your AD bank |
UAE figures are as published by each authority, checked on 22 October 2026. They exclude professional fees, Emirates ID, medical tests and renewals. For a first estimate, try our cost calculator.
Do Indian documents need attestation for the UAE?
Yes, for company documents and for family and education certificates. The UAE is not among the 130 parties to the Hague Apostille Convention (status table updated 30 June 2026). Indian documents therefore follow the attestation route set by the UAE Ministry of Foreign Affairs (MoFA).
- Get the document authenticated in India: by your state's Home or education department for personal and education documents, or notarised and then authenticated by a Chamber of Commerce for company documents. Powers of attorney are signed before a notary.
- Get it attested by India's Ministry of External Affairs (MEA) through its outsourced agencies.
- Apply on the UAE MoFA website with a UAE Pass login, choosing the UAE Embassy in New Delhi or the Consulate General in Mumbai. One digital application covers both the mission and the UAE MoFA.
- A MoFA-approved courier collects the original. The attested document arrives by email, and the original comes back by courier.
The missions' guidance adds these rules:
- Birth, marriage and other official personal certificates must be originals; other documents can be originals or true copies. Laminated documents cannot be attested.
- A memorandum and articles of association must be attested separately.
- A power of attorney with commercial content counts as a commercial document.
Individual shareholders mostly provide identity and address documents that need no attestation. A mainland company with an Indian corporate shareholder also needs the parent documents legally translated into Arabic. See our attestation guide.
What do RBI's overseas investment rules require?
Money an Indian resident puts into a UAE company is overseas investment under FEMA. The Overseas Investment Rules and Regulations, 2022 and RBI's Master Direction (updated 1 April 2026) govern it. Most setups need no RBI approval, but every step goes through one designated authorised dealer (AD) bank.
Any stake in an unlisted UAE company is overseas direct investment (ODI), whatever its size. Under the OI Rules, the UAE entity must have limited liability, as a free zone company or a mainland LLC does. You file Form FC with your AD bank, which obtains a Unique Identification Number (UIN) for the UAE company from RBI. The UIN must come before the remittance or the share subscription, whichever is earlier. Co-investors from India must all use the same AD bank for that company.
Rules for resident individuals
- You may make ODI only in an operating company not engaged in financial services. An activity counts as financial services if doing it in India would need a financial regulator's registration.
- If you control the UAE company, it must not have a subsidiary or step-down subsidiary. Control includes 10% or more of the voting rights or the right to appoint most directors.
- You cannot lend to the company: resident individuals may not make a financial commitment by way of debt.
Indian companies setting up a UAE subsidiary
- Total financial commitment in all foreign entities cannot exceed 400% of net worth, as on the last audited balance sheet.
- Commitments above USD 1 billion in a financial year need RBI's prior approval.
- AD banks allow loans to the UAE company only after the Indian company has made ODI and holds control.
- The Indian company also files an Annual Return on Foreign Liabilities and Assets with RBI.
Nobody may make ODI in real estate trading or gambling. A person with a non-performing loan, a wilful defaulter tag or a CBI, ED or SFIO investigation needs a no objection certificate first.
Reporting after the money leaves
- Evidence of investment: give the AD bank share certificates or equivalent UAE documents within six months of the remittance, or bring the money back.
- Annual Performance Report (APR): file it for each UAE company by 31 December every year, based on audited accounts, unless you hold under 10% without control. If the UAE company's year ends on 31 December, the APR is due by 31 December of the following year.
- Dividends and other dues: repatriate them to India within 90 days of falling due.
- Late filings: regularise within three years by paying a late submission fee; until then you cannot invest further in that company.
How do you fund the company: LRS limit and TCS
A resident individual can send up to USD 250,000 per financial year (April to March) under LRS. The limit covers all your LRS remittances together, so travel or education payments reduce what is left.
- Paperwork: PAN is mandatory, and you sign Form A2.
- Setup costs: the AD bank can allow pre-incorporation expenses of up to USD 100,000 per foreign entity, counted towards your LRS limit.
- No borrowed money or cash: LRS does not envisage AD bank loans for capital account remittances, and overseas investment in cash is not permitted.
- Companies: LRS is not available to companies, firms or trusts. An Indian company invests within its own ODI limit.
- TCS: banks collect TCS on LRS remittances under section 394 of the Income-tax Act, 2025. For purposes other than education or medical treatment, it is 20% on the amount above ₹10 lakh a financial year. Budget 2026 cut only the education and medical rate, to 2%. Confirm the rate with your bank.
Visas, travel and the UAE bank account
Many free zone licences, such as Meydan's, can be issued without a UAE visit. Registration and the visa process can begin online from India, but the medical test and biometrics happen in person.
