India is a global hub for business, offering a plethora of opportunities for UAE entrepreneurs. The India-UAE bilateral trade reached $72.87 billion in FY 2021-22, marking a 68.4% year-on-year increase compared to the previous year. Indian exports to the UAE totaled $28.05 billion, while imports from the UAE amounted to $44.82 billion during this period.
The Comprehensive Economic Partnership Agreement (CEPA) aims to boost annual bilateral non-oil trade to $100 billion in the next five years. If you are a UAE entrepreneur looking to register a company in India, this rapidly growing market offers an attractive destination for business expansion.
But how can businessmen successfully register a company in India from the UAE? The incorporation process in India involves understanding the Indian legal frameworks, and compliance requirements.
At Commenda, we help the Arab entreprenuers incorporate companies in India. Commenda’s expertise includes automating sales tax, a professional team of accountants and lawyers, and incorporation services.
Steps to register a company in India from the UAE
The journey to register a company in India from the UAE can feel challenging without proper guidance. Commenda breaks down the process into nine easy steps. By following these steps, you’ll have a clear understanding to set up and incorporate in India from the UAE.
Step 1: Choose a Business Structure and State of Incorporation
The first step in registering your company in India is selecting a legal structure that aligns with your business objectives. Below are the most common options:
1. Private Limited Company (Pvt Ltd)
- Best for: Startups and businesses who are planning to scale or raise external funding.
- Liability Protection: Limited liability ensures that personal assets of shareholders are protected in case of financial losses.
- Compliance Complexity: High; involves regular audits, annual filings, and adherence to corporate governance standards.
2. Limited Liability Partnership (LLP)
- Best for: Small to medium-sized enterprises (SMEs) seeking operational flexibility and limited liability.
- Liability Protection: Partners’ liability is limited to their investment in the LLP.
- Compliance Complexity: Moderate; simpler than a Pvt Ltd company but still requires annual filings and adherence to LLP Act regulations.
3. Branch Office
- Best for: Established Emirati corporations looking to expand operations in India without forming a separate legal entity.
- Liability Protection: Limited to the parent company, but the branch office remains under Indian regulatory supervision.
- Compliance Complexity: Moderate to High; requires approval from the Reserve Bank of India (RBI) and strict compliance with Foreign Exchange Management Act (FEMA) regulations.
Always consult with legal and financial professionals to determine the best fit for your business goals.
Step 2: Obtain a Digital Signature Certificate (DSC)
A Digital Signature Certificate (DSC) is an electronic key required to sign digital documents submitted to government portals, including the Ministry of Corporate Affairs (MCA). You can apply for a DSC through Certifying Authorities (CAs) with original supporting documents. Generally, CAs issue DSC within a day.
Step 3: Create an Account on the MCA Portal
The third step in registering a company in India from the United Arab Emirates is creating a user account on the MCA (Ministry of Corporate Affairs) portal. This account is used to access registration forms, submit documents, and manage compliance tasks online.
Step 4: Apply for a Director Identification Number (DIN)
Every director in an Indian-registered company must have a Director Identification Number (DIN). To obtain the DIN, directors need to fill out the SPICE+ form, and provide identity proof with personal details. The SPICE+ form is the web-based form used for registering companies in India. It is part of the Govt. of India’s Ease of Doing Business initiative (definitely check this out if you are planning to incorporate in India).
This DIN is used for all legal purposes during your Indian incorporation. Incorporation in India requires a minimum 2 directors and 2 shareholders, who can be the same person. One of the directors must be an Indian resident.
Step 5: Reserve a Unique Company Name
After obtaining the DIN, the next step is to reserve a company name through the RUN (Reserve Unique Name) service on the MCA portal. RUN allows you to easily reserve a company name without requiring any digital signature. Your chosen name must follow the guidelines laid out by the MCA, some of which are -
- The proposed name must not be identical or similar to any already existing company registered under the Companies Act, 2013.
- The name should not have offensive or undesirable words or violate any laws, as determined by the Central Government.
- Names suggesting affiliation with the Central or State Government or any local authority are prohibited unless approved by the respective authority.
If your name follows the above guidelines, submit your chosen name with the required fees. The MCA then sanctions your chosen name.
Step 6: Prepare MOA and AOA Documents
Draft the Memorandum of Association (MOA) and Articles of Association (AOA). The MOA defines your company’s core objectives, structure, and scope of operations. The AOA defines the internal rules, regulations, and governance framework of your company.
Both documents must be finalized and submitted during the registration process.
Step 7: Submit the Incorporation Application
Fill out the SPICE+ form and upload the MOA, AOA, and all supporting documents to the Registrar of Companies (RoC) via the MCA portal. You must submit your documents to the RoC to the jurisdiction where your place of business falls. Double-check all entries and documents for accuracy before submission.
