Hey experts , I would like to know if i would like to open a dubai based company in which no transctions would be involing india as in buying from x country and selling in z country but i am a citizen of india , Could you please guide me the legal and tax implications . If i also star living abrod will it change or help
observed from your questions, the company will be a private company owned completely by you. You will be the whole and sole decision maker.
if my above understanding is correct, then it is better for you to shift in Dubai, then there will be no tax implications in India.
However, if you do not shift in Dubai, POEM may trigger in India and the company will be considered resident in India and have to pay taxes in India, subject to India Dubai tax treaty, if any.
You could very well start your company in dubai and there is no need that you should have the transaction with India . The income of the company will be taxed in Dubai based on the income tax law of Dubai.
However if you stay in India , your personal global income shall be taxed in India depending upon the tax law .
So the company in Dubai is a separate entity and you in India are separate entity for tax purpose .
We can guide you on the complete taxation of Dubai or any where in the world .My mail id is prakash@psc.co.in
Regards
no problem , there will not be any tax
In case of resident of India, his global income is taxable in India. However, in case of NRI, whatever income he has received in India would be taxable in India. So, it would be better if you start living abroad.
Dear Sir,
You can set up company is dubai with the ownership jointly held in your name and dubai resident as per the local rules. you can operate the entire business and it will have no legal taxability in india except when you bring this fund to india in any form like interest on capital etc.
Dear Sir,
Firstly I would like to congratulate you on your new venture.
Secondly you not worry about the Taxes. The Profits generated by your Company in Dubai will not be taxed in India.
But if any such income of the company is passed on to you, then such amount will be taxed in your hands in India as you are an Indian resident.
Trust that clarifies your query.
Feel Free to get back for any further clarifications.
Thanking You.
Regards,
CA Rohit R Sharma
BCOM, ACA, LLB - GEN, CERT. FAFP
