Dubai's non-oil trade with India reached a record AED 222.5 billion in 2025, up 15%. 7,579 Indian companies joined the Dubai Chamber of Commerce in the first half of 2026. The India–UAE trade agreement (CEPA) has been in force since May 2022.

When does it make sense?

There is no fixed size. The usual signs: UAE orders are rising; a distributor is becoming critical to your sales; customers ask for a UAE invoice; you need stock or people on the ground; or your board is discussing Gulf expansion.

Yes. Free zone companies can be fully foreign-owned. Since 1 June 2021, most mainland activities also allow 100% foreign ownership with no local partner. Some strategic activities follow separate rules.

A free zone licence is often issued within 1 to 3 weeks once documents are complete. The bank account is usually the slowest step (2 to 10 weeks). A realistic plan is 3 to 4 months from decision to a company that can invoice and bank.

What tax do we pay in the UAE?

0% on taxable profit up to AED 375,000 and 9% above. A free zone company can pay 0% on qualifying income if it meets every condition. If it fails one, it is taxed at the standard rate on all income for that year and the next four. VAT is 5%. Customs duty on most goods is 0% or 5%.

Can profits be taken back to India?

Yes. The UAE does not withhold tax on dividends. India taxes dividends from a foreign subsidiary at your company's normal rate. Profits kept in the UAE company bear only UAE tax until they are paid to you.

Does routing goods through Dubai give CEPA benefits?

No. CEPA benefits depend on where the goods were made and whether they meet the rules of origin.

What are the main risks?

Higher freight cost and less certain delivery while Hormuz is disrupted; losing the 0% free zone rate; the Dubai company being treated as Indian-resident (POEM); rejected CEPA claims; bank account delays.

GreenwolfAdvisorsGlobal Advisory Firm

India → UAE · Goods corridor

Dubai Company Setup for Indian Exporters and Traders

A decision guide for Indian exporters, traders, distributors and manufacturers setting up in Dubai and the wider UAE. Information as at 7 October 2026.

Download the PDF guideDownload the full guide (PDF, 17 pages)

The Short Answer

Dubai can work for an Indian goods business in more than one way. It can be a market, where UAE customers buy what you already make or trade. It can be a base for the Gulf, with stock, sales and customer management for several countries in one place. It can be a route to Africa and other regions. And it can be a place to buy from several countries and sell under one company. Many businesses start with the first and add the others over time. Some never need more than the first.

This guide explains when a Dubai company makes sense, how to set one up, and what India and the UAE each require. It also covers the shipping disruption that began in February 2026, because it affects how and when you move goods. The decision to make is whether an India-only structure still fits your next stage of growth.

Who this guide is for: Promoters, CEOs and CFOs of Indian exporters, traders, distributors and manufacturers whose UAE or Gulf orders are growing, and who want to know whether a Dubai company makes sense, how to set one up, and what India and the UAE each require.

At a Glance

Why now?: Dubai's non-oil trade with India reached a record AED 222.5 billion in 2025, up 15%. 7,579 Indian companies joined the Dubai Chamber of Commerce in the first half of 2026. The India–UAE trade agreement (CEPA) has been in force since May 2022.
When does it make sense?: There is no fixed size. The usual signs: UAE orders are rising; a distributor is becoming critical to your sales; customers ask for a UAE invoice; you need stock or people on the ground; or your board is discussing Gulf expansion.
Can we own 100%?: Yes. Free zone companies can be fully foreign-owned. Since 1 June 2021, most mainland activities also allow 100% foreign ownership with no local partner. Some strategic activities follow separate rules.
How fast?: A free zone licence is often issued within 1 to 3 weeks once documents are complete. The bank account is usually the slowest step (2 to 10 weeks). A realistic plan is 3 to 4 months from decision to a company that can invoice and bank.
What tax do we pay in the UAE?: 0% on taxable profit up to AED 375,000 and 9% above. A free zone company can pay 0% on qualifying income if it meets every condition. If it fails one, it is taxed at the standard rate on all income for that year and the next four. VAT is 5%. Customs duty on most goods is 0% or 5%.
Can profits be taken back to India?: Yes. The UAE does not withhold tax on dividends. India taxes dividends from a foreign subsidiary at your company's normal rate. Profits kept in the UAE company bear only UAE tax until they are paid to you.
Does routing goods through Dubai give CEPA benefits?: No. CEPA benefits depend on where the goods were made and whether they meet the rules of origin.
What are the main risks?: Higher freight cost and less certain delivery while Hormuz is disrupted; losing the 0% free zone rate; the Dubai company being treated as Indian-resident (POEM); rejected CEPA claims; bank account delays.

Is This Route Right for You?

It usually fits when

UAE orders are rising and one importer or distributor controls your customer relationships.
Customers ask for UAE invoices, local stock or faster delivery.
You sell in several Gulf, African or CIS countries through separate agents.
You already buy goods from other countries to sell on, or customers ask for products you do not make.
Someone senior will work in Dubai: sales, purchasing or operations.

