Contents:
- Choosing the wrong place of incorporation
- Incorrect timing for opening a business and bank account
- Wrong estimate of expenses for starting a company
- Opening a business in the UAE without using the professional services
- Providing inaccurate information when opening a bank account
Top 5 mistakes of starting a business in the UAE
It is no exaggeration to say that the registration of a company in the UAE is becoming a global trend. In the first quarter of 2021 alone, 15,000 companies were registered in the UAE. And most of them were founded by foreigners. Someone opens production in the Emirates, someone wants to optimize taxation, and someone gets the opportunity to become part of the UAE IT ecosystem and becomes a member of an incubator or accelerator.
In recent years, the UAE has created a unique business environment that attracts entrepreneurs and investors from all over the world with zero taxation, the possibility of 100% capital repatriation, the possibility of 100% company ownership, a developed logistics network, rich labor and capital markets. But after work, you need to rest. Indeed, in addition to the business ecosystem, Dubai and other emirates provide unique opportunities for leisure activities for every taste and budget.
However, any business is a high-risk activity and mistakes when registering and doing business in another country can seriously harm your company. Let's take a look at the 5 main mistakes that entrepreneurs can make when doing business in the UAE.
1. Choosing the wrong place of incorporation
In the UAE, you have three basic options for opening a company:
- company in the free zone;
- local (mainland) company;
- offshore.
Each of these options has advantages and disadvantages. For example, a local company allows you to operate throughout the emirates, but some activities require that 51% of your company is owned by a UAE citizen. The company registered in the free zone is 100% owned by you, but there is no opportunity to participate in government tenders. In addition, there are more than 50 free zones on the territory of the UAE, each of which has its own specifics. If you choose the wrong place of registration of your company, in the future you will be limited in the development of your business.
2. Incorrect timing for opening a business and bank account
Starting a business in the UAE, from filing a company registration application to opening a corporate bank account, takes longer than in many Western countries. Often, companies that accompany the registration of a business in the UAE mislead customers about the time of registration. For example, you will be promised to open a business in 2-3 working days, but they will keep silent that opening a bank account in the UAE is a rather lengthy procedure. Our company Make Fortune promises you an honest and objective assessment of the time of registration of a company in the UAE.
3. Wrong estimate of expenses for starting a company
Registering a business in the UAE is a pretty expensive procedure, especially in the emirates of Dubai and Abu Dhabi. Before deciding to open a company in the UAE, you should carefully evaluate all expected investments in the business, such as renting an office, production premises, warehouses, salary and personnel costs, fees for obtaining various permits, renting apartments, utilities, etc. We always tell our clients everything we know; we share our experience in order to avoid any surprises after the registration of the company. We are interested in the development and prosperity of our clients' business!
4. Opening a business in the UAE without using the professional services
You will say, of course, in an article prepared by a company whose main activity is registration of a business in the UAE, there will be a recommendation to use their services. You're right, advertising is a must). But objectively, starting a business abroad requires the services of professionals. Your task is to find and choose a company that you can trust. Choosing Make Fortune Business Solutions to fully support your business in the UAE will be your best choice! Don't believe me? Book our consultation at www.makefortune.ae and we will convince you of this.
5. Providing inaccurate information when opening a bank account
Opening a bank account in the UAE is a very important step. Sometimes crucial. If you provided the bank with false or incorrect information to open an account in the UAE, expect at least a long delay. You will be under special control, so now every document you submit will be examined "under a microscope." Our advice is to provide banks in the UAE with only thoroughly verified and reliable information!
We sincerely hope that this information will help you in developing your business when registering a company in the UAE.
