India Market Entry Services for UAE Companies

India has become a strategically important destination for companies and investors from the United Arab Emirates seeking opportunities in manufacturing, technology, infrastructure, consumer markets, professional services and long-term business expansion. Businesses based in Dubai, Abu Dhabi, Sharjah and other Emirates are increasingly evaluating India for subsidiaries, joint ventures, investments, sourcing operations and regional growth.

The India–UAE economic relationship has strengthened through the Comprehensive Economic Partnership Agreement (CEPA), the 2024 Bilateral Investment Treaty, growing cross-border investments and cooperation in logistics, energy, technology, financial services and industrial infrastructure.

However, India market entry for UAE companies requires careful planning. Foreign investors must consider Indian company law, Foreign Direct Investment (FDI) restrictions, FEMA and RBI regulations, corporate banking, beneficial ownership, taxation, transfer pricing, GST and ongoing statutory compliance.

EzyBiz India Consulting LLP provides integrated India Market Entry Consulting Services for UAE companies planning to establish or expand operations in India. Our Chartered Accountant-led team assists with entity selection, company incorporation, foreign-investment compliance, banking coordination, corporate taxation, international tax, accounting, payroll and post-incorporation compliance.

We assist UAE mainland companies, Dubai and other free-zone entities, DIFC and ADGM companies, family-owned businesses, investment holding companies and operating groups seeking an appropriate Indian business structure.

1. India–UAE Economic and Investment Relationship

India–UAE Comprehensive Strategic Partnership

India and the UAE maintain a Comprehensive Strategic Partnership encompassing trade, investment, infrastructure, energy, technology, logistics, defence-related cooperation and people-to-people relationships.

The UAE is one of India’s most important commercial partners, and Indian businesses also maintain a significant presence across the Emirates.

The Embassy of India in Abu Dhabi provides information on the bilateral economic and commercial relationship.

India–UAE Bilateral Trade in FY 2025–26

Bilateral merchandise trade between India and the UAE reached approximately US$101.25 billion in FY 2025–26, demonstrating the scale of commercial engagement between the countries.

In January 2026, both governments agreed to work toward increasing bilateral trade to approximately US$200 billion by 2032. This represents a bilateral objective rather than a guaranteed future outcome.

Trade opportunities cover petroleum products, engineering goods, machinery, food, jewellery, chemicals, textiles, electronics and other products.

UAE Investment in India

The UAE has emerged as an important source of foreign investment into India, including investment by sovereign wealth funds, private equity groups, family offices, infrastructure investors and operating companies.

Official Indian government information reported cumulative UAE foreign direct investment of approximately US$25.19 billion for April 2000 to March 2025.

UAE businesses evaluating India should consider both the commercial investment opportunity and the legal requirements applicable to their specific ownership structure, sector and investment route.

2. Why UAE Companies Are Expanding into India

Access to Indian Consumer and Industrial Markets

India offers opportunities for UAE-based businesses across manufacturing, trading, industrial services, infrastructure, retail, consumer products, technology, healthcare and professional services.

Companies may establish a local presence to serve Indian customers, develop distribution channels, undertake manufacturing or deliver services directly.

Our Business Setup Services in India cover the practical considerations involved in establishing commercial operations.

Manufacturing, Sourcing and Supply-Chain Expansion

UAE trading and industrial groups may consider India for manufacturing, component sourcing, assembly, procurement support and supply-chain diversification.

The decision should reflect sourcing requirements, logistics, quality controls, import-export regulations, labour availability, state incentives and the expected customer base.

Businesses establishing factories or production facilities can review our Manufacturing Setup in India services.

Opportunities for UAE SMEs, Family Businesses and Investment Groups

India market entry is relevant not only to large UAE investors but also to small and medium-sized enterprises, family-owned trading businesses, technology companies, professional services firms and regional holding groups.

Depending on their objectives, these investors may consider an Indian subsidiary, joint venture, acquisition, distributor arrangement or another legally permitted structure.

3. India–UAE CEPA and Preferential Trade

India–UAE CEPA Effective from May 2022

The India–UAE Comprehensive Economic Partnership Agreement was signed on 18 February 2022 and entered into force on 1 May 2022.

CEPA provides a framework for preferential trade arrangements covering specified goods, services and other aspects of bilateral economic cooperation.

Official information is available from the Department of Commerce, Government of India.

Rules of Origin and Certificate of Origin

Goods imported into India from the UAE do not automatically qualify for reduced customs duties simply because they are shipped from Dubai or another UAE location.

