CEPA Is Critical for Indians to Start Business in UAE

The signing of the Comprehensive Economic Partnership Agreement (CEPA) on 1^st May 2022 has been a watershed moment for Indian investors aiming for lucrative opportunities through the process of business setup in Dubai. The CEPA signed between India and the UAE offers benefits like greater access for UAE exports entering the Indian market through the reduction or removal of tariffs on more than 80 per cent of products. Apart from that, the CEPA provides Indian investors with more confidence to set up a business in Dubai.

If you are an investor trying to take advantage of the CEPA benefits, business setup consultants in Dubai can help you with the company formation procedures. Here is a look at the key benefits of the CEPA:

What are the advantages of the CEPA?

As a result of the agreement UAE-India CEPA businesses can now take advantage of many new benefits, including:

1. Wider access for UAE exports entering India through the reduction or removal of tariffs
2. An open and non-discriminatory environment for cross-border trade with India.
3. Improved market access for UAE service providers spanning 11 sectors and over 100 sub-sectors.
4. The scrapping of unnecessary technical barriers (TBT) for UAE and Indian exporters.
5. The use of international standards as a basis for technical regulations.
6. Enhanced access for UAE businesses to Indian government procurement opportunities.
7. Support for UAE companies through a 10 per cent price preference in UAE government procurement tenders.
8. Assurance that UAE products will not be subject to India’s anti-dumping investigations as such products is merely transshipped.
9. A Joint Committee to assess, revise and propose amendments to the CEPA, including improving market access.

Benefits for Indian Investors Starting a Business in Dubai

By setting up a business in Dubai, Indians can enjoy the following benefits:

100% Company Ownership for Foreigners

Indian investors need to bother about the control of ownership in their company incorporated in Dubai. You can now set up a Limited Liability Company (LLC) in Dubai mainland with 100% ownership without partnering with a UAE national. If you are not interested in the mainland, you can open a company in the UAE free zones, where you can enjoy 100% ownership. Business setup consultants in Dubai can help you open a company in either mainland or the 45-plus free zones without any hassle.

Good tax rates

The tax regime in the UAE is very low compared to that in India. The UAE levies a Value Added Tax (VAT) at a meagre rate of 5%. The country 2023 introduced the UAE corporate tax. However, the UAE corporate tax is one of the lowest in the region. The UAE corporate tax will be imposed at a rate of 9% for taxable income above AED 375,000 and 0% for taxable income up to AED 375,000. The 9% rate is one of the lowest in the Middle East when compared with other countries in the region.  Business setup advisers in Dubai can advise you further on the tax regime in the country.

Long-Term Residency Options

Making Dubai your second home is no longer an uphill task. The UAE recently introduced two visas that offer long-term residency for foreigners meeting the eligibility criteria. The UAE Golden Visa offers you a residency of 10 years while the UAE Green Visa offers you a residency of five years. The two visas do not require a sponsor and can be renewed for another 10 or 5 years respectively. Holders of the UAE Golden and Green Visa are allowed to sponsor their families including their parents for 10 years. They can also sponsor an unlimited number of domestic workers.

No longer an alien in the UAE

The UAE is buzzing with the presence of Indians from almost all the states in the country. You won’t feel like an alien in Dubai or any other emirates of the UAE. There are plenty of schools that offer Indian education so the investors need not worry about educating their children in the UAE. Consult with business setup consultants in Dubai for more information.

How can Jitendra Business Consultants Help You?

The environment of company registration in Dubai is ideal for Indian investors, especially after the signing of the CEPA. The assistance of business setup consultants in Dubai will help Indian investors make the right licensing decisions. For instance, choosing the right options for business setup in Dubai such as free zone, offshore and mainland requires a high degree of meticulousness and market knowledge. This is where company formation specialists such as Jitendra Business Consultants (Jitendra Business Consultant) come in handy for investors. Jitendra Business Consultant’s team will help the entrepreneurs with requirements such as visa processing, document clearance, labour and immigration approvals, bank account opening etc.