India Market Entry Services for UAE Companies

India has become an increasingly important destination for companies from the United Arab Emirates seeking access to a large consumer market, manufacturing opportunities, technology talent, infrastructure projects and long-term investment growth.

The India–UAE commercial relationship has expanded rapidly following the India–UAE Comprehensive Economic Partnership Agreement (CEPA), growing investment by UAE sovereign wealth funds and businesses, stronger financial connectivity and continuing cooperation in infrastructure, energy, logistics, technology, artificial intelligence and advanced industries.

EzyBiz India Consulting LLP provides end-to-end India Market Entry Consulting for UAE companies planning to establish, invest, manufacture, trade or operate in India. Our support covers market-entry strategy, entity selection, incorporation, FDI and FEMA compliance, banking, taxation, GST, transfer pricing, accounting, payroll and ongoing regulatory compliance.

Whether you are searching for India market entry for UAE companies, UAE company setup in India, Dubai company registration in India, business setup in India from the UAE or establishment of an Indian subsidiary, the appropriate legal and operating structure should be determined before incorporation or capital investment begins.

Why UAE Companies Are Expanding into India

Access to One of the World’s Largest Growth Markets

India offers UAE businesses access to a substantial consumer and enterprise market together with manufacturing capacity, skilled professionals, digital infrastructure and growing demand across industrial and service sectors.

Businesses considering a long-term Indian presence can also review our detailed guide on Setting Up Business in India.

Strong UAE Investment Presence in India

The UAE has emerged as one of India’s important sources of foreign investment. UAE investments span infrastructure, logistics, energy, real estate, financial services, private equity, technology and other sectors.

According to official Government of India information published in 2026, cumulative FDI from the UAE into India amounted to approximately US$25.19 billion from April 2000 to March 2025.

UAE sovereign wealth funds and institutional investors have also developed a substantial presence in the Indian investment ecosystem.

Opportunity for UAE SMEs and Family-Owned Businesses

The opportunity is not limited to sovereign funds and large corporate groups. UAE SMEs, family businesses, trading companies, technology companies and service providers may also use India as a customer market, sourcing base, manufacturing platform or technology and back-office location.

Dubai and Abu Dhabi-based businesses with regional operations may particularly consider India when diversifying supply chains or expanding into South Asia.

India–UAE Strategic Partnership and 2026 Developments

Bilateral Trade Crosses US$100 Billion

India–UAE commercial ties have continued to deepen following implementation of CEPA. Bilateral merchandise trade crossed US$100 billion and reached approximately US$101.25 billion in FY 2025–26.

In January 2026, India and the UAE agreed to work toward doubling bilateral trade to more than US$200 billion by 2032.

Official 2026 outcomes relating to trade, investment and strategic cooperation are available from the Press Information Bureau, Government of India.

New Investment and Strategic Cooperation

The bilateral agenda has expanded beyond traditional trade and energy into infrastructure, artificial intelligence, space, advanced computing, logistics and other strategic sectors.

During 2026 engagements, India and the UAE announced initiatives including cooperation relating to Dholera Special Investment Region, space-industry development, supercomputing infrastructure and additional UAE investment into India.

This creates opportunities for UAE investors, operating businesses and strategic partners beyond conventional import-export transactions.

India–UAE CEPA and Market Access

How CEPA Supports UAE–India Trade

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

CEPA provides preferential market-access arrangements across goods, services and other areas of economic cooperation.

UAE companies exporting qualifying UAE-origin goods to India should evaluate the applicable tariff concession, HS classification and rules of origin before claiming preferential customs treatment.

Official information on CEPA and its implementation is available from the Government of India’s CEPA implementation release.

Rules of Origin and Certificate of Origin

Preferential duty treatment under CEPA is not automatic merely because goods are shipped from the UAE.

The relevant product must satisfy the applicable CEPA rules of origin and documentation requirements. UAE businesses operating as trading or re-export hubs should pay particular attention to origin requirements where products originate in third countries.

Product classification, value addition, manufacturing process and supporting origin documentation should therefore be reviewed before importing goods into India under a preferential tariff claim.