Eligibility depends on the relevant product classification, CEPA concession schedule, Rules of Origin, applicable production or value-addition conditions and supporting evidence.

Indian importers should also consider the Customs (Administration of Rules of Origin under Trade Agreements) Rules, 2020, commonly known as CAROTAR.

UAE Re-Exports and Third-Country Goods

Dubai and other UAE locations are significant international trading and re-export hubs.

A UAE company importing goods from a third country and subsequently exporting those goods to India should not assume that the products become UAE-origin goods merely through storage, repackaging or re-export.

The applicable CEPA origin requirements must be examined before any preferential customs claim is made.

For trading businesses, CEPA eligibility should be assessed separately from company incorporation and foreign-investment structuring.

4. India–UAE Bilateral Investment Treaty

Investment Protection Under the 2024 Treaty

India and the UAE signed a Bilateral Investment Treaty on 13 February 2024. The treaty entered into force on 31 August 2024.

The treaty establishes an investment-protection framework for qualifying investments, subject to its defined scope, conditions, exceptions and dispute-resolution provisions.

The official treaty status and documentation can be reviewed through the Department of Economic Affairs, Ministry of Finance.

Investment Treaty versus FDI Permission

The existence of the Bilateral Investment Treaty does not automatically authorise a UAE investor to establish or acquire an Indian business.

The investor must separately comply with India’s FDI policy, sectoral restrictions, FEMA, company law, beneficial-ownership requirements and any applicable government approval conditions.

Investment Holding Companies and Family Offices

UAE investment holding companies, family offices and institutional investors may consider direct equity investments, acquisition structures or other permitted arrangements in India.

The investment structure should be reviewed for regulatory eligibility, beneficial ownership, taxation, repatriation, reporting and corporate governance.

Investors considering GIFT City or regulated financial-services activities require separate evaluation under the relevant sector-specific framework.

5. Entry Structures Available to UAE Companies

Wholly Owned Subsidiary in India

A UAE parent company may establish an Indian private limited company as a wholly owned subsidiary where 100% foreign investment is permitted for the intended activities.

The Indian subsidiary is a separate legal entity and can generally undertake permitted commercial activities, enter contracts, employ personnel, maintain bank accounts and issue invoices.

An Indian private limited company normally requires at least two members and two directors. A properly structured nominee shareholding arrangement may be considered where the UAE parent intends complete beneficial ownership, subject to applicable law and disclosure requirements.

At least one director must satisfy the applicable resident-director requirement under Indian company law.

Learn more about our Wholly Owned Subsidiary Registration Services.

Joint Venture with an Indian Partner

A UAE company may establish a joint venture with an Indian business where the partner contributes distribution, customer access, manufacturing facilities, technology, licences or local expertise.

The joint venture agreement should address equity ownership, funding, board representation, decision-making, reserved matters, intellectual property, transfer restrictions and exit mechanisms.

Our Joint Venture Registration Services cover the corporate and regulatory aspects of establishing a joint venture.

Branch Office, Liaison Office and Project Office

Depending on the proposed activities and regulatory eligibility, a UAE company may evaluate a Branch Office, Liaison Office or Project Office.

A Branch Office may undertake specified permitted activities. A Liaison Office is generally restricted to representative and coordination functions and cannot undertake ordinary revenue-generating commercial activities.

A Project Office is ordinarily associated with execution of an eligible Indian project or contract.

These structures are extensions of the foreign company rather than separately incorporated Indian subsidiaries.

6. Choosing the Right India Entry Structure

Wholly Owned Subsidiary versus Joint Venture

A wholly owned subsidiary generally provides greater ownership and operational control, while a joint venture may be beneficial when the Indian partner contributes material commercial value.

The choice should consider the investment objective, FDI eligibility, operational responsibility, governance, intellectual property and future exit arrangements.

Subsidiary versus Branch or Liaison Office

An Indian subsidiary may be better suited for a UAE company intending broad commercial activities, extensive employment, manufacturing or long-term growth.

Branch and Liaison Offices have different permissible activities, regulatory requirements, tax consequences and limitations.

Entry structure	Typical purpose	Separate Indian entity?
Wholly Owned Subsidiary	Long-term business operations	Yes
Joint Venture	Business with Indian partner	Usually yes, if incorporated
Branch Office	Specified permitted activities	No
Liaison Office	Representation and coordination	No
Project Office	Execution of eligible projects	No

UAE Mainland versus Free-Zone Parent Company

India does not automatically prescribe one incorporation procedure solely because the foreign shareholder is a UAE mainland or free-zone company.

