International Practice

# India-UAE Cross-Border
Legal Advisory

United Arab Emirates

## United Arab Emirates Legal Services

The United Arab Emirates is the largest trading partner of India in the Middle East and one of the most strategically important destinations for Indian business expansion globally. Bilateral trade between India and the UAE exceeds $85 billion annually, with the Indian diaspora of over 3.5 million residents forming the single largest expatriate community in the Emirates. From free zone enterprises in Dubai and Abu Dhabi to mainland operations across the seven Emirates, Indian businesses have established a formidable presence spanning information technology, construction, healthcare, trading, financial services, and manufacturing. The India-UAE Comprehensive Economic Partnership Agreement (CEPA) has further strengthened commercial ties, creating preferential market access and tariff benefits that make the UAE an even more attractive destination for Indian enterprises.

At ESB Global Law Advisory, we provide comprehensive cross-border legal counsel from our Mumbai office for Indian companies, investors, and professionals engaging with the UAE market. Our practice leverages a thorough understanding of both Indian commercial law and the UAE's unique dual legal framework, which encompasses federal civil law, free zone regulations, and the common law systems operating within the DIFC and ADGM. Whether you are establishing a free zone company, acquiring freehold property, applying for a Golden Visa, structuring operations to benefit from CEPA, or resolving a commercial dispute before the DIFC Courts, our team delivers commercially pragmatic advice tailored to the India-UAE corridor.

### Free Zone Company Formation

The UAE's extensive network of over 40 free zones offers Indian businesses a range of strategic entry points, each designed to serve specific industries and commercial objectives. The Dubai Multi Commodities Centre (DMCC) is the world's leading free zone for commodities trading and is particularly popular with Indian traders in gold, diamonds, and agricultural products. Jebel Ali Free Zone (JAFZA), adjacent to the region's largest port, is the preferred choice for manufacturing, logistics, and distribution operations. For financial services, fintech, and professional services firms, the Abu Dhabi Global Market (ADGM) and the Dubai International Financial Centre (DIFC) operate as independent common law jurisdictions with their own courts, regulatory authorities, and company registration frameworks.

Free zone entities enjoy full foreign ownership without the need for a local partner, zero corporate tax on qualifying income, complete repatriation of capital and profits, and exemptions from import and export duties. We advise Indian businesses on selecting the optimal free zone based on their sector, target market, operational requirements, and long-term growth strategy. Our services cover the entire formation process including trade licence applications, visa quota allocation, office space arrangements, corporate governance documentation, and ongoing compliance with free zone authority regulations. For businesses requiring a dual presence, we also structure arrangements that allow free zone entities to operate on the UAE mainland through appropriate licensing mechanisms.

### Mainland LLC & Corporate Structuring

The UAE's amended Commercial Companies Law now permits 100% foreign ownership of mainland limited liability companies (LLCs) in most sectors, removing the previous requirement for a 51% Emirati shareholder. This landmark reform has opened significant opportunities for Indian businesses seeking to trade directly within the local UAE market, bid on government contracts, and establish a presence outside the confines of free zones. Mainland LLCs are licensed by the Department of Economic Development in the relevant Emirate and can operate freely across the entire UAE without geographic restrictions.

We advise Indian companies on the full spectrum of mainland corporate structuring, including company formation, memorandum of association drafting, corporate governance frameworks, and regulatory approvals for restricted activities that still require local service agent arrangements. Our practice extends to joint venture structuring with Emirati partners for projects in sectors such as defence, oil and gas, and government contracting where local participation remains commercially or legally advantageous. We also assist with branch office and representative office registrations for Indian companies that wish to establish a UAE presence without forming a separate legal entity.

### Golden Visa & Immigration

The UAE Golden Visa programme has become one of the most attractive long-term residency pathways for Indian nationals, offering 10-year renewable visas that provide stability and flexibility for investors, entrepreneurs, and skilled professionals. Indian nationals consistently rank among the top recipients of Golden Visas in the UAE. The programme is available to investors making real estate investments of AED 2 million or more, entrepreneurs with established businesses or innovative startup concepts, specialised professionals in fields including medicine, engineering, science, technology, and education, and outstanding students and academic achievers.

Beyond the Golden Visa, we advise Indian clients on the full range of UAE residency pathways including investor visas through free zone and mainland companies, employment visas and labour card processing, freelancer and virtual working permits under the new flexible work regulations, and family sponsorship arrangements. Our immigration practice covers the complete lifecycle from initial eligibility assessment and documentation preparation through to Emirates ID registration, medical fitness testing coordination, and visa renewal. We also advise on the implications of UAE residency for Indian tax obligations, particularly in the context of the Income Tax Act, 1961 and the India-UAE DTAA.

