7,579 Indian companies joined Dubai Chambers in the first half of 2026. DIFC's active companies rose 28% in 2025 to 8,844. Under CEPA, the UAE opened 111 of 160 services sub-sectors to Indian firms. India also eased two tax rules for service exporters in 2026.

When does it make sense?

There is no fixed size. Our rule of thumb: 15–30% or more of revenue from the GCC, repeat UAE clients, a client asking for a UAE contract, a need for a local salesperson, or Indian clients expanding into the Gulf.

Yes, in free zones and in most mainland activities. Regulated professions, such as law and audit, follow separate rules.

A free zone licence often takes 1 to 3 weeks. The bank account is slower (2 to 10 weeks). Plan on 3 to 4 months in total.

What tax do we pay in the UAE?

0% on taxable profit up to AED 375,000 and 9% above. Consulting and IT fees are generally not "qualifying income", so the free zone 0% rate rarely applies. Plan on 9%. VAT is 5% on standard-rated supplies.

Can our Indian team keep delivering?

Yes. India delivers and charges the UAE company a fair price. Services sold to a separate UAE company can be zero-rated for GST.

What are the main risks?

Tax officers questioning the price between the two companies; India treating the UAE company as Indian; assuming a 0% rate; Indian staff creating a taxable presence; regional disruption. All can be planned for.

GreenwolfAdvisorsGlobal Advisory Firm

India → UAE · Services corridor

Expanding an Indian Services or IT Business to Dubai

A decision guide for Indian IT, consulting and B2B services firms setting up in Dubai and the wider UAE. Information as at 7 October 2026.

Download the PDF guideDownload the full guide (PDF, 16 pages)

The Short Answer

Dubai can play four roles for an Indian service business. It can be a market, where UAE clients buy from you. It can be a base for the Gulf, where one team handles sales and contracts for several countries. It can be a regional headquarters for the Middle East and Africa. Or it can be the commercial front of a company that still delivers from India.

Unlike goods, services do not need to pass through Dubai. Your engineers and consultants stay in India. Dubai holds the client relationships, contracts and regional leadership. Many firms start with the first role and add others later. Some never need more.

Who this guide is for: Founders, CEOs and CFOs of Indian IT, software, consulting, marketing, engineering and other B2B service firms that already win work in the Gulf, or plan to, and want to know whether a Dubai company is worth it, how to set it up, and what it does to their tax in both countries.

At a Glance

Why now?: 7,579 Indian companies joined Dubai Chambers in the first half of 2026. DIFC's active companies rose 28% in 2025 to 8,844. Under CEPA, the UAE opened 111 of 160 services sub-sectors to Indian firms. India also eased two tax rules for service exporters in 2026.
When does it make sense?: There is no fixed size. Our rule of thumb: 15–30% or more of revenue from the GCC, repeat UAE clients, a client asking for a UAE contract, a need for a local salesperson, or Indian clients expanding into the Gulf.
Can we own 100%?: Yes, in free zones and in most mainland activities. Regulated professions, such as law and audit, follow separate rules.
How fast?: A free zone licence often takes 1 to 3 weeks. The bank account is slower (2 to 10 weeks). Plan on 3 to 4 months in total.
What tax do we pay in the UAE?: 0% on taxable profit up to AED 375,000 and 9% above. Consulting and IT fees are generally not "qualifying income", so the free zone 0% rate rarely applies. Plan on 9%. VAT is 5% on standard-rated supplies.
Can we take money out?: The UAE withholds no tax on dividends. India taxes them at your company's normal rate (25.17% effective on the 22% regime).
Can our Indian team keep delivering?: Yes. India delivers and charges the UAE company a fair price. Services sold to a separate UAE company can be zero-rated for GST.
What are the main risks?: Tax officers questioning the price between the two companies; India treating the UAE company as Indian; assuming a 0% rate; Indian staff creating a taxable presence; regional disruption. All can be planned for.

Is This Route Right for You?