Step 8: Receive the Certificate of Incorporation
Once the RoC verifies your application and documents, you’ll receive a Certificate of Incorporation. This official document confirms that your company is successfully registered in India and is now legally recognized. You will also receive the Certificate of Commencement of Business. A public limited company must have this certificate before it does its first business.
Step 9: Apply for PAN, TAN, and GST Registration
After incorporation, you should apply for a Permanent Account Number (PAN), which is essential for taxation purposes, a Tax Deduction and Collection Account Number (TAN) to manage tax compliance requirements, and Goods and Services Tax (GST) registration to adhere to India’s indirect tax regulations.
In case you get stuck in the process, consulting Commenda’s incorporation team can help you incorporate your company in India. Reach out to us today to start your journey!
What Are the Benefits of India Company Registration from the United Arab Emirates?
Registering a company in India from the United Arab Emirates offers numerous advantages for entrepreneurs looking to scale their ventures globally. Here’s why it’s a popular choice:
1. Access to a Massive Untapped Market
India, ranked third-largest economy in Asia by GDP, offers an enormous untapped market for foreign businesses. With a population exceeding 1.4 billion, India supports the expansion of your business’s revenue streams and global reach. The Indian government actively supports Foreign Direct Investment (FDI) enabling easier market entry for global companies. It has signed Double Taxation Avoidance Agreements (DTAA) with several nations, reducing tax burdens for foreign businesses.
2. Cost-Effective Business Operations
Setting up a Limited Liability Company (LLC) in India is a cost-effective option for Emirati businesses. With lower electricity costs, affordable labor, and a low cost of living, India emerges as a top choice for businesses all over the world. Additionally, domestic travel and logistics costs are relatively inexpensive, further reducing operational expenditures.
3. A Young and Skilled Labor Force
India is home to a workforce of over 437.2 million, with a young population of median age 28.4 years. This youthful workforce brings newer perspectives for businesses aiming to innovate. English is widely spoken, particularly in professional and business environments, allowing Emirati companies to communicate easily. The presence of a huge talent pool across various industries makes India a hotspot to build strong, capable teams.
What Are the Documents Required to Start a Company in India from the United Arab Emirates?
Registering a company in India from the United Arab Emirates requires precise documentation and adherence to regulatory compliance. Below is a breakdown of the key requirements to guide you:
1. Indian Registered Address:
A physical Indian address is mandatory for company registration in India. This address serves as the official correspondence location for receiving legal and government communications. If you do not have an operational office in India, you can use a virtual address as long as it fulfills legal requirements. Additionally, you must appoint at least one resident Indian director who will act as the primary point of contact for regulatory authorities.
2. Director Identification Number (DIN):
All directors must obtain a Director Identification Number (DIN) from the Ministry of Corporate Affairs (MCA). This unique number is essential for directorship in Indian companies and must be included in the company incorporation application.
3. Digital Signature Certificate (DSC):
A Digital Signature Certificate (DSC) is required for digitally signing company incorporation documents, including the e-MoA (Memorandum of Association) and e-AoA (Articles of Association).
4. Identification and Address Proof:
Emirati directors looking to register a company in India must provide a valid passport copy (notarized and apostilled) serving as the primary proof of identity. Additionally, they need a valid business visa issued by the Indian consulate, which verifies their legality to conduct business in India. A proof of address, such as a recent utility bill or bank statement dated within the last two months, is needed to establish their current residential address.
5. Articles of Association (AoA) and Memorandum of Association (MoA):
These documents outline the company’s objectives, ownership structure, and operational guidelines. Both documents must be drafted carefully and filed with the Registrar of Companies (RoC).
6. PAN, TAN & GST Registration:
After incorporation, the company must apply for:
- Permanent Account Number (PAN) for tax purposes, compare it with the Tax Registration Number (TRN) issued by the Federal Tax Authority.
- Tax Deduction and Collection Account Number (TAN) for managing tax deductions.
- Goods and Services Tax (GST) registration, if applicable, based on the company’s activities and turnover.
7. Compliance with Foreign Direct Investment (FDI) Regulations:
Ensure your business activity aligns with India’s FDI policy. Certain sectors fall under the Automatic Route, while others require prior approval from the Reserve Bank of India (RBI) or the relevant ministry.
8. Bank Account Setup:
To operate in India, your company will need an Indian business bank account. The presence of a resident Indian director is usually mandatory for account opening.
Meeting the above requirements ensures that your company is legally compliant and ready to operate in India. Consulting a professional service provider like Commenda is highly recommended to streamline the incorporation process.
What Does it Cost to Run an Indian Company?
Registering a company in India involves government fees, professional expenses and other additional costs.
Company incorporation in India from the United Arab Emirates total cost depends on factors like the number of directors, number of members, authorized share capital, and professional fees. The name reservation fee is around $12. For a Private Limited Company, using the SPICe+ form, the cost generally ranges between $70 to $350, depending on the specific requirements.
