Moving an Indian Factory to UAE After US Tariffs
The US is one of the largest importers of several goods from India. Over the years, they have been importing textiles, jewellery, chemicals, electronic instruments, food items and more. There is a significant quantity of imports to the US from India. So, moving an Indian factory to the UAE after the US Tariff is under consideration by many Indian investors.
Now, with the revised tariff rates, the cost of exporting from India to the US is becoming more expensive for most exporters based in India. In the article, we identify the advantages of registering a company in the UAE and the impact of US Tariffs on the company’s operations.
Factors to Consider While Moving an Indian Factory to the UAE
By moving Indian Companies to the UAE, the investor can focus on expanding the market potential to the Middle East and also ship to the US and Europe from the ports of the UAE. However, multiple factors affect the decision of moving an Indian company to the UAE for business expansion.
The investor must consider the overall cost of the new setup in the UAE, the difference in tariff, paperwork and special approvals depending on the business activity, overall living cost in the UAE, and more.
Also, there are multiple ways in which an Indian Company can be set up in the UAE. They can either form a business as a branch of their parent company in the Mainland or the Free Zones of the UAE.

Otherwise, they can form a newly registered company in the Free Zones or the Mainland for conducting global operations. Depending on the business activity, there may be a requirement for having a warehouse to store the items and then re-export, manufacture or re-package the product.
Taking assistance from expert Business Consultants helps in making the right choice. Certain activities can only be taken from the mainland of Dubai to get the required approvals and the Made in UAE tag. Also, for moving an Indian Company to the UAE, there are certain criteria to be met.
At such instances, expert Business Consultants will help in moving the indian company to the UAE by facilitating the company setup and getting the paperwork right.
How will registering a company in the UAE reduce the tariff effect?
To move an Indian Company to the UAE, the investor must go through various steps. What the indian exporters can do is to start a company in Dubai or the UAE. They can import the goods to the UAE and re-export from the UAE.
However, while moving the Indian Company to the UAE, the investor must have a warehouse in the UAE and make significant changes to the product.
Also, they can apply for a permit from the Municipality of Dubai to get the ‘Made in UAE’ tag. Only then can they leverage the lower tarrif rates of the UAE while exporting it to the US from the UAE.
Depending on the product, there will be an inspection and approval process from the Municipality. The foreign company will have to take an industrial license in the UAE. So, now they will be able to export goods from the UAE to other global markets.
There are many benefits in moving the Indian Factory to the UAE and exporting from the UAE. Also, the company can easily launch their products in the UAE and sell them globally from UAE.
What is a tariff?
A tariff is a tax collected by the government on imports from other countries to the destination country. Depending on the bilateral trade relations and trade agreements in place, the percentage of tariffs varies across various countries. The tariff generally varies from 10% to 50%
Some countries have reciprocal tariff rates set, while some have them set to zero to promote cross-border trade and reduce the roadblocks to international market access
How the UAE’s business ecosystem is evolving
UAE has become one of the most sought-after business destinations in the Middle East. The growth of the UAE economy is phenomenal, with strong leadership and vision of the rulers. Also, the stable government, no geopolitical tensions, and safe environment make it a family-friendly choice.

Furthermore, for businesses, the UAE’s infrastructure is top-class and welcoming to investors from around the world. Global investors from countries such as India and China can move their factories to the UAE, set up a new company here and operate their business smoothly.
There is minimal paperwork and compliance, such as the Corporate Tax and Value Added Tax guidelines that investors must follow. Experts at AURION Business Consultants will guide you the right way to move your Indian Company Factory to the UAE and comply with the government policies and regulations.
So, moving an Indian Company Factory to the UAE can have a significant impact on the overall profitability of the company. The business owner must make an informed decision while choosing the options available. The UAE has several opportunities for Indian business owners to move their factories and start a new business here in the UAE.
The absence of personal income tax, low corporate tax rate (9%) and low VAT (5%) slab make UAE a competitive market and investor-friendly. The global tensions, trade wars, inflation, etc., can be to an extent, hedged by global investors by starting a company in a low-tax region such as the UAE.
Connect with our expert team of Business Consultants to know more about the process of moving your Indian Factory to the UAE.