• Making company in Middle East

Dear sir
I want to open a company in dubai or oman ???????? 
I am a resident Indian 
Do I have to declare it in india to income tax department that I am making the company there 

Is my income in that company taxable in india ?
I am not talking about my income 
I am talking about that dibai based company in on e
In that dubai company my holding will be 49 percent and 51 percent will be local partner who is arbaic
Asked 7 years ago in Business Law

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4 Answers

1. The income earned in abroad is not taxable in India if the money is not remitted to india.

2. Hence there is no requirement to declare it in your ITR in India.

Devajyoti Barman
Advocate, Kolkata
22920 Answers
498 Consultations

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you must disclose to income tax authorities your investments made abroad in company

2) income earned from your investments in form of dividends or capital gain would be taxable in india

Ajay Sethi
Advocate, Mumbai
95208 Answers
7610 Consultations

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tax implication in India depends on your residential status.

n India, as in many other countries, the charge of income tax and the scope of taxable income varies with the factor of residence. There are two categories of taxable entities viz. (1) residents and (2) non-residents. Residents are further classified into two sub-categories (i) resident and ordinarily resident and (ii) resident but not ordinarily resident. The law prescribes two alternative technical tests of residence for individual taxpayers. Each of the two tests relate to the physical presence of the taxpayer in India in the course of the “previous year” which would be the twelve months from April 1 to March 31.

A person is said to be “resident” in India in any previous year if he

is in India in that year for an aggregate period of 182 days or more; or

having within the four years preceding that year been in India for a period of 365 days or more, is in India in that year for an aggregate period of 60 days or more.

The above provisions are applicable to all individuals irrespective of their nationality. However, as a special concession for Indian citizens and foreign citizens of Indian origin, the period of 60 days referred to in Clause (b) above, will be extended to 182 days in two cases: (i) where an Indian citizen leaves India in any year for employment outside India; and (ii) where an Indian citizen or a foreign citizen of Indian origin (NRI), who is outside India, comes on a visit to India.

In the above context, an individual visiting India several times during the relevant “previous year” should note that judicial authorities in India have held that both the days of entry and exit are counted while calculating the number of days stay in India, irrespective of however short the time spent in India on those two days may be.

A “non-resident” is merely defined as a person who is not a “resident” i.e. one who does not satisfy either of the two prescribed tests of residence.

T Kalaiselvan
Advocate, Vellore
85409 Answers
2237 Consultations

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How do I send money to buy shares in the company in dubai ?

Should I send from india from my account ?

How much I can send one time ?

Anyone stepping into a foreign land must take care of the laws, rules and

regulations of the host country. Each country is different and keeping abreast of the laws of

different countries can indeed be a challenge.

Reserve Bank of India controls and regulates investment in foreign entities by persons who

are residents of India.

Investment by persons resident in India does not need any approval in any of the following


a) Under Liberalized Scheme by individuals up to USD 250,000 per annum

b) Under General Permission for funds held in foreign currency accounts

c) Under Automatic Approval Route – not exceeding 400 per cent of net worth

Under this Scheme, Authorised Dealers (Banks dealing in foreign exchange) freely allow

remittances by resident individuals up to USD 250,000 per financial year (April-March) for

any permitted current or capital account transactions or a combination of both. The facility is

available to all resident individuals including minors.

Resident individuals are also permitted to acquire and hold immovable property using this

scheme. In addition, the scheme may be used to purchase shares (of listed companies or

otherwise) or debt instruments or any other asset outside India without prior approval of the

Reserve Bank.

T Kalaiselvan
Advocate, Vellore
85409 Answers
2237 Consultations

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