Chartered Accountants◆Practising since 2016

UAE to India · Structure

Choosing an Indian entity for a UAE parent

CA Utsav Dogra, Chartered Accountant, ICAI M. No. 542375 · Updated

In brief

A private limited subsidiary suits almost every UAE business that will hire, sell or contract in India. A branch or liaison office needs approval through an authorised dealer bank and only suits a defined role; an LLP is limited to sectors open to 100% foreign investment under the automatic route.

What is specific to UAE companies

Where the UAE company is owned or controlled by NRIs, OCI holders or resident Indians, the FEMA analysis changes and the right route may differ from an ordinary foreign investment.

Where the UAE company is owned by NRIs, OCI holders or resident Indians, India looks through it, which can change the investment route.

How the UAE side affects the choice

The UAE has no withholding tax and exempts qualifying dividends from its 9% corporate tax, so the Indian rate is often the total cost.

Our services

How SU and Company helps

We compare the options against the UAE parent's plans and give a written recommendation before any filing.

  • Activity and FDI route check
  • Tax comparison of subsidiary and branch
  • Eligibility check for branch or liaison office approval
  • Joint venture shareholding and FEMA pricing points

Questions

Is a branch office a good option for a UAE company?

Only for a narrow, approved activity. A branch is taxed at the foreign company rate and exposes the parent directly, so most groups prefer a subsidiary.

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.

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