However, the relevant UAE legal form, registration authority, corporate documents, ownership, permitted investment activities and authentication requirements can differ.

The UAE parent’s legal capacity to hold overseas investments and the applicable Indian FDI rules should be verified before incorporation.

7. Step-by-Step Process for UAE Company Registration in India

Step 1: Determine Business Model and FDI Eligibility

Define the proposed business activities, products, services, investment amount, ownership structure, customers, employees and Indian operating location.

Review the applicable FDI route, sectoral restrictions, regulatory approvals and investor-related conditions.

Step 2: Prepare UAE Parent Company Documentation

Obtain appropriate company incorporation records, trade licence, constitutional documents, shareholder information, corporate approvals, director documents and authorised representative details.

Review the documentation and attestation requirements before beginning Indian filings.

Step 3: Indian Incorporation, Banking and Capital Investment

Indian company incorporation generally involves Digital Signature Certificates, name reservation, constitutional documents, subscriber and director records, registered-office evidence, SPICe+ and linked MCA filings.

Following incorporation, the Indian company proceeds with bank onboarding, foreign-capital remittance, share allotment and applicable FEMA reporting.

Our Foreign Company Registration in India services support relevant incorporation and regulatory procedures.

8. Documents Required from UAE Companies

Mainland, Free-Zone, DIFC and ADGM Company Documents

The documents required depend on the legal nature and registering authority of the UAE shareholder.

Common requirements may include:

• Certificate of Incorporation or Registration;
• valid trade licence or relevant corporate extract;
• Memorandum and Articles or other constitutional documents;
• registered-office particulars;
• board resolution authorising the investment;
• power of attorney or authorised representative documentation;
• shareholder or member records;
• group ownership chart; and
• ultimate beneficial ownership information.

Documents issued by mainland, free-zone, DIFC or ADGM authorities may differ in form and terminology. Their suitability for Indian filing should be checked in advance.

Director KYC, Attestation and English Translation

UAE-based directors and shareholders may need passports, proof of residence, photographs, identification details and statutory declarations.

The documentation must distinguish UAE nationality from residence in the UAE, because many UAE companies are owned or managed by nationals of other countries.

Documents originating in the UAE should be authenticated according to applicable Indian corporate filing requirements. UAE-issued documents should not automatically be treated as eligible for ordinary Hague Apostille procedures; appropriate notarisation, Ministry of Foreign Affairs attestation and consular legalisation may be required.

Where documents are issued in Arabic, appropriate English translation may also be required.

Reference information is available from the UAE Ministry of Foreign Affairs.

9. FDI, FEMA and Beneficial Ownership Requirements

Automatic Route, Government Route and Sectoral Restrictions

Up to 100% foreign investment is permitted under the automatic route in many Indian business activities, but eligibility depends on the sector and applicable conditions.

Some activities have investment caps, licensing requirements or government approval obligations.

Current foreign-investment policy material can be reviewed through the Department for Promotion of Industry and Internal Trade.

Upstream Ownership, FC-GPR and FLA Reporting

A UAE company may be owned by shareholders from different jurisdictions, including through intermediate holding companies, funds or investment vehicles.

Accordingly, the complete beneficial-ownership and control structure should be examined for applicable Indian FDI approval requirements and other regulatory disclosures.

Where an Indian company issues equity instruments qualifying as FDI, Form FC-GPR is generally required within 30 days from the date of issue of the instruments.

Annual Foreign Liabilities and Assets reporting, generally due by 15 July where applicable, and reporting concerning share transfers or downstream investment may also be relevant.

Our FEMA and RBI Advisory Services support foreign investment compliance.

10. Corporate Banking, INR–AED Settlement and Capital Funding

Indian Corporate Bank Account and UAE Parent KYC

An Indian subsidiary owned by a UAE company generally requires a corporate bank account for receiving capital and conducting business transactions.

Banks may require authenticated documents of the UAE parent, ownership structure, business details, authorised signatories, ultimate beneficial owners and source-of-funds information.

Bank onboarding should be planned alongside incorporation. Approval and activation depend on the relevant bank’s KYC procedures.

Local Currency Settlement and Equity Remittance

India and the UAE have established a Local Currency Settlement framework to facilitate eligible transactions in Indian Rupees and UAE Dirhams.

The framework can be relevant for permitted bilateral trade and other eligible transactions, subject to banking arrangements.