### India-UAE CEPA & Trade Compliance

The India-UAE Comprehensive Economic Partnership Agreement (CEPA), which entered into force in May 2022, represents the most significant bilateral trade arrangement between the two nations. Under CEPA, over 97% of Indian tariff lines enjoy preferential access to the UAE market, with immediate or phased elimination of customs duties on products spanning gems and jewellery, textiles and garments, agricultural products, pharmaceuticals, petrochemicals, and engineering goods. The agreement also provides improved market access for Indian service providers in sectors such as information technology, accounting, education, and healthcare, along with provisions on investment protection and digital trade facilitation.

To benefit from CEPA's preferential tariff rates, Indian exporters must comply with rules of origin requirements and obtain Certificates of Origin from designated authorities. We advise Indian businesses on CEPA compliance including product classification, rules of origin analysis, documentation requirements, and customs procedures. Our practice also covers the broader UAE regulatory landscape including VAT compliance under the Federal Tax Authority regime, Economic Substance Regulations, Ultimate Beneficial Ownership reporting, and Anti-Money Laundering obligations under the UAE's evolving compliance framework. For Indian companies operating across both the UAE and wider GCC markets, we provide guidance on leveraging the GCC Customs Union provisions alongside CEPA benefits.

### Real Estate & Property Investment

The UAE, and Dubai in particular, is one of the most popular destinations for Indian real estate investment. Indian nationals can purchase freehold property in designated areas across Dubai and Abu Dhabi, with no restrictions on the number of properties owned. Dubai offers freehold ownership in over 60 designated communities including Downtown Dubai, Dubai Marina, Palm Jumeirah, Business Bay, Jumeirah Village Circle, and Dubai Hills Estate. Abu Dhabi permits foreign freehold ownership in designated investment zones such as Saadiyat Island, Yas Island, Al Reem Island, and Masdar City. Property investments of AED 2 million or more qualify the purchaser for a Golden Visa, making real estate acquisition a dual-purpose strategy for investment returns and residency security.

We advise Indian investors on every stage of the property acquisition process, from initial market assessment and developer due diligence through to sale and purchase agreement negotiation, escrow account arrangements, Dubai Land Department registration, and post-acquisition management. Our guidance covers off-plan purchases and the protections available under RERA (Real Estate Regulatory Agency) regulations, secondary market transactions, commercial property acquisitions, and the structuring of property holdings through corporate vehicles for asset protection and succession planning purposes. We also address the Indian regulatory framework governing outward remittances under the Liberalised Remittance Scheme (LRS) and FEMA compliance for overseas property investments by Indian residents.

### Dispute Resolution & Arbitration

The UAE offers a sophisticated multi-layered dispute resolution framework that includes the DIFC Courts, ADGM Courts, UAE federal courts, and several prominent arbitral institutions. The DIFC Courts operate under common law principles with proceedings conducted in English, making them a familiar and accessible forum for Indian businesses accustomed to common law traditions. DIFC Court judgments are enforceable across the UAE through a well-established statutory framework and internationally through reciprocal enforcement arrangements. The ADGM Courts similarly operate as an independent common law jurisdiction within Abu Dhabi, offering an alternative forum for disputes connected to the ADGM free zone.

For arbitration, the Dubai International Arbitration Centre (DIAC) is the leading institutional arbitration centre in the region, while the ADGM Arbitration Centre and the DIFC-LCIA Arbitration Centre provide additional options. Arbitration remains the preferred mechanism for India-UAE cross-border disputes because arbitral awards are enforceable in both countries under the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards. We represent Indian clients in arbitration proceedings, advise on dispute resolution clause drafting, and assist with the enforcement of awards in India under the Arbitration and Conciliation Act, 1996 and in the UAE under Federal Law No. 6 of 2018 on Arbitration.