India–UAE Bilateral Investment Treaty

Investment Protection Under the 2024 BIT

India and the UAE signed a new Bilateral Investment Treaty in February 2024, which entered into force on 31 August 2024.

The treaty provides an investment-protection framework covering matters such as treatment of qualifying investments, national treatment, transfers, protection against specified forms of expropriation and dispute-resolution mechanisms, subject to the treaty terms and exclusions.

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

BIT Does Not Replace Indian FDI and FEMA Rules

The Bilateral Investment Treaty should not be confused with permission to invest under India’s FDI framework.

A UAE investor must still comply with India’s sectoral FDI policy, FEMA, pricing, beneficial-ownership rules, company law and other applicable regulations before making the investment.

India Entry Structures Available to UAE Companies

Wholly Owned Subsidiary in India

A UAE parent seeking long-term ownership and operational control may establish an Indian private limited company as a Wholly Owned Subsidiary in India, where permitted under the applicable FDI framework.

An Indian subsidiary is a separate legal entity and can generally undertake permitted commercial activities, enter contracts, employ personnel, maintain Indian bank accounts and raise invoices in its own name.

Joint Venture with an Indian Partner

A UAE company may establish a Joint Venture in India where an Indian partner contributes distribution, licences, industry relationships, infrastructure, manufacturing capacity or specialist local knowledge.

The Joint Venture agreement should address shareholding, governance, reserved matters, funding obligations, intellectual property, transfer restrictions, deadlock arrangements and exit rights.

Branch Office in India

A Branch Office in India is an extension of the UAE company rather than a separately incorporated Indian entity.

It can undertake only the activities permitted under the applicable FEMA framework and has a different tax, liability and regulatory profile from an Indian subsidiary.

Liaison Office in India

A Liaison Office in India can be considered where the UAE company requires a representative presence for communication, market research, promotion or coordination.

A Liaison Office cannot ordinarily undertake revenue-generating commercial activity in India.

Project Office in India

A Project Office in India may be relevant for UAE engineering, infrastructure, EPC or project-based companies executing a specific qualifying Indian contract.

Its existence is normally linked to execution and completion of the particular project.

Which India Entry Structure Should a UAE Company Choose?

Wholly Owned Subsidiary vs Joint Venture

A wholly owned subsidiary generally provides greater ownership and operational control, whereas a Joint Venture may be commercially appropriate where an Indian partner provides strategic capabilities or market access.

UAE groups should consider FDI eligibility, customer requirements, management control, intellectual property, funding, taxation, repatriation and long-term expansion before choosing between these structures.

Subsidiary vs Branch, Liaison or Project Office

An Indian subsidiary is a separately incorporated Indian company, while Branch, Liaison and Project Offices remain extensions of the UAE parent.

The structures differ materially in permitted activities, taxation, liability, regulatory approvals and scalability.

Foreign groups requiring a broader comparison can review our Foreign Company Registration in India guide.

Step-by-Step Process for a UAE Company to Set Up in India

Step 1 – Define the India Business Model and FDI Position

The UAE investor should first define the proposed products or services, customers, investment amount, Indian employees, imports, exports, location and relationship with the UAE parent.

The exact activity should then be reviewed against the applicable FDI policy, sector conditions and beneficial-ownership requirements.

Step 2 – Finalise Entity Structure and Overseas Documentation

Once the entry structure is selected, the UAE parent prepares the corporate approvals, shareholder information, director KYC, beneficial-ownership information and other overseas documents required for the Indian process.

The documentation requirements can differ depending on whether the UAE parent is a mainland company, free-zone company, DIFC or ADGM entity or another form of UAE legal entity.

Step 3 – Incorporation and Indian Bank Account

For an Indian subsidiary, the incorporation process generally includes company-name approval, Digital Signature Certificates, Memorandum and Articles of Association, subscriber and director documents and registered-office evidence.

After incorporation, the Indian company proceeds with corporate bank-account onboarding and beneficial-ownership KYC.

Step 4 – Capital Infusion and Operational Readiness

The UAE shareholder remits the agreed investment through permitted banking channels, following which the Indian company completes share allotment and applicable FEMA reporting.