However, the existence of INR–AED settlement arrangements does not independently determine the procedure for investing equity in an Indian company.

Equity remittances, share allotment, pricing and regulatory reporting must comply with the applicable foreign-investment framework.

11. India–UAE DTAA, Corporate Tax and Transfer Pricing

India–UAE Double Taxation Avoidance Agreement

India and the UAE have a Double Taxation Avoidance Agreement relevant to specified categories of cross-border income.

UAE businesses should evaluate treaty provisions when structuring dividends, interest, royalties, services and other transactions with Indian operations.

Treaty entitlement is not automatically established by UAE incorporation or free-zone status. Tax residence, beneficial ownership, commercial substance, relevant documentation and anti-abuse provisions should be reviewed.

Official tax guidance is available through the Income Tax Department.

Permanent Establishment, Transfer Pricing and Profit Repatriation

UAE businesses operating in India without a separately incorporated subsidiary should consider whether personnel, premises, agents or contractual activities create a Permanent Establishment under applicable Indian law and the India–UAE DTAA.

For UAE-owned Indian subsidiaries, international transactions with associated enterprises may require arm’s-length pricing, supporting documentation and Form 3CEB reporting where applicable.

Dividends, royalties, management fees and other legitimate inter-company payments should be reviewed for withholding tax, treaty, transfer pricing, company-law and FEMA implications.

EzyBiz provides Transfer Pricing Advisory Services for cross-border group transactions.

12. GST, Customs and Regulatory Compliance

GST Registration, Import Export Code and Tax Obligations

UAE-owned Indian businesses carrying on manufacturing, trading, services or e-commerce activities should assess applicable GST registration obligations.

The requirement depends on the nature and location of supplies, turnover and other statutory provisions.

Businesses engaged in importing or exporting goods should also determine applicable Importer Exporter Code requirements and customs compliance.

Our GST Registration Services support foreign-owned Indian companies.

CEPA Benefits and Customs Documentation

Importers of UAE-origin goods should evaluate HS classification, applicable duties, valuation, product restrictions and the relevant CEPA tariff concession.

For Dubai trading and re-export businesses, it is especially important to distinguish goods qualifying as UAE-origin products from goods merely shipped through the UAE.

Supporting origin evidence and applicable customs procedures should be reviewed before any preferential duty claim is made.

Official import-export information is available from the Directorate General of Foreign Trade.

13. Key Investment Opportunities for UAE Companies

Infrastructure, Logistics, Energy and Industrial Development

UAE investors and businesses have experience in ports, infrastructure, logistics, industrial zones, energy, real estate and strategic investments.

India’s infrastructure and manufacturing development offers opportunities for operating companies, investors, equipment suppliers, developers and other commercial partners.

Investment proposals involving regulated activities, infrastructure concessions or real estate require separate legal and sector-specific review.

Technology, Financial Services, Manufacturing and Consumer Businesses

Other relevant areas include artificial intelligence, data infrastructure, digital technology, renewable energy, food processing, retail, healthcare, consumer products and manufacturing.

UAE family offices, investment groups and financial businesses may also evaluate eligible opportunities involving GIFT City, funds or international financial services, subject to the relevant regulatory framework.

Technology businesses may assess our Global Capability Centre Setup in India services.

14. Location Selection, Timeline and Setup Costs

Choosing an Indian State or Business Location

UAE companies establishing manufacturing, logistics, technology or service operations should evaluate Indian locations based on customer proximity, workforce availability, infrastructure, ports, airports, land, utilities and state-level regulations.

Depending on the business, Gujarat, Maharashtra, Tamil Nadu, Karnataka, Telangana, Uttar Pradesh, Delhi NCR and other regions may be considered.

No single state is necessarily the lowest-cost or most suitable location for every UAE investor.

Indicative Company Incorporation Timeline and Cost

Where complete and appropriately authenticated UAE documentation is available, a straightforward Indian subsidiary may often be incorporated within approximately one to three weeks, subject to MCA processing, name approval and case-specific queries.

Bank onboarding, foreign-investment reporting, GST, payroll and operating licences may require additional time.

Stage	Indicative planning position
Entry strategy and FDI review	Approximately 2–5 business days for a straightforward initial review
UAE documents and authentication	Depends on entity type and document readiness
Indian incorporation	Often 1–3 weeks after complete documentation
Bank account opening	Subject to bank KYC
Capital infusion and FEMA	Applicable banking and statutory timelines
GST and operating registrations	Depends on business activity

These are planning estimates and not guaranteed processing periods.

