FAQ
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General FAQ
Our services are a very easy and straightforward process through-out.
Setting up an company in a Dubai Freezone is a simple process and you are only required to give the name of the company which you plan to register along with Passports and photos of the directors. No other document is required to be submitted for registering a company in Dubai. Even a single person can register a LLC Company in Dubai and you dont need 2 persons to register a company.However, in case you are registering a subsidiary or a branch in Dubai, additional documents like Company MoA, Company AoA, Board Resolution etc would also be required to be submitted.
The whole process of LLC Company Setup in Dubai will take around 2-3 weeks and can be done remotely from anywhere across the World. A Digital bank account can also be opened remotely without the need of visiting Dubai. However, if you require an account in a physical bank with branches – you would be required to travel to UAE.
Once the bank account is opened, Internet Banking would be activated and the account can be operated from anywhere across the Globe without staying in UAE.
Whether Indian Govt will levy tax on the Income earned by this Foreign Company will depend on whether the Company is being controlled and managed from India or not. In simple terms, it will depend on whether its Directors are residing in India or residing outside India.
If Directors are Residing outside India
If the Directors of the Dubai Company are residing outside India, then neither can the Indian Govt levy Tax on the Income of the Company and nor can they levy Tax on the Income of the Directors. In such a case, both the Company as well as its Directors would be considered as NRI.
If the Directors are Residing in India
Case I: If the Directors are residing in India and Turnover of the Dubai Company is more than Rs. 50 Crores In such a case, the Company would be deemed to be Resident in India and Indian Govt will levy Tax on both the Income of the Directors as well as the Income of the Company.
Case II: If the Directors are Residing in India and Turnover of the Dubai Company is less than Rs. 50 Crores A Foreign Company with turnover/gross receipts of less than Rs. 50 Crores p.a. cannot be considered to be a Resident in India (Circular No. 8/2017 dated February 23, 2017) In other words, if the turnover of the Dubai company is expected to be less than Rs. 50 crores p.a., the Indian Govt considers the company a Non-Resident and therefore cannot levy any Income Tax or GST on this company. The Indian Govt cannot levy any Income Tax or GST on the foreign company even though the foreign company is being controlled by me from India as the provisions of Section 6(3)(ii) don’t get applicable in this case.
In such a case, the Indian Govt levies Tax on the Income of the Directors but not on the Income of the Foreign Company.
Thus, if you have a bank account in Dubai or US or Portugal etc. in your Individual Capacity, the income earned in that individual bank account would be taxable in India if you are residing in India from Rs. 1 onwards. However, if you own a Company outside India, Indian Govt cannot levy Tax on Income of such company which is registered outside India. And therefore, it is not recommended that you open a bank account in your Individual Name outside India and rather open a company outside India as in such a case the Indian Govt does not have the power to levy any tax.
If you are thinking how I know so much about taxes, then let me intimate you that we are CA’s by Qualification with more than 10 years of experience of helping Indian entreprenuers in setting up a company in Dubai. We ourselves have our offices in both India as well as Dubai and understand the law of both the regions and help our clients structure the UAE Company in accordance with laws of both countries.
If Directors are Residing outside India
If the Directors of the Dubai Company are residing outside India, then neither can the Indian Govt levy Tax on the Income of the Company and nor can they levy Tax on the Income of the Directors. In such a case, both the Company as well as its Directors would be considered as NRI.
If the Directors are Residing in India
Case I: If the Directors are residing in India and Turnover of the Dubai Company is more than Rs. 50 Crores In such a case, the Company would be deemed to be Resident in India and Indian Govt will levy Tax on both the Income of the Directors as well as the Income of the Company.
Case II: If the Directors are Residing in India and Turnover of the Dubai Company is less than Rs. 50 Crores A Foreign Company with turnover/gross receipts of less than Rs. 50 Crores p.a. cannot be considered to be a Resident in India (Circular No. 8/2017 dated February 23, 2017) In other words, if the turnover of the Dubai company is expected to be less than Rs. 50 crores p.a., the Indian Govt considers the company a Non-Resident and therefore cannot levy any Income Tax or GST on this company. The Indian Govt cannot levy any Income Tax or GST on the foreign company even though the foreign company is being controlled by me from India as the provisions of Section 6(3)(ii) don’t get applicable in this case.
In such a case, the Indian Govt levies Tax on the Income of the Directors but not on the Income of the Foreign Company.
Thus, if you have a bank account in Dubai or US or Portugal etc. in your Individual Capacity, the income earned in that individual bank account would be taxable in India if you are residing in India from Rs. 1 onwards. However, if you own a Company outside India, Indian Govt cannot levy Tax on Income of such company which is registered outside India. And therefore, it is not recommended that you open a bank account in your Individual Name outside India and rather open a company outside India as in such a case the Indian Govt does not have the power to levy any tax.
If you are thinking how I know so much about taxes, then let me intimate you that we are CA’s by Qualification with more than 10 years of experience of helping Indian entreprenuers in setting up a company in Dubai. We ourselves have our offices in both India as well as Dubai and understand the law of both the regions and help our clients structure the UAE Company in accordance with laws of both countries.
Free Zone Limited Liability Company (FZ-LLC)
Dubai Development Authority enables new businesses to register a Free Zone Limited Liability Company as a separate legal entity. Either individual or corporate shareholders can create FZ-LLC. The UAE imposes certain conditions regarding the ownership of an FZ-LLC. Depending on the company's size and its domain of activity, the Dubai authorities might also require minimum capital. IndiaFilings can provide information regarding the documentation needed to form an FZ-LLC.
Free Zone Establishment (FZE)
Free Zone Establishment (FZE) is a limited liability company (LLP) meaning that the liabilities of the company are limited to its capital paid. The legal personality of an FZE is distinct from that of its shareholder, and it has all the rights, privileges, and capacities of an individual.
Dubai Development Authority enables new businesses to register a Free Zone Limited Liability Company as a separate legal entity. Either individual or corporate shareholders can create FZ-LLC. The UAE imposes certain conditions regarding the ownership of an FZ-LLC. Depending on the company's size and its domain of activity, the Dubai authorities might also require minimum capital. IndiaFilings can provide information regarding the documentation needed to form an FZ-LLC.
Free Zone Establishment (FZE)
Free Zone Establishment (FZE) is a limited liability company (LLP) meaning that the liabilities of the company are limited to its capital paid. The legal personality of an FZE is distinct from that of its shareholder, and it has all the rights, privileges, and capacities of an individual.