Think twice when

Your UAE sales are small or occasional. A good distributor agreement may serve you better.
The main reason is a lower tax rate. UAE benefits depend on real activity there, and India can tax a UAE company managed from India.
Decisions would still be made in India and nobody would work in Dubai.
You cannot absorb higher freight costs or slower delivery while Gulf shipping is disrupted.
You expect a Dubai company to give CEPA benefits on goods made outside India.

How Greenwolf Helps

Setting up a UAE company is the easy part. Setting up the right UAE structure around your existing Indian business is where the real work begins.

01
First, we tell you whether you need a UAE company at all.
We look at your products, customers, distributors, UAE and Gulf orders, and shipping routes. Sometimes a stronger distributor agreement or direct export from India is enough, and we will say so. If a UAE company makes commercial sense, we tell you why, and what role it should play: local market, Gulf stock base, re-export hub or regional trading company.
02
We identify the right UAE setup.
Free zone or mainland? RAKEZ, DMCC, JAFZA, another free zone or Dubai mainland? Trading, general trading or industrial licence? Do you need a warehouse, a Designated Zone for your distribution model, or a route to sell onshore? We compare the practical options on your products, customers, cost and plans, not on where incorporation is cheapest.
03
We structure India and the UAE together.
This is where most of the value sits. We decide who should own the UAE company (your Indian company or the promoters), how it is funded from India within the overseas investment limits, which functions stay in India and which move, how goods are priced between the two companies, how export proceeds come back within 9 months, how the 0% free zone rate is protected, and how profits eventually return to India.
04
We execute the setup through one coordinated team.
Licence and incorporation, bank account support, visas, UAE corporate tax and VAT registration, the e-invoicing provider, Form FC and overseas investment filings in India, and the supply agreement and transfer-pricing file between your companies. We coordinate the zone, the bank and our partners in the UAE, and work alongside your existing Indian accountants.
05
We keep both sides compliant after launch.
India and the UAE are run as one structure, not as two unrelated companies with two unrelated accountants. One calendar covers the UAE audit, tax return, VAT, Designated Zone report and e-invoicing, and the Indian Annual Performance Report, FLA return, transfer-pricing report and export realisation.
06
We help the structure evolve as the business grows.
Saudi Arabia and the wider GCC, Africa, warehousing, new shareholders, a joint venture or acquisition, a holding company, promoters moving to Dubai, or bringing profits back to India. Greenwolf stays on as your cross-border adviser as the structure becomes more complex.

Frequently Asked Questions

The full guide covers set-up routes, costs, tax on both sides, a timeline and the main risks.

Download the PDF guide

Is a Dubai company's income taxable in India?

Not normally, if the company is genuinely run from Dubai. India taxes the dividends you receive. If key decisions are made in India, India can treat the company as Indian-resident and tax all its income, unless its turnover is ₹50 crore or less in the year.

Free zone or mainland: which is better for a trading company?

Choose a free zone such as RAKEZ, JAFZA or DMCC if you hold stock for re-export or sell to other free zone businesses; it can pay 0% on qualifying income. Choose mainland if most sales go to UAE customers; it pays 9% above AED 375,000. Dubai free zone companies can also get a Dubai mainland licence.

How much does it cost to set up a free zone company in the UAE?

For a licence, a desk and one visa, published prices start at about AED 14,000 in RAKEZ and AED 20,750 in Meydan, rising to about AED 35,500–43,800 in DMCC and AED 40,000–55,000 in JAFZA. Warehouses, extra visas, audit and banking add more.

Can an Indian company open a subsidiary in Dubai?

Yes. An Indian company can invest up to 400% of its net worth under the automatic route, without RBI approval, reporting through its bank (Form FC). An individual can invest within the US$250,000 yearly LRS limit, with restrictions.

What is the time limit to receive export payment in India?

From 1 October 2026, export proceeds must reach India within 9 months of export, or 12 months if invoiced or settled in rupees. For goods in an overseas warehouse, the 9 months run from the date of sale. Your bank can extend it for good reason.

Is VAT charged in Dubai free zones?

It depends on the zone. Goods supplied within a Designated Zone, such as JAFZA, DAFZA or Fujairah Free Zone, are generally outside the scope of VAT. Services there, and supplies into the mainland, are normally taxed at 5%.

Is Jebel Ali port open?

Yes. DP World says Jebel Ali is operational and undamaged. But traffic through the Strait of Hormuz has been disrupted since 28 February 2026, and many lines land cargo at Fujairah or Khor Fakkan and truck it to Jebel Ali in bond.

Start with an assessment

In one conversation we will tell you whether this route makes sense for your business, which setup fits, what it involves and how long it will take.

Email us

Dubai Company Setup for Indian Exporters and Traders

The Short Answer

At a Glance

Is This Route Right for You?

It usually fits when

Think twice when

How Greenwolf Helps

First, we tell you whether you need a UAE company at all.

We identify the right UAE setup.

We structure India and the UAE together.

We execute the setup through one coordinated team.

We keep both sides compliant after launch.

We help the structure evolve as the business grows.