GST, IEC, payroll, employment, accounting, sector licences and other operating registrations are then implemented according to the business model.

Documents Required from a UAE Parent Company

Mainland, Free-Zone, DIFC and ADGM Company Documents

The exact document set depends on the UAE entity’s legal form and registering authority.

Common documents may include:

• Certificate of Incorporation or Registration;
• commercial registration or trade licence;
• Memorandum and Articles or constitutional documents;
• registered-office details;
• Board Resolution approving establishment of the Indian entity;
• Board Resolution approving the investment and share subscription;
• Power of Attorney or authorised representative documentation;
• shareholder or member information;
• group ownership chart; and
• ultimate beneficial ownership information.

Free-zone documentation should be checked against the requirements of the relevant authority because document titles and available corporate extracts may differ from those of UAE mainland companies.

Documents of UAE-Based Directors and Shareholders

Individual directors and shareholders may need passport, residential-address proof, photograph, email address, mobile number and other KYC information.

Where an individual residing in the UAE is not a UAE national, Indian incorporation and banking documentation should reflect the person’s actual nationality and residential status accurately.

Attestation, Legalisation and English Translation

UAE corporate documents intended for use in India should be authenticated in the manner required under the applicable Indian corporate filing rules.

UAE documents should not automatically be assumed to follow the ordinary Hague Apostille route. Appropriate notarisation, attestation or consular/legalisation requirements should be confirmed for the particular document before it is processed.

Where a corporate document is available only in Arabic, an appropriate certified English translation may also be required.

Information relating to UAE document attestation is available through the UAE Ministry of Foreign Affairs.

FDI and FEMA Compliance for UAE Investment in India

Automatic Route and Government Route

Foreign investment of up to 100% is permitted under the Automatic Route in many Indian activities, subject to sector-specific conditions and the prevailing FDI framework.

Other sectors or transactions may be subject to ownership caps, licensing requirements or Government approval.

Current FDI policy and Press Notes can be reviewed through the Department for Promotion of Industry and Internal Trade.

Beneficial Ownership of UAE Investment Vehicles

The immediate UAE shareholder is not always the only ownership level relevant to Indian FDI analysis.

Where a UAE company, holding company, free-zone entity, private investment vehicle or fund is ultimately owned or controlled by investors from other jurisdictions, the complete beneficial-ownership structure should be reviewed.

This is particularly important where Indian foreign-investment approval rules depend on the investor’s upstream beneficial ownership.

FC-GPR and Continuing FEMA Reporting

Where an Indian company issues eligible equity instruments to a UAE investor as Foreign Direct Investment, applicable reporting, including Form FC-GPR, must be completed within the prescribed regulatory timeframe.

Future reporting may arise for additional capital, share transfers, downstream investment, foreign liabilities and assets or restructuring.

The relevant regulatory framework can be reviewed through the Reserve Bank of India foreign-investment reporting regulations.

EzyBiz provides dedicated FEMA and RBI Advisory Services to foreign investors and foreign-owned Indian businesses.

Banking, INR–AED Settlement and Capital Infusion

Corporate Bank Account and UAE Parent KYC

Indian banks generally undertake detailed KYC of the Indian subsidiary, UAE parent, directors, authorised signatories, shareholders and ultimate beneficial owners.

Banks may request the UAE company’s trade licence, incorporation documents, ownership chart, business profile, source of funds and information concerning anticipated transactions.

Bank documentation should therefore be prepared while incorporation is underway.

Local Currency Settlement Between India and the UAE

India and the UAE have established a Local Currency Settlement framework enabling eligible bilateral trade and other permitted transactions to be settled in Indian Rupees and UAE Dirhams.

The availability and commercial suitability of INR–AED settlement should be confirmed with the relevant authorised banks for the particular transaction.

UAE equity investment into an Indian company should continue to follow the applicable FEMA and banking framework for foreign investment rather than assuming that the trade settlement mechanism itself determines the investment procedure.

India–UAE DTAA, Corporate Tax and Transfer Pricing

India–UAE Double Taxation Avoidance Agreement

India and the UAE have a Double Taxation Avoidance Agreement that should be considered when structuring cross-border dividends, interest, royalties, services and other income.

