UAE company subsidiary in India

Indian Company Registration
for UAE Businesses

A Bilateral Investment Corridor That Now Spans Both Directions

India-UAE DTAA, UAE Corporate Tax, GIFT City, and the BIT 2024

The UAE has historically been a top-ten FDI source into India and is one of the largest destinations for Indian diaspora-led businesses. Since the introduction of UAE Corporate Tax (9% from June 2023), the participation exemption and Qualifying Free Zone Person rules, plus the India-UAE Bilateral Investment Treaty signed 2024, the corridor now offers stronger investor protection and more predictable tax outcomes than the pre-2023 environment. India remains a magnet for UAE-based infrastructure, port operations, real estate, hospitality, financial services and trading groups.

This page covers the India-UAE DTAA mechanics under the new UAE CT regime, when GIFT City is the better alternative to a mainland Indian subsidiary, the apostille / attestation route for UAE Free Zone entities, and the sector-specific FDI map for verticals UAE companies most often enter. The general setup playbook lives in our pillar guide on Foreign Company Registration in India.

India-UAE DTAA — Post-Corporate-Tax Reality
  • Dividends (Art. 10): 10% if ≥10% beneficial ownership; 15% otherwise. UAE side: typically exempt under participation exemption.
  • Royalty / FTS (Art. 12): 10% in India. UAE side: subject to CT at 9% but often qualifies as Qualifying Income under Free Zone regime.
  • Interest (Art. 11): 5–12.5% depending on lender type; bank lenders 5%.
  • Capital gains (Art. 13): Indian shares generally taxable in India; the UAE does not levy capital gains tax on most disposals.
GIFT City — When It Beats a Mainland Subsidiary

Gujarat International Finance Tec-City (GIFT City) IFSC, regulated by IFSCA, offers a parallel framework that may suit specific UAE entrants better than a mainland Wholly Owned Subsidiary:

  • 100% tax exemption on income for 10 years out of any 15-year block (under Section 80LA of Income Tax Act).
  • Single regulator (IFSCA) for banking, insurance, capital markets, fund management, fintech, aircraft and ship leasing.
  • Multi-currency operations — USD, EUR, AED transactions permitted; no INR convertibility requirement.
  • Stamp duty & GST exemptions on most transactions.
  • Best fit for: UAE banks expanding into Indian wholesale banking, fund managers, fintech, insurance / reinsurance, aircraft leasing.
  • Not fit for: physical product trade, manufacturing, B2C retail or services in INR — these need a mainland WOS or branch.
UAE Documents — Apostille and Attestation
  • Mainland UAE LLCs: documents attested by UAE Ministry of Foreign Affairs (MoFAIC), then by Indian Embassy / Consulate (Abu Dhabi or Dubai). Process typically 1–2 weeks.
  • ADGM and DIFC entities: since UAE\'s 2024 Hague Apostille Convention accession, documents from these financial-free-zones can be apostilled directly without consular legalisation. Faster process.
  • Other Free Zone entities (DMCC, JAFZA, RAKEZ etc.): Free Zone Authority attestation + UAE MoFAIC + Indian Consulate. Each Free Zone has its own document issuance format we work with regularly.
  • Required documents: COI of parent, MoA/AoA, audited financials (last 2 years), Board Resolution authorising Indian setup, passport copies of Authorised Representatives and proposed Indian directors.
Common Sectors — UAE Companies in India
  • Infrastructure & ports: DP World (Mundra, Kochi), Sharjah-based port operators.
  • Retail & trading: Lulu, Choithrams expanding Indian retail; gold & jewellery wholesale.
  • Aviation & hospitality: Indian ops of Etihad, Emirates Hospitality; UAE-based hotel chains.
  • Financial services: Mashreq, FAB, ADCB India banking operations; often via GIFT City.
  • Real estate & construction: UAE developer participation in Indian commercial and residential projects.
  • Technology & e-commerce: Dubai-based Asian-tech entrants with India engineering centres.

UAE-to-India structuring decision often comes down to mainland WOS vs GIFT City vs branch. Schedule a structuring call — we model the post-CT economics, sector FDI, and operational fit before you commit.