UAE Company Formation
Mainland or free zone is the decision everything else follows from, and most advisers make it based on what they can sell. We make it based on who your customers are — and we handle the Indian side, which most UAE agents will not touch.
Starts at ₹9,999 advisory fee + UAE authority charges at actuals
What setting up in the UAE involves
The UAE offers two broad routes. A mainland company, licensed by the emirate’s Department of Economic Development, can trade freely within the UAE market and bid for government contracts. A free-zone company is licensed by one of many free-zone authorities, is simpler and often cheaper to establish, but faces restrictions on trading directly into the UAE domestic market.
Since the reforms of 2021, full foreign ownership is available for most mainland activities, which removed the historic reason many Indian businesses defaulted to free zones.
The bigger change is tax. The UAE introduced corporate tax with effect from June 2023, generally at 9% on taxable profits above a threshold, with a qualifying free-zone regime available on qualifying income where substance conditions are met. The UAE is no longer a zero-tax jurisdiction, and structures built on that assumption need revisiting.
What we help you decide
Driven by whether your customers are inside the UAE. Free zones are excellent for regional and export trade, restrictive for domestic sales.
Whether you fall within the 9% regime or qualify for free-zone treatment depends on income type and substance, not on the licence alone.
Economic substance and beneficial-ownership rules mean a licence with no real presence is increasingly difficult to maintain.
UAE account opening is materially harder than incorporation, and depends on demonstrating a genuine business and clear source of funds.
The licence type determines how many residence visas you can sponsor, which often drives the choice for founder-relocations.
An Indian resident owning a foreign company has ODI, LRS, Schedule FA and possibly residency consequences at home.
Documents required
For the UAE entity
- Passport copies of all shareholders and directors
- Passport-size photographs and visa or entry stamp pages
- Proposed trade name and business activities
- Business plan, where the authority or bank requires one
- Proof of address in the home country
For the Indian side
- PAN and address proof of the Indian resident investor
- Source of funds documentation
- Details of the proposed investment structure and amount
- Existing Indian entity documents, where investing through a company
Not sure which package fits?
A specialist will map your situation to the right plan in one call.
How a setup runs
- Structure decisionWeek 1
Mainland or free zone, which emirate, which authority, and what the corporate tax position will be. This is the whole engagement in one step.
- Name and initial approvalWeek 2
Trade name reserved and initial approval obtained from the relevant authority.
- Licence issuedWeeks 2–4
Documentation submitted, lease or flexi-desk arranged where required, and the licence issued.
- Visas and Emirates IDWeeks 4–8
Establishment card, entry permit, medical, Emirates ID and residence visa where applicable.
- Banking and Indian reportingWeeks 6–12
Bank account opened, and the Indian-side ODI or LRS reporting completed.
Transparent pricing
Advisory
₹9,999
structure and tax opinion
- Mainland versus free zone analysis
- Corporate tax position
- Authority comparison
- Written recommendation
- Formation handling
- Indian ODI filing
Setup Support
₹49,999
formation coordinated
- Everything in Advisory
- Formation with a UAE partner
- Documentation coordination
- Banking introduction
- Indian ODI or LRS filing
- Ongoing compliance
Cross-Border Managed
₹1,49,999
per year, both sides
- Everything in Setup Support
- UAE corporate tax registration and filing
- Economic substance and UBO filings
- Indian Schedule FA and ITR
- Residency and repatriation planning
Our fees cover Indian-side advisory, structuring and compliance, and coordination with licensed UAE partners. UAE authority fees, licence charges, visa costs and office or flexi-desk rent are charged at actuals and vary considerably between emirates and free zones.
What Indian founders need to think about
The UAE is no longer tax-free
Corporate tax applies from June 2023, generally at 9% on taxable profits above the threshold. A qualifying free-zone person can access a 0% rate on qualifying income, but only where substance requirements are met and the income falls within defined categories. Advice that treats the UAE as a zero-tax jurisdiction is out of date, and structures built on that basis should be reviewed.
Free zone means restricted domestic trade
A free-zone company generally cannot sell directly into the UAE mainland without a local distributor or a branch. If your customers are UAE businesses and consumers, the free-zone saving is illusory. If your customers are elsewhere in the region or overseas, it is real.
The Indian side is where people get caught
An Indian resident investing in a foreign company does so under the Overseas Direct Investment framework or the Liberalised Remittance Scheme, each with its own limits and reporting. The shareholding must then be disclosed in Schedule FA of the Indian income-tax return every year. Non-disclosure of foreign assets carries serious consequences under the black money legislation, and this is not something a UAE formation agent will tell you about.
A UAE company does not make you non-resident
Indian residency depends on days spent in India and the deemed-residence rules, not on where you hold a licence or a visa. Founders who incorporate in Dubai but continue to live in India remain Indian tax residents on worldwide income. Genuine relocation is a different exercise from company formation and needs planning across both jurisdictions.
Banking, not licensing, is the hard part
Getting a licence is straightforward. Opening a bank account requires demonstrating a real business, a credible source of funds and often a physical presence. Budget time for it, and treat any agent who promises guaranteed account opening with caution.
Ongoing on both sides
In the UAE: corporate tax registration and annual filing, economic substance notification where applicable, ultimate beneficial ownership filings, licence renewal and VAT registration once you cross the registration threshold.
In India: annual reporting of the overseas investment, disclosure of the foreign shareholding and any foreign bank account in Schedule FA of your return, and treatment of any dividend or salary received.
Keep the two sides talking. The most expensive cross-border problems we see come from a UAE adviser and an Indian adviser each doing their part correctly without anyone looking at the combined position.
Frequently asked questions
Mainland or free zone — which should I choose?
It depends on your customers. Mainland lets you trade freely within the UAE and bid for government work. A free zone is simpler and often cheaper but restricts direct sales into the UAE domestic market. If your buyers are in the UAE, mainland is usually right.
Is the UAE still tax-free?
No. Corporate tax applies from June 2023, generally at 9% on taxable profits above the threshold. A qualifying free-zone person may access 0% on qualifying income, subject to substance conditions and income type.
Can an Indian resident own a UAE company?
Yes, but the investment must be made under the Overseas Direct Investment framework or the Liberalised Remittance Scheme, and the shareholding must be disclosed annually in Schedule FA of the Indian income-tax return.
Does setting up in Dubai make me a non-resident of India?
No. Indian tax residency depends on days spent in India and the deemed-residence rules, not on holding a foreign licence or visa. Founders living in India remain Indian tax residents on worldwide income.
How long does UAE company formation take?
The licence is typically issued within two to four weeks. Visas add another month, and bank account opening is usually the longest and least predictable step.
Do you handle the formation yourselves?
We handle the Indian-side structuring, tax advice and compliance, and coordinate the UAE formation with licensed local partners. UAE authority and licence fees are charged at actuals.
Official references
The statutory sources behind this page. We keep our guidance aligned to them — verify anything time-sensitive directly.
- Reserve Bank of IndiaFEMA, remittances and foreign investment reporting
- Income Tax DepartmentReturns, forms, rates and e-filing utilities
- DPIITStartup recognition and FDI policy
Content on this page is reviewed by a chartered accountant or advocate at LexVerge LLP. It is general guidance, not advice on your specific facts.