Additional Registration Costs
Apart from company incorporation, businesses often need other registrations:
- GST Registration
- Import Export Code (IEC)
- Professional Tax Registration
- EPF Registration
- MSME Registration
These registrations can cost anywhere between $80 to $180.
Ongoing Compliance Costs
Once registered, companies must meet mandatory compliance requirements like:
- Board Meetings
- Director Disclosures
- Auditor Appointments
- Annual General Meetings (AGM)
- Annual Returns (Form MGT-7)
- Financial Statements (Form AOC-4)
- Statutory Audits
Compliance costs can range from $85 to $250 annually. Ongoing compliance and regulatory filings are equally important to ensure smooth business operations.
Opening a Business Bank Account in India
Opening a business account is important for managing a company's finances efficiently. A business account simplifies cash management, and keeps your business operations away from your personal finances.
To open a business account in India, businesses must first choose the right bank by comparing services, features, and fees. Next, they must select the appropriate account type, usually a Current Account, based on their operational needs. Documentation is key—essential documents like company registration certificates, PAN cards, and address proofs must be prepared and verified.
After completing the application process and depositing the minimum initial amount (often $25-45), the account is activated. Businesses can then enjoy benefits like digital banking tools, cheaper credit options, and tailored financial solutions.
Overcoming Challenges in Indian Company Incorporation from the United Arab Emirates
Incorporating a company in India from the United Arab Emirates can be daunting due to cultural, compliance, and tax complexities. Common Challenges include:
- Regulatory Complexity: India's multi-layered regulatory system, including FDI rules, tax laws, and labor regulations, can be time-consuming and legally intricate to understand.
- Cultural Differences: Misunderstanding cultural preferences and consumer behavior can cause product misalignment and marketing failures in India’s diverse market.
- Price Sensitivity: Indian consumers are known to prioritize value over brand prestige, hence businesses must focus on product affordability without compromising quality.
- Local Competition: Established Indian brands have strong market roots and consumer trust, which makes it challenging for foreign players to gain traction without localization.
- Infrastructure Challenges: Inconsistent logistics, regional infrastructure gaps, and supply chain inefficiencies can delay operations and increase costs for new entrants.
Commenda offers an end-to-end incorporation service curated for Emirati business owners, addressing tax, compliance and incorporation issues. From providing expert planning and guidance on selecting business structures, state of incorporation to handling all the boring paperwork, Commenda will be by your side. Post incorporation, Commenda ensures your business remains in good standing with annual filings and tax reporting.
How Does Commenda Help You to Incorporate in India?
Commenda simplifies the question of how to register a business in India from the United Arab Emirates offering custom solutions for your business.
- Quick Onboarding
Commenda's platform provides an easy onboarding process for global entrepreneurs. With their expertise, setting up an Indian entity becomes seamless, even for first-time founders.
- Compliance Made Simple
Commenda’s CommendaOS ensures your business remains compliant, tracking deadlines and automating processes like sales tax filing across all 50 states.
- All Purpose Dashboard
Commenda offers cost-effective solutions, from incorporation to ongoing compliance support. Businessmen can monitor global business activities through a single dashboard, remaining compliant with Indian authorities.
- End-to-End Support
With over 250 satisfied cross-border businesses, including startups and multinational corporations, Commenda assists with every step, including document preparation, compliance checks, and accounting integration. The team also provides access to pre-vetted accountants and legal experts, ensuring you meet Indian regulations without a sweat.
FAQs on Registering a Company in India from the United Arab Emirates
1. Do I need an Indian visa to register a company in India from the UAE?
No, you don’t need an Indian visa to register a company. However, if you plan to manage operations in person, a valid business visa is required.
2. Are there any specific intellectual property protection laws in India for foreign businesses?
Yes, India has robust intellectual property (IP) laws that protect trademarks, patents, and copyrights, aligning with international standards like TRIPS.
3. Is it mandatory to have an Indian partner or director?
No, but at least one director must be an Indian resident.
4. How can Commenda help with company registration in India?
Commenda offers end-to-end services, including compliance, entity management, and ongoing support, ensuring a hassle-free setup for Emirati entrepreneurs in India.
Conclusion
Incorporating a business in India opens doors to a fast-growing market and exciting opportunities. But the legal rules, cultural differences, and operational setup can be tricky.
At Commenda, we do it right, and we do it fast. Commenda’s experts handle legal compliance, tax advisory, and market-entry strategies, so you can focus on growth.
Stay compliant, save time, and avoid costly mistakes with Commenda by your side. Schedule your free consultation to start your Indian business journey with confidence!
References -
- India Country Commercial Guide
- Ministry Of Corporate Affairs - MCA Services
- Integrated Government Online Directory : Union Government : PSUs / JVs / Companies / Societies
- National Portal of India
- Startup India
Viren Mathias
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