Tax-treaty entitlement should be evaluated based on the relevant residence, beneficial ownership, substance, treaty provisions and applicable anti-abuse rules.

The synthesised India–UAE treaty text can be reviewed through the Income Tax Department of India.

Permanent Establishment Risk

A UAE business operating in India without a separately incorporated subsidiary should consider whether its personnel, premises, agents, contract activity or project presence could create a Permanent Establishment in India.

The analysis depends on Indian domestic tax law, the India–UAE DTAA and the actual conduct of business.

Transfer Pricing and Profit Repatriation

An Indian subsidiary may undertake international transactions with its UAE parent or other associated enterprises involving goods, management services, technology, software, financing, royalties or cost allocations.

Applicable international transactions should comply with Indian transfer-pricing requirements and be supported by proper inter-company agreements and commercial evidence.

EzyBiz provides Transfer Pricing Advisory Services, including policy review, benchmarking, documentation and reporting support.

Profit-repatriation arrangements such as dividends and legitimate inter-company payments should also be reviewed for tax, withholding, treaty, transfer-pricing and FEMA consequences.

GST, Customs and India–UAE CEPA Trade

GST Registration and Indian Operations

GST registration depends on the nature of supplies, turnover, business model, location and other provisions of GST law.

UAE-owned manufacturing, trading, e-commerce and service businesses should assess their GST position before commencing taxable operations.

EzyBiz assists foreign-owned businesses with GST Registration Services in India.

The official system can be accessed through the GST Portal.

Imports from the UAE and CEPA Origin Rules

Companies importing UAE-origin goods should evaluate customs classification, valuation, import restrictions, CEPA eligibility and Import Export Code requirements.

Businesses using the UAE as a re-export or trading hub should distinguish between goods merely shipped from the UAE and goods qualifying as UAE origin under CEPA.

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

Key Opportunities for UAE Companies in India

Infrastructure, Logistics and Industrial Development

UAE businesses and institutional investors have significant experience in infrastructure, ports, logistics, industrial zones, real estate and urban development.

India’s continuing infrastructure expansion can create opportunities for UAE operators, developers, investors, engineering businesses and strategic partners.

Energy and Renewable Energy

Energy remains a major component of the India–UAE commercial relationship.

Cooperation covers traditional energy as well as renewable energy, energy storage and strategic reserves, creating opportunities for investment, technology and supply-chain participation.

Artificial Intelligence, Technology and Digital Infrastructure

India and the UAE have increased cooperation in artificial intelligence, digital infrastructure and advanced computing.

The 2026 bilateral agenda included collaboration relating to a supercomputing cluster in India, alongside broader technology and innovation cooperation.

UAE technology groups and investors may consider Indian subsidiaries, technology centres, strategic investments or Global Capability Centres in India.

Financial Services, Funds and GIFT City

UAE sovereign wealth funds, investment companies, family offices and financial institutions have become important participants in India’s investment ecosystem.

GIFT City can also be relevant to UAE financial and investment groups considering India-facing financial, fund or international financial-services structures, subject to the applicable regulatory framework.

Manufacturing, Food, Retail and Consumer Businesses

UAE businesses operating in manufacturing, food products, consumer goods, retail, hospitality, healthcare and other sectors may evaluate India both as a customer market and a sourcing or manufacturing location.

Companies evaluating production facilities can review our Manufacturing Setup in India services.

Choosing the Right Location in India

Locations for Manufacturing, Logistics and Infrastructure

Industrial businesses should evaluate potential Indian locations based on customer access, ports, logistics networks, supplier clusters, skilled labour, land, power, state incentives and sector-specific infrastructure.

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

The UAE’s growing investment cooperation with Gujarat, including initiatives relating to Dholera, may also be relevant for certain infrastructure, industrial and logistics projects.

Locations for Technology and Service Companies

Technology, finance and service operations may consider Bengaluru, Hyderabad, Mumbai, Pune, Chennai, Delhi NCR and other major talent centres.

The decision should be based on employee skills, customer proximity, operating costs, infrastructure and the functions that the Indian business will perform.

