• Establishment type

We want want to establish an entity in Dubai to export from India to that company in bulk, who will than sale there to buyers as they require there.
I will manage India work he will manage Dubai work. he will go to go dubai on permanent basis to manage business over there. he will leave there more than 8 months a year.
Expected turnover is more than 100 crores a year.

Which of the below options are tax beneficial and fully compliant of law.

1.Open single person entity in his name in Dubai, and he become beneficiary for full profit of that firm in Dubai. i will get full profit from India firm.
2. We both have partnership firm India and Dubai and he will get profit from India and Dubai both firm, same for me.
3.open private limited company with he and me as shareholders both in India and Dubai.
4. Open private limited company India and open Dubai company as subsidiary.
any more suggestion.

Tax implication of options kindly guide both for me and him.

Kindly help
Asked 3 years ago in Income Tax

This will need a detailed study as to type of products that will be sold and we also need to check FEMA regulations and transfer pricing regulations and whether 100% transaction will be done only between two entities.

Opening an entity with common key persons will attract transfer pricing related issues.

Also, we need to consult and discuss about the tax efficient entity in Dubai.

 

I would recommend to consult separately/ personally as this will be a long issue.

 

Hope you find the information helpful, if yes do rate if 5 and provide your valuable feedback for my improvement.

Thank you.

Naman Maloo
CA, Jaipur
4292 Answers
101 Consultations

Due to limited information, it is difficult to advise on the business constitution in India and Dubai. Based on limited information, open separate private limited companies in India and Dubai.

Vivek Kumar Arora
CA, Delhi
4951 Answers
1105 Consultations

Ask a Chartered Accountant

Get tax answers from top-rated CAs in 1 hour. It's quick, easy, and anonymous!
  Ask a CA