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TonThe United Arab Emirates (UAE) has been a favored business destination for Indians for decades. The recent changes have given Indian companies even more reason to set up a Global Competence Center (GCC) in the UAE and cater to their international business needs. Indian businesses should be aware of these developments in order to benefit from the UAE business ecosystem.
Foreign investors have previously faced restrictions on ownership in various industries. However, the UAE government has introduced major reforms to foreign direct investment rules, improving international competitiveness.A key reform is UAE Federal Decree issued by Law No. (26) of 2020, allowing foreign investors to own 100% of the business in certain industries outside the free zone. Foreign companies can now set up operations in the UAE without a local partner, contributing to economic growth and diversification.
management partner
Indian law firm
The Golden Visa Program enables eligible individuals and their families to live permanently in the UAE, making it easier to do business in the UAE. Previously, residence permits were often tied to employment, making it difficult for business owners to retain talent and provide stability. The Golden Visa is a simple program with few restrictions.
Free zones have been the backbone of business growth in the UAE, offering businesses considerable advantages such as 100% foreign ownership, tax exemptions and streamlined processes. Each free zone focuses on a specific industry, such as technology, finance, media and logistics, enabling businesses to benefit from a supportive ecosystem tailored to their industry. These areas offer state-of-the-art infrastructure, access to global markets, and proximity to major transportation hubs, facilitating seamless operations and international trade.
The UAE simplifies business setup procedures, reduces bureaucracy and increases investor confidence. The establishment of online portals such as Abu Dhabi Business Center and Dubai Economy allow entrepreneurs to complete formalities and obtain licenses efficiently. The introduction of electronic platforms and digital services has simplified administrative tasks and made it easier for businesses to operate.
management partner
Paoletti Law Group is based in the UAE and Italy.
The UAE actively encourages innovation and entrepreneurship. Initiatives such as the Dubai Future Accelerator and the Dubai Startup Hub support start-ups, attract talent and foster collaboration between entrepreneurs, investors and government entities. The government’s commitment to innovation is reflected in the creation of dedicated innovation zones, such as Dubai Internet City and Abu Dhabi Global Market. These provide an ecosystem conducive to technological advancement and business development.
Last year, the UAE and India signed a comprehensive economic partnership agreement, providing more opportunities for Indian companies to expand into the UAE market. The trade between the two countries has increased by 27.5%, and the target is to reach 115 billion US dollars in five years.
Tariffs have been reduced on a wide range of goods. The service sector has been liberalized in areas such as information technology, finance, healthcare, tourism and education. Strengthen two-way investment protection, creating a stable and safe environment for cross-border investment. Strengthen the protection of intellectual property rights, carry out extensive economic cooperation, and promote joint ventures and cooperation.
Businesses can be set up through mainland companies, free zones and offshore entities, each with its own unique advantages. Licenses and approvals are available from government agencies for a wide range of activities including trading, manufacturing and provision of professional and other services. Understanding the legal structure, knowing the market, complying with regulations and embracing the local culture will help build a successful and prosperous business.
India and the UAE are geographically close and share deep cultural and historical ties, which makes good business sense for companies from both countries to collaborate. The straightforward and credible UAE legal structure enables Indian companies to advance globally; UAE companies can enter the Indian market and benefit from a thriving economy with a strong manufacturing and fintech ecosystem.
Gautam Khurana is Indian law firm Thomas Paoletti is the Managing Partner of the Paoletti Law Group based in the UAE and Italy.
Indian law firmD-19 (GF) & D-31, South
extension – 1
New Delhi – 110 049
India
Mumbai | Bangalore
Contact information:
Tel: +91 11 2462 2216 / +91 11246 2218
Email: g.khurana@indialawoffices.com
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