Liberalised Remittance Scheme - Your Ultimate Guide!
LRS is a scheme provided by the Reserve Bank of India (RBI) that allows resident individuals to remit a certain amount of money per financial year to other countries, including Dubai, for permissible current or capital account transactions. The current limit for remittance under LRS is USD 250,000 per financial year.
One way to receive LRS transfer in Dubai is by forming a company. Dubai is a popular destination for foreign investors due to its strategic location, business-friendly environment, and tax incentives. The process of forming a company in Dubai is relatively straightforward, and there are various options available, such as a Free Zone Company, or Offshore Company or an Limited Liability Company (LLC), depending on the nature of the business and the requirements of the investor.
Once a company is formed in Dubai, it can receive LRS remittances from India for permissible transactions such as investment in the company, purchase of property, or payment for services rendered by the company. The company can also open a bank account in Dubai to receive the remittance, which can be used for business operations or to repatriate profits or capital back to India or other countries.
Forming a company in Dubai has several advantages for Indian residents who want to receive LRS transfer. Firstly, it provides a legal structure for doing business in Dubai, which enhances the credibility and reputation of the business. Secondly, it offers tax benefits and exemptions, which can help to reduce the overall tax liability of the company. Thirdly, it allows for easy repatriation of profits and capital back to India or other countries.
However, forming a company in Dubai also involves certain costs and requirements, such as registration fees, license fees, and compliance with local regulations and laws. It is advisable to seek the assistance of a professional consultant that specializes in company formation in Dubai to ensure that all the legal and regulatory requirements are met.
In conclusion, forming a company in Dubai is a viable option for Indian residents who want to receive LRS transfer for permissible transactions. It offers several advantages, such as legal structure, tax benefits, and easy repatriation of funds. However, it also involves certain costs and requirements that need to be carefully considered and fulfilled.