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Setting up a wholly owned subsidiary company in dubai

Nidhi Sharma (working) (21 Points)

29 November 2016

An IT company wants to start a wholly owned foreign subsidiary in UAE through the automatic route. I want to know 1. what are the applicable laws and the provisions for this? 2. what approvals the company needs to take and the concerned authority? 3. what is the procedure to get the approvals and the required documents to be submitted for the same?

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11 Replies

Dharmesh (Student) (1025 Points)
Replied 30 November 2016

The applicable laws would be FEMA read with RBI circular on Overseas Direct Investments

Once the company is incorporated you can remit the money or take up more shares through ODI automatic route.

The forms required to be submitted are ODI form part 1 , Form A2 RBI , Statutory Auditor certificate and other documents as specified by ypur AD.

Your AD will provide you all the forms and also guide you for submissions.

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Nidhi Sharma (working) (21 Points)
Replied 05 December 2016

so basically the first step would be approaching authorised dealer (AD) for same.

Dharmesh (Student) (1025 Points)
Replied 05 December 2016

first step would be to seek local help at uae and incorporate a company.
then u can designate a bank as authorised dealer and other things as i mentioned above.. pls note once u designate an AD then u cannot change or it would be tedious to change..

Dharmesh (Student) (1025 Points)
Replied 05 December 2016

however for once just speak to your AD bank and ask the procedure.

Nidhi Sharma (working) (21 Points)
Replied 05 December 2016

we have a local agent at UAE who will handle all the procedure for incorporating a WOS compant at dubai.

my only concern is prior to setting up a WOS at dubai do we require any RBI approval

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Dharmesh (Student) (1025 Points)
Replied 05 December 2016

No i dont think so..even your AD will confirm the same..i recently was involved in the same thing and even to me it seemed strange but yeah the only time when we approached our ad for approvals was post the incop. to remit the funds and undertake further investments.

Just speak to your AD or take a couple of more opinions.

Dharmesh (Student) (1025 Points)
Replied 05 December 2016

We recently incorporated one in DWC free zone dubai.

Nidhi Sharma (working) (21 Points)
Replied 05 December 2016

yeah even we planning for same..

was it a WOS or Branch office??

Dharmesh (Student) (1025 Points)
Replied 05 December 2016

Wos..we directly incorporated it..

Nidhi Sharma (working) (21 Points)
Replied 05 December 2016

Could u please list down a brief procedure how was it incorporated.

It will be of great help to me.

Thanks in advance.

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Dharmesh (Student) (1025 Points)
Replied 05 December 2016

Well we took local help out there..it depends in which duty free zone the company intends to be incorporated.. we just submitted the documents asked for and the company was formed..

if you need any specific info you can dm me