Setup costs depend on the entity structure, authorised capital, state stamp duty, registered-office arrangements, UAE document authentication, professional services and applicable registrations.

15. Frequently Asked Questions for UAE Companies

Can a Dubai or UAE Free-Zone Company Establish an Indian Subsidiary?

Yes, subject to applicable Indian FDI, company-law, beneficial-ownership, documentation and regulatory requirements. The free-zone entity’s legal capacity and constitutional documents should be reviewed.

Where 100% foreign ownership is permitted, a UAE company may generally hold the intended beneficial ownership of an Indian subsidiary while satisfying the Indian company’s statutory membership requirements.

Does a UAE-Owned Indian Company Need a Resident Director?

Yes. An Indian company must have at least one director satisfying the applicable India-residency requirement. Foreign nationals may also serve as directors subject to Indian company-law requirements.

For eligible FDI activities, government approval is not necessarily required merely because the investor is incorporated in the UAE. Nevertheless, sectoral restrictions and upstream beneficial ownership must be reviewed.

Can UAE Companies Claim CEPA Benefits and Repatriate Profits?

CEPA benefits may be available for qualifying products meeting the applicable tariff and Rules of Origin requirements. Mere shipment through Dubai is insufficient.

Profits may generally be repatriated through permitted dividends and legitimate inter-company payments, subject to company law, taxation, treaty provisions, transfer pricing, withholding and FEMA requirements.

Investors should separately evaluate DTAA eligibility, corporate tax obligations and any applicable foreign-investment reporting.

16. How EzyBiz Supports UAE Companies Entering India

End-to-End UAE-to-India Market Entry Advisory

EzyBiz India Consulting LLP assists UAE mainland companies, free-zone businesses, investment groups and other foreign investors with the financial and regulatory aspects of establishing operations in India.

Our services include:

• India market entry strategy and entity selection;
• wholly owned subsidiary registration;
• joint venture structuring and registration;
• branch, liaison and project office advisory;
• UAE parent-company documentation review;
• attestation and English-translation guidance;
• beneficial ownership and FDI eligibility review;
• company incorporation and statutory registrations;
• FEMA and RBI advisory;
• Indian corporate bank-account coordination;
• capital infusion, share allotment and FC-GPR support;
• India–UAE DTAA and international-tax advisory;
• transfer pricing and Form 3CEB compliance;
• GST registration and compliance;
• accounting, bookkeeping and statutory audit;
• payroll and employee compliance;
• ROC and corporate secretarial compliance; and
• manufacturing and Global Capability Centre advisory.

Our professional team comprises Chartered Accountants, Company Secretaries and associated professionals, including professionals with Big Four experience.

Speak with Our India Market Entry Experts

Whether your UAE business intends to establish an Indian subsidiary, develop a joint venture, expand manufacturing, enter the Indian consumer market or invest through a UAE holding company, EzyBiz can assist in evaluating the relevant incorporation and compliance requirements.

Mobile: +91 98992 17778

Email: anil@ezybizindia.in

WhatsApp: Connect with Our India Entry Advisory Team

Related Services

• India Market Entry Consulting
• India Market Entry Services by Country
• Business Setup Services in India
• Foreign Company Registration in India
• Wholly Owned Subsidiary Registration
• Joint Venture Registration
• Branch Office Registration
• Liaison Office Registration
• Project Office Registration
• FEMA and RBI Advisory Services
• International Tax Advisory
• Transfer Pricing Services
• GST Registration Services
• Accounting and Bookkeeping
• Manufacturing Setup in India
• Global Capability Centre Setup in India

Reviewed By: CA Anil Agrawal, Founder, EzyBiz India Consulting LLP. Over 20 years of professional experience in taxation, FEMA, India market entry and cross-border regulatory advisory.

Last Updated: November 2026

Disclaimer: This article provides general information and does not constitute legal, investment, taxation, customs, FEMA or regulatory advice. The appropriate India market entry structure and applicable requirements for UAE companies depend on their legal form, proposed activities, sector, ownership and beneficial ownership, investment amount and individual transaction facts. Indian FDI policy, FEMA and RBI regulations, company law, the India–UAE CEPA, Bilateral Investment Treaty, customs rules, tax treaties, GST and employment laws may change. CEPA tariff benefits are subject to applicable product classification, origin rules and supporting documentation. UAE businesses should obtain transaction-specific professional advice before making an investment, incorporating an Indian entity or commencing business operations.