Timeline, Cost and Implementation Planning

Indicative UAE-to-India Setup Timeline

Where complete and properly authenticated UAE documentation is available, a straightforward Indian subsidiary can often be incorporated within approximately one to three weeks, subject to company-name approval, MCA processing and regulatory queries.

Stage	Indicative Position
Entry structure and FDI review	Approximately 2–5 business days
UAE document preparation and authentication	Depends on entity type and document readiness
Indian company incorporation	Often approximately 1–3 weeks after complete documents are ready
Indian bank onboarding	Depends on bank KYC
Capital infusion and FEMA reporting	Subject to applicable process and timelines
GST, IEC and operating licences	Depends on business activity

Cost and Common Causes of Delay

The setup cost depends on the legal structure, authorised capital, state stamp duty, UAE entity type, foreign directors and shareholders, document authentication, banking, FEMA work and additional licences.

Common delays include incomplete UAE corporate extracts, expired trade licences, inconsistent shareholder information, legalisation issues, unclear beneficial ownership and bank KYC queries.

The Indian filing documents, UAE corporate records and bank KYC package should therefore be coordinated from the beginning.

Common Mistakes UAE Companies Should Avoid

Assuming a UAE Free-Zone Company Automatically Qualifies for All Benefits

Being incorporated in a UAE free zone does not by itself determine Indian FDI eligibility, DTAA entitlement, CEPA origin or banking treatment.

The actual legal entity, tax residence, beneficial ownership, business activity and commercial substance must be considered separately for each regulatory purpose.

Confusing UAE Re-Export Status with CEPA Origin

Dubai and other UAE locations are major international trading and re-export hubs. However, products shipped from the UAE do not necessarily qualify as UAE-origin goods under CEPA.

Businesses should confirm the relevant origin rule and supporting documentation before claiming preferential customs treatment in India.

Frequently Asked Questions – UAE Companies Entering India

India Entry, FDI, CEPA and Tax FAQs

1. Can a UAE company own 100% of an Indian company?
Yes, up to 100% foreign ownership is permitted in many Indian sectors, subject to the applicable FDI policy, sectoral conditions and regulatory requirements.

2. What is the most common India entry structure for a UAE company?
An Indian private limited company structured as a wholly owned subsidiary is commonly considered for long-term commercial operations where 100% foreign investment is permitted. The appropriate structure depends on the specific business.

3. Can a Dubai free-zone company establish an Indian subsidiary?
Yes, subject to Indian FDI, company-law, beneficial-ownership, documentation and other applicable requirements. The free-zone entity’s constitutional and ownership documents should be reviewed before incorporation.

4. Does a UAE company need an Indian shareholder?
Not merely because it is a foreign investor. Where 100% foreign ownership is permitted, the intended beneficial ownership can generally remain foreign, while the Indian company must satisfy its statutory member requirements.

5. Does the Indian company need a resident director?
An Indian company must satisfy the resident-director requirement under Indian company law. Foreign nationals may also serve as directors subject to applicable requirements.

6. Is RBI approval required for every UAE investment?
No. Many investments are permitted under the Automatic Route. Government or other regulatory approval may apply depending on the sector, investor structure and transaction.

7. Does India have a trade agreement with the UAE?
Yes. The India–UAE Comprehensive Economic Partnership Agreement has been in force since 1 May 2022.

8. Can all goods shipped from Dubai receive CEPA duty benefits?
No. Preferential treatment depends on the relevant tariff concession and compliance with CEPA rules of origin. Mere shipment or re-export through the UAE is not sufficient.

9. Is there an investment treaty between India and the UAE?
Yes. The India–UAE Bilateral Investment Treaty signed in February 2024 entered into force on 31 August 2024.

10. Is there a DTAA between India and the UAE?
Yes. India and the UAE have a Double Taxation Avoidance Agreement that should be considered for relevant cross-border income, Permanent Establishment and withholding-tax issues.

11. Do UAE corporate documents need apostille?
The document-authentication route should be checked for the specific document and Indian filing requirement. UAE corporate documents should not simply be assumed to follow the standard Hague Apostille process; notarisation, attestation or consular/legalisation requirements may apply.

