Please refer to replies in line below:
- Yes its absolutely legal to be the director of two or more companies at the same time. However, the status of director ( whole time director, Executive director, Non-executive director etc....) keeps on changing depending on your role in each company. For instance - One cannot be a whole time director in two companies at the same time as per Indian tax laws. However, this may differ in UAE basis their tax laws in place.
-Taxability of any income in India is solely determined by the residential status of the person in India. Both type of Visa would welcome different taxability patterns. If you are moving out of India, then both of them will offer good tax saving options as well. However, business incomes are often considered more attractive for tax saving in India as compared to employment income.
- Your Dubai earnings shall not be taxable in India if these conditions are satisfied:
A. Income should not be sourced or accrued in India
B. Your are Non resident In India for the period when such income is earned.
- You can absolutely shift your clients from current company to your new company. However, it will not completely become tax free as we will have to determine service PE applicability on the incomes of associated enterprises.
- You can always raise service invoices from Indian Company to UAE company. The rule is this, if you are a shareholder or director in both the companies, then such transactions are categorized under related party transaction because both the companies become associated.
If you are not common in both the companies, then it will be treated as simple service invoice raised to any other consumer.
- Yes you are right if you qualify to be NRI, then your Dubai sourced income shall not be taxable in India. you can either retain or bring to India as well without taxability provided FEMA compliances are taken care of.
- TRC is required by Indian tax authorities if the treaty benefit is claimed in the tax return. So that document is subjective to your ITR filing positions.
- You don't need to disclose unless you qualify as resident in India.
These are high level comments as per our understanding. However, we can share detailed advisory with you basis complete facts and situation.