The UAE is the world’s leading business center. Recently, India and the UAE signed an FTA, which has made the front pages of all significant tabloids and digital newspapers.
The bilateral economic agreement with India began in May 2022, allowing duty-free goods to enter the UAE.
The comprehensive economic partnership agreement signed by India and the UAE aims to increase bilateral trade from $60 billion to $100 billion over the next five years.
Both countries will benefit from this new FTA. It will help expand the export and import sectors by utilizing their strengths, benefiting the economy.
Trade Advantages of Business Setup in UAE after CEPA Signature
The comprehensive economic partnership agreement provides enormous trade benefits such as,
- The UAE-India partnership will generate numerous job opportunities and impact India long-term.
- 90% of Indian exports are now duty-free in the UAE.
- 80% of UAE goods will be tax-free in New Delhi.
- New Delhi will accept annual gold imports of up to 200 tonnes, or one-fourth of total purchases from all nations or the UAE, at a concessional tariff.
- This agreement will generate over 500,000 jobs in gems, jewelry, textiles, pharma, medical devices, sports, and furniture.
- Duty-free access to UAE markets for Indian gold exporters.
Benefits of Setting up a Business in UAE after FTA
The Free Trade Agreement (FTA) between the UAE and India has brought significant benefits for businesses setting up a company in either country. This blog will explore some benefits of setting up a company in the UAE after the FTA between UAE and India.
- Reduced Trade Barriers
The FTA between UAE and India has significantly reduced trade barriers between the two countries, making it easier for businesses to conduct trade. It has resulted in lower tariffs and increased market access for businesses in both countries. Companies that set up after the FTA can use these reduced trade barriers to expand their business operations and increase their competitiveness.
- Access to a Large Market
The UAE and India have extensive and diverse markets with significant demand for goods and services. Companies that set up after the FTA can access these markets and take advantage of the increased opportunities for trade and investment. It can lead to increased revenue and profitability for businesses.
- Ease of Doing Business
UAE and India have made significant efforts to improve their business environments and make it easier for companies to set up and operate.
By business setup in UAE after the FTA, the company can take advantage of the ease of doing business in both countries. It can include streamlined business registration processes, simplified tax procedures, and reduced bureaucracy.
- Tax Benefits
The FTA between UAE and India also provides tax benefits for businesses. It includes reduced or eliminated tariffs, customs duties, and other taxes, making conducting business between the two countries easier and more affordable.
As a result, it can lead to significant cost savings for businesses and improve their competitiveness.
- Improved Business Relations
The FTA between UAE and India has helped strengthen the two countries economic ties. By setting up a company after the FTA, businesses can benefit from improved business relations and increased cooperation between UAE and India. In addition, it can increase investment opportunities, joint ventures, and other business partnerships.
Conclusion
The FTA between UAE and India has brought significant benefits for businesses looking to set up a company in either country. Companies can expand their business operations and increase profitability by taking advantage of reduced trade barriers, access to large markets, ease of doing business, tax benefits, and improved business relations.
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