Go AD-Free with CAclubindia Pro and get a FREE CCI Coffee Mug. Subscribe Now!

Relocating to Dubai for Forex Trading: Legal Fund Transfer from India

23 April 2025

I am a stock trader in India and want to move to Dubai for spot forex trading to do it legally.
How can I use the capital in Dubai for forex trading — the same capital I used for stock trading in India?
is it possible legally?

Reply
Follow
Share

2 Replies

Rama chary Rachakonda (Master in Accounts & high court Advocate email ID:ramachary64@gmail.com voice no:9989324294) (7383 Points)
Replied 23 April 2025

Moving to Dubai for Forex Trading To trade forex in Dubai, you'll need to comply with the regulations set by the Dubai Financial Services Authority (DFSA) or the UAE's financial regulatory authorities.

Using Existing Capital - *Repatriation of funds*: You can transfer your existing capital from India to Dubai, but ensure compliance with Indian foreign exchange laws, such as the Liberalized Remittance Scheme (LRS). -

*Tax implications*: Consider the tax implications in India and the UAE for transferring funds and trading forex. Regulatory Requirements -

*Obtain necessary licenses*: You may need to obtain a license or register with a regulatory authority in the UAE to conduct forex trading activities. -

*Choose a regulated broker*: Select a forex broker regulated by a reputable authority, such as the DFSA or other recognized international regulators. Recommendations -

*Consult a financial advisor*: Consult a financial advisor or tax professional familiar with Indian and UAE regulations. -

*Understand UAE tax laws*: Understand the tax laws and regulations in the UAE, including any potential tax benefits or exemptions. -

*Comply with anti-money laundering (AML) regulations*: Ensure compliance with AML regulations in the UAE.

Legality of Using Existing Capital Using your existing capital for forex trading in Dubai is possible, but ensure you comply with all relevant regulations, including tax laws, foreign exchange laws, and regulatory requirements.

By following these guidelines, you can explore opportunities for forex trading in Dubai while ensuring compliance with relevant laws and regulations.

Upgrade to CAclubindia Pro. Subscribe Now!

Green Evil (3 Points)
Replied 23 April 2025

Sir, thank you for your reply.
As per RBI rules under the LRS, Indian residents cannot remit funds abroad for speculative forex trading.
So, how can a resident legally move existing capital in India if the goal is to trade forex in Dubai?"