The company first gets an establishment card. You then enter on an entry permit, which gives you 60 days to complete the medical test, Emirates ID and residence visa.
- Investor or partner visa: usually valid for two years and renewable.
- Family: sponsor your spouse and children with monthly income of AED 4,000, or AED 3,000 plus housing, using attested marriage and birth certificates.
- Time abroad: a standard residence visa usually lapses after more than six months outside the UAE. Golden and Green residents are exempt.
- Longer visas: the five-year Green visa needs an investment of at least AED 1 million, and the 10-year Golden visa AED 2 million.
Read our investor visa guide and Golden visa guide.
Bank account. A licence does not mean a bank will accept you. Emirates NBD's digital application and Mashreq NEOBiz each need a UAE-resident signatory or partner. Keep your Form FC acknowledgement, UIN email and SWIFT advice to show where the capital came from. See our corporate bank account guide.
Indian tax residency and place of effective management
A Dubai company does not end your Indian tax obligations. Two tests matter: where you are resident, and where the company is managed.
You. The Income-tax Act, 2025 took effect on 1 April 2026. You are resident in India if you spend 182 days or more in India in a tax year. You are also resident at 60 days if you spent 365 days in India over the previous four years. For an Indian citizen visiting India, the 60-day test does not apply. If your Indian income exceeds ₹15 lakh, it applies at 120 days instead. An Indian citizen with Indian income above ₹15 lakh who is not liable to tax in any other country is deemed resident, but not ordinarily resident. The UAE does not levy income tax on individuals, so take advice on this rule.
While you are resident and ordinarily resident, India taxes your worldwide income, including dividends and salary from the UAE company. A UAE visa alone does not change this: count your days.
The company. A foreign company is resident in India if its place of effective management (POEM) is in India. POEM is where key management and commercial decisions for the business as a whole are in substance made. Run the company from India and it risks Indian tax as a resident company.
In the UAE. Corporate tax is 0% on taxable income up to AED 375,000 and 9% above. A Qualifying Free Zone Person pays 0% on qualifying income. Register within three months of incorporation: late registration costs AED 10,000. See our UAE corporate tax guide.
India-UAE DTAA and CEPA basics
The India-UAE tax treaty (DTAA) decides which country taxes income when both could. It was signed on 29 April 1992 and entered into force on 22 September 1993.
- UAE residents: an individual present in the UAE for at least 183 days in the calendar year. A company must be incorporated in the UAE and managed and controlled wholly there.
- Dual residents: a company is resident where its POEM is. For individuals, the tests are permanent home, centre of vital interests, habitual abode and nationality.
- Business profits: taxable only in the UAE unless the company has a permanent establishment in India. Staff furnishing services in India on the same or a connected project for more than 9 months in any 12-month period create one.
- Caps on Indian tax: 10% on dividends, 12.5% on interest (5% on bank loans) and 10% on royalties paid to a UAE resident.
- Proof: treaty relief in India needs a tax residency certificate from the UAE government.
The India-UAE Comprehensive Economic Partnership Agreement (CEPA) entered into force on 1 May 2022. It cuts or removes tariffs on more than 80% of products the UAE exports to India. Preferential rules of origin decide which goods qualify. It also widens access to India for UAE service providers in 11 sectors and more than 100 sub-sectors. CEPA is a trade agreement: tax questions stay with the DTAA.
Common mistakes to avoid
- Paying UAE setup money without ODI reporting, or through more than one bank.
- Signing incorporation papers before the AD bank has the UIN.
- Choosing a holding or financial services activity as a resident individual.
- Missing the six-month evidence deadline or the 31 December APR.
- Keeping dividends abroad beyond 90 days.
- Taking all key decisions in India, which creates a POEM risk.
- Sending documents with only an apostille, or the MoA and AoA attested together.
How Ofin helps on both sides
Ofin Legal in Mumbai, founded in 2019, handles the Indian side; Ofin's UAE desk handles the licence, visas and banking. Ofin Legal has a 4.9-star Google rating and more than 5,000 clients served.
India side:
- ODI filing: Form FC, UIN, evidence of investment and the yearly APR
- FEMA and India-UAE tax advice before you invest
- annual compliance and professional accounting
- IEC and GST registration if you will export to the UAE company
UAE side:
- route and activity advice across the mainland, free zones and offshore
- name reservation, approvals and the trade licence
- investor and employee visas and Emirates ID
- corporate bank account support
- attestation, PRO services, VAT and corporate tax registration, and accounting
Ofin typically plans 7 to 15 working days for the setup, subject to government approvals. Call or WhatsApp Ofin's UAE desk on +971 50 523 5779.
