What is specific to UAE companies
Many UAE companies investing in India are owned by Indian-origin founders, which brings look-through rules into play. Others are regional holding companies using the treaty and the UAE's lack of withholding tax.
What is specific to UAE investors
- Press Note 3 is not triggered, provided no ultimate owner sits in one of India's land-neighbour countries.
- India–UAE tax treaty: dividends 10%, interest 5% (banks), 12.5% otherwise, royalties 10%.
- India has no social security agreement in force with this country, so a foreign national posted to India generally contributes to Indian provident fund as an international worker on full salary.
- The UAE appears on India's list of reciprocating territories (s.44A, civil procedure code): a money decree from one of its superior courts can be put into execution in an Indian district court, unless a statutory ground for refusal applies.
- The India–UAE CEPA took effect on 1 May 2022, and a bilateral investment treaty followed on 31 August 2024.
- The parent usually closes its year on 31 December; Indian companies close on 31 March.
Our services
How SU and Company helps
For UAE companies we act as the Indian firm of Chartered Accountants from the first board decision onwards.
- Entity and FDI route advice
- Incorporation of the subsidiary, or branch, liaison or project office approvals
- FEMA and RBI reporting for every inflow and outflow
- Accounting, tax, GST and transfer pricing
- Payroll and expatriate tax
- Company secretarial and annual filings
Questions
May a UAE company hold all the shares of its Indian company?
Yes. Full foreign ownership is allowed without prior approval in most sectors, subject to any sector cap.
How long does it take a UAE company to set up in India?
Allow 2–4 weeks for UAE documents, then about two to three weeks for incorporation, with the bank account usually the slowest step. Most groups are operating within two to three months.
General information as at 5 November 2026, not advice for a particular case. Indian and UAE rules change often; confirm the current position before acting. UAE law points should be confirmed with a UAE adviser.