It usually fits when

15–30% or more of your revenue comes from the GCC.
Clients ask for a UAE contract or invoice.
You need a local salesperson or account leader.
Your Indian clients are moving into the Gulf.
Someone senior will work from Dubai.

Think twice when

Your UAE revenue is small or occasional.
Lower tax is the main reason. Once profits come home, it usually is not lower.
Decisions would still be made in India.
Clients are happy buying from India.
A partner may serve you better for now.

How Greenwolf Helps

Getting a Dubai licence is the easy part. Setting up a Dubai company that wins and signs work while your team keeps delivering from India, without creating tax problems in either country, is where the real work begins.

01
First, we tell you whether you need a UAE company at all.
We look at your revenue by country, key clients, pipeline and how your clients buy. Many service firms can keep selling from India, or work through a Dubai partner, and we will say so. If a UAE company makes commercial sense, we tell you what role it should play: local contracting entity, Gulf sales base or regional headquarters.
02
We identify the right UAE setup.
Free zone or mainland? DMCC, IFZA, Meydan, RAKEZ, DIFC, Dubai Internet City or Dubai mainland? Which licence covers your services, how many visas you need, and whether your clients need you to contract onshore. We compare the options on your clients, activities, cost and plans, not on where the licence is cheapest.
03
We structure India and the UAE together.
This is where most of the value sits. Who owns the UAE company and how it is funded from India; who wins, signs, delivers and carries risk; how India charges Dubai for delivery (including whether the 15.5% safe harbour applies); how GST export treatment is kept; how to avoid the Indian team creating a taxable presence; and how profits come back to India. We plan the tax on 9%, so there are no surprises.
04
We execute the setup through one coordinated team.
Licence and incorporation, bank account support, visas, UAE corporate tax and VAT registration, Form FC and overseas investment filings in India, the services agreement and transfer-pricing file between your companies, and client contract templates. We coordinate the zone, the bank and our UAE partners, and work alongside your existing Indian accountants.
05
We keep both sides compliant after launch.
One calendar for both countries: UAE audit, tax return, VAT and e-invoicing; Indian Annual Performance Report, FLA return, transfer-pricing report and GST export filings. The same team sees both sets of books, so the pricing between the companies stays consistent.
06
We help the structure evolve as the business grows.
Saudi Arabia and the wider GCC, Africa, a larger Dubai team, partners or acquisitions, a regional holding company, founders relocating to Dubai, or bringing profits back to India. Greenwolf stays on as your cross-border adviser as the business grows.

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

Does an Indian IT company need a Dubai company to sell in the UAE?

No. Many Indian firms invoice UAE clients from India. You need a UAE company when clients insist on a local contract, you hire people in Dubai, or you bid for local tenders. If UAE revenue is small or occasional, a partner may be enough.

Is a Dubai free zone company tax-free for consulting income?

Usually not. Consulting and IT services are not qualifying activities. Fees from mainland clients and from clients outside the UAE are taxed at 9% above AED 375,000. Only fees from other free zone companies can qualify for 0%. Plan your numbers on 9%.

Which free zone is best for a consulting firm?

DMCC, IFZA, Meydan and RAKEZ all license consulting and technology services, at different prices; RAKEZ is the cheapest but sits outside Dubai. DIFC suits firms serving banks and wealth managers. Choose by where your clients are and whether they need you onshore.

Can Indian employees work for a Dubai company from India?

Not simply. A Dubai company employing people in India may create a taxable presence and payroll duties in India. The usual answer is that the Indian company employs the team and charges the Dubai company a fair price.

How is profit from a Dubai company taxed when brought back to India?

The UAE takes no tax on dividends. India taxes them at your company's normal rate, about 25.17% under the 22% regime. Add the UAE's 9% and total tax can exceed what you would pay selling from India.

Do we charge GST on services our Indian company provides to our Dubai company?

Usually not. Services to a separate UAE company can be zero-rated exports if the conditions are met. Since 30 March 2026, intermediary and sales-support services to overseas recipients can also qualify.

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

Expanding an Indian Services or IT Business to Dubai

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.