### Our India-UAE Legal Services Include

- Free zone company formation in DMCC, JAFZA, ADGM, DIFC, and other UAE free zones
- Mainland LLC incorporation with 100% foreign ownership structuring
- Branch office and representative office registration
- Golden Visa eligibility assessment, documentation, and application support
- Employment visa processing, labour card compliance, and freelancer permits
- India-UAE CEPA compliance, rules of origin analysis, and Certificate of Origin advisory
- UAE VAT registration, compliance, and Federal Tax Authority advisory
- Commercial contract drafting under UAE civil law and DIFC common law
- Freehold real estate acquisition, due diligence, and RERA compliance
- Joint venture and partnership structuring with Emirati counterparts
- DIFC Courts litigation and DIAC arbitration representation
- India-UAE DTAA advisory, transfer pricing, and cross-border tax structuring
- Economic Substance Regulations and Ultimate Beneficial Ownership compliance
- FEMA and LRS compliance for outward remittances from India to the UAE
- Anti-Money Laundering compliance and regulatory advisory

FAQ

## Frequently Asked Questions

### What are the main free zone options for Indian companies setting up in the UAE?

Indian companies can establish operations in over 40 free zones across the UAE, each tailored to specific sectors. The Dubai Multi Commodities Centre (DMCC) is ideal for trading companies, Jebel Ali Free Zone (JAFZA) suits manufacturing and logistics operations, Abu Dhabi Global Market (ADGM) is designed for financial services and fintech, and Dubai International Financial Centre (DIFC) caters to banking, insurance, and capital markets. Free zone entities benefit from 100% foreign ownership, full repatriation of profits, zero personal income tax, and customs duty exemptions on imports and re-exports. ESB Global advises Indian businesses on selecting the optimal free zone based on their sector, target market, licensing requirements, and long-term commercial objectives.

### Can Indian nationals obtain a Golden Visa in the UAE?

Yes, Indian nationals are among the largest groups of Golden Visa holders in the UAE. The Golden Visa programme offers 10-year renewable residency to investors who make a property investment of AED 2 million or more, entrepreneurs with qualifying business ventures, specialised professionals in fields such as medicine, engineering, science, and technology, outstanding students and graduates, and humanitarian pioneers. The visa allows holders to sponsor family members, remain outside the UAE for extended periods without losing residency status, and operate businesses across the Emirates. ESB Global assists Indian applicants with eligibility assessment, documentation, and the complete application process.

### How does the India-UAE CEPA benefit Indian exporters and service providers?

The India-UAE Comprehensive Economic Partnership Agreement (CEPA), which came into effect in May 2022, provides significant tariff reductions on over 97% of Indian exports to the UAE, covering sectors including gems and jewellery, textiles, agriculture, pharmaceuticals, and engineering goods. Indian service providers gain improved market access in sectors such as IT, accounting, education, and healthcare. The agreement also includes provisions on investment protection, digital trade facilitation, government procurement opportunities, and mutual recognition of professional qualifications. Indian businesses must obtain a Certificate of Origin to claim preferential tariff rates, and ESB Global guides clients through the documentation and compliance requirements to maximise CEPA benefits.

### Can Indian nationals buy property in the UAE?

Yes, Indian nationals can purchase freehold property in designated areas across the UAE, particularly in Dubai and Abu Dhabi. Dubai offers freehold ownership in over 60 designated communities including Downtown Dubai, Dubai Marina, Palm Jumeirah, and Business Bay. Abu Dhabi permits foreign freehold ownership in investment zones such as Saadiyat Island, Yas Island, and Al Reem Island. Property investments of AED 2 million or more qualify the buyer for a Golden Visa. Purchasers should be aware of the 4% Dubai Land Department registration fee, service charges, and the implications under RERA regulations. ESB Global provides end-to-end legal support for Indian investors covering due diligence, sale and purchase agreements, escrow arrangements, and post-acquisition compliance.

### How are India-UAE commercial disputes resolved?

India-UAE commercial disputes can be resolved through several mechanisms depending on the contract terms and the nature of the dispute. The DIFC Courts operate under common law principles and offer an internationally recognised forum with judgments enforceable across the UAE and in many foreign jurisdictions. The Dubai International Arbitration Centre (DIAC) provides institutional arbitration services, while the ADGM Arbitration Centre offers an alternative for disputes involving Abu Dhabi-based entities. Parties may also pursue litigation before the UAE federal courts, though proceedings are conducted in Arabic. India and the UAE do not have a bilateral treaty for reciprocal enforcement of court judgments, making arbitration the preferred mechanism for cross-border disputes as awards are enforceable under the New York Convention to which both nations are signatories.

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## Expert India-UAE
Legal Counsel

Navigate the UAE legal landscape with confidence. Our cross-border team provides strategic counsel for Indian businesses at every stage of their United Arab Emirates operations.

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