Frequently Asked Questions (FAQs)

Here’s an expanded Help Section with at least six questions per main category: Business Setup, Operational Compliances, and Additional Services.

  • Business Setup
  • Operational Compliances
  • Additional Services

Business Setup

A: The primary factors to consider include:

  1. Type of business activity.
  2. Market accessibility (Mainland offers local market access; Free Zones are export-oriented).
  3. Ownership requirements (100% foreign ownership in Free Zones vs local sponsorship for Mainland).
  4. Cost and ease of setup.

A:

  • Free Zone: Offers 100% foreign ownership, tax exemptions, and simplified regulations.
  • Mainland: Access to the local market but may require a local sponsor or agent.

Offshore: Designed for asset protection, holding companies, and international operations; no business is conducted within the UAE.

A: Yes, it’s possible to start a business in the UAE without relocating. However, depending on the type of business, you may require a resident visa or appoint a local representative.

A: To open a bank account, you need:

  1. A valid trade license.
  2. Memorandum of Association (MoA).
  3. Passport copies of shareholders and directors.

Proof of office lease.
Banks may conduct due diligence and require a physical meeting.

A: Benefits include:

  • Access to a large, skilled workforce.
  • Tax incentives in all free zones.
  • Eligibility for issuing  employee visas
  • Cost-effective operations.

Operational Compliances

A: Businesses earning a taxable income above AED 375,000 are subject to a 9% corporate tax. Free Zone companies may be exempt if they comply with specific conditions, such as not conducting business with the Mainland.

A: APRs must be filed with the RBI annually, detailing:

  1. Financial performance of the overseas entity.
  2. Indian entity’s investment and shareholding.
  3. Returns generated and repatriation details.

A: Businesses must:

  1. Assess if their activity falls under Relevant Activities (e.g., banking, insurance, shipping).
  2. Submit ESR notifications and reports annually.
  3. Demonstrate adequate economic substance in the UAE.

A: Investors must consider:

  1. DTAA benefits to avoid double taxation.
  2. Tax residency certificates for claiming treaty benefits.
  3. Corporate tax applicability for UAE entities with Indian ownership.

A:

  1. NRIs and OCIs: Allowed to invest in residential and commercial properties.
  2. Foreign companies and individuals: Need government approval for direct real estate investments.
  3. Must comply with FEMA and report the investment to RBI if required.

Additional Services

A: Business valuation includes:

  1. Analyzing financial statements and cash flows.
  2. Choosing a valuation method: DCF, market comparables, or asset-based valuation.
  3. Preparing a valuation report compliant with jurisdictional standards.

A:

  • India: Gains are taxed at a flat 30%, and a 1% TDS applies to transactions.

UAE: There’s no personal income tax on crypto gains, but businesses may need to comply with corporate tax if profits arise from crypto trading.

A: IT companies can:

  1. Utilize Free Zones for tax benefits in the UAE.
  2. Take advantage of Startup India incentives.
  3. Structure operations to comply with cross-border IP and taxation rules.

A:

  1. Register for VAT in the UAE and GST in India.
  2. File cross-border transaction reports under FEMA in India.
  3. Maintain proper documentation for import-export activities.

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