Investing from United Arab Emirates
Last updated 18 October 2026 · By Pradeep Kumar, India Solar
In short:
an investor from United Arab Emirates can buy the Indian company that owns an operating solar plant under India's automatic foreign-investment route. India withholds
10%
tax on dividends paid to investors from United Arab Emirates who give a tax residency certificate and Form 10F. Investment treaty with India in force since 2024.
Your home-country rules
- No exchange controls on outbound investment.
- UAE companies pay 9% corporate tax; the participation exemption can cover Indian dividends where the holding is at least 5% and held for 12 months.
- Individuals pay no personal income tax in the UAE.
Tax treaty and legal protection
- India–UAE tax treaty: 10% Indian withholding on dividends; 5% on interest to banks and financial institutions, 12.5% otherwise.
- India–UAE Bilateral Investment Treaty in force since 31 August 2024. Investors must first pursue local remedies for three years before arbitration.
Documents you will need
- Trade licence or passport, Emirates ID, and proof of address
- UAE tax residency certificate and Form 10F
- Beneficial owner list and source of funds
- Board resolution for company investors
How we work with investors from United Arab Emirates
- Free-zone holding companies are common for Gulf investors.
- Sharia-compliant equity structures are available; interest-bearing instruments are avoided.
Related guides
- Tax on dividends from Indian solar companies, by country
- FDI rules for foreign buyers of Indian solar plants
- Buying an operating solar plant in India
Sources
Information as of October 2026. General information only, not tax or legal advice; rules change and depend on your circumstances.