12. Do Arabic documents need English translation?
Where a document required for Indian corporate or regulatory filing is not in English, an appropriate certified English translation may be required.

13. What is FC-GPR?
FC-GPR is a foreign-investment reporting form generally relevant when an Indian company issues eligible equity instruments to a person resident outside India as FDI.

14. Can the Indian company receive investment in AED?
Foreign investment should be routed through permitted banking channels in accordance with the applicable FEMA framework. The exact remittance and currency arrangement should be coordinated with the authorised bank.

15. Can INR–AED local currency settlement be used for India–UAE transactions?
A Local Currency Settlement framework exists between India and the UAE for eligible transactions. Availability and suitability should be confirmed with the relevant banks for the particular transaction.

16. Is transfer pricing applicable to a UAE-owned Indian subsidiary?
International transactions between the Indian company and its UAE parent or other associated enterprises may be subject to Indian transfer-pricing provisions.

17. Can profits be repatriated to the UAE?
Profits and legitimate inter-company payments may generally be remitted through permitted mechanisms subject to company law, tax, withholding, transfer pricing, treaty and FEMA requirements.

18. How long does Indian subsidiary incorporation take?
A straightforward incorporation may often be completed within approximately one to three weeks after complete and properly authenticated documentation is available, subject to MCA processing and case-specific queries.

19. Can UAE companies manufacture in India?
Yes, subject to the applicable FDI, industrial, environmental, employment and sector-specific regulations.

20. Does EzyBiz support UAE companies after incorporation?
Yes. EzyBiz provides continuing support covering FEMA, accounting, payroll, taxation, GST, transfer pricing, ROC compliance and other Indian regulatory requirements.

How EzyBiz Supports UAE Companies Entering India

End-to-End UAE-to-India Market Entry Support

EzyBiz India Consulting LLP assists UAE companies throughout the India-entry lifecycle, including:

• India market entry strategy and entity selection;
• Wholly Owned Subsidiary registration;
• Joint Venture structuring;
• Branch, Liaison and Project Office advisory;
• UAE mainland and free-zone parent documentation review;
• document attestation and translation guidance;
• company incorporation;
• FDI, FEMA and RBI advisory;
• beneficial-ownership analysis;
• Indian bank-account assistance;
• capital infusion and share allotment;
• FC-GPR and other FEMA reporting;
• GST and Import Export Code assistance;
• India–UAE CEPA and customs considerations;
• India–UAE DTAA and international-tax advisory;
• transfer-pricing compliance;
• accounting and bookkeeping;
• payroll and employee compliance;
• ROC and corporate secretarial compliance;
• manufacturing and GCC setup support; and
• ongoing India regulatory compliance.

Our integrated approach enables UAE head-office, finance and investment teams to coordinate entity establishment, foreign investment, banking, tax, accounting and continuing compliance through a single professional advisory team in India.

Related India Entry Services

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

Reviewed By

CA Anil Agrawal, Founder, EzyBiz India Consulting LLP
Chartered Accountant with 20+ years of professional experience in India market entry, taxation, FEMA, international tax, transfer pricing and cross-border regulatory advisory.

Last Updated

September 2026

Disclaimer

The information provided on this page is intended for general informational purposes only and should not be construed as legal, tax, FEMA, investment, customs, accounting or regulatory advice.

The appropriate India market entry structure and requirements for a UAE company depend on the proposed business activity, sector, legal form of the UAE investor, ownership and beneficial-ownership structure, investment amount, Indian location, supply chain, employee model and actual conduct of operations.

India’s Foreign Direct Investment policy, FEMA and RBI regulations, company law, India–UAE CEPA provisions, Bilateral Investment Treaty, customs rules, taxation, transfer pricing, GST, employment regulations and sector-specific requirements may change from time to time. CEPA tariff benefits depend on the relevant product classification, tariff concession, rules of origin and supporting documentation.

UAE companies and investors should obtain professional advice based on their specific circumstances before incorporating an Indian entity, making an investment, importing goods, claiming CEPA benefits, transferring funds, appointing employees or commencing business operations in India.