It is not surprising that so many foreign companies decide to set up their businesses in Dubai, given the city's vibrant business environment and numerous commercial prospects. But along with the many advantages come a number of concerns that might cause costly errors for international investors. While hazards cannot be completely eliminated, they can be reduced if you are aware of them.
In this article, we will talk about 5 common mistakes to avoid while setting up your business in Dubai.
1. Registering Your Business in the Wrong Jurisdiction
Knowing your skill is just as crucial as knowing the appropriate jurisdiction for your business. You can decide whether it will be an offshore, mainland, or free zone corporation. Each has its own rules and regulations, just as each has its own advantages. Knowing which type is best for your business enables you to do your tasks quickly and easily.
2. Making the Incorrect Business Licence Application
Similar to how some investors might pick the incorrect location, some people might pick the incorrect licencing. Before starting a business in dubai, it is essential to ascertain the legal framework and commercial operations. Numerous permitted activities from various fields and sectors are available.
Nevertheless, you have the choice of locating the data you require regarding each licence. In order to make the analysis and selection process more effective, you can also choose a business setup partner. You can ask for a change if you select the incorrect business licence or the incorrect activity. However, depending on the jurisdiction, changing your activity will cost you differently.
3. Not Getting the Necessary Paperwork Ready to Register Your Business
This mistake is one of the most frequent ones that investors commit. Although it is a straightforward process, opening a business in Dubai takes time. When opening a bank account is taken into consideration, the total procedure takes about 30 business days. If you do not prepare the necessary documents, it can take even longer.
Therefore, before beginning the process, you must double-check the list of criteria. Once everything is prepared, you can begin registering your business without wasting any time. Additionally, if you wish to skip any steps and save time, you can take help from experienced business setup consultants in the UAE.
4. Relying Solely on the Stuff Available on the Internet
The internet is rife with information on various business types, the most accessible and affordable free zones, the quickest method to get started, and so forth. However, the rules and laws governing licences are often changing, and some of the requirements don't even apply to you. You cannot rely completely on information found online. Because it's possible that you're looking through an old post and taking actions based on it.
Moreover, it's frequently preferable to seek professional advice from a qualified business set up expert who will lead you in the appropriate direction rather than spending time researching large volumes of publicly accessible data, which can also be frightening.
5. Having Second Thoughts about Working with a Professional
You might be hesitant to pay a business consultant expert for their services. You might believe that all it would take is some investigation and your own initiative. But this is not the case. If you opt to contact someone who is familiar with all the ins and outs of business in the UAE, you could prevent a lot of potential problems. Consider it an investment that will ultimately be profitable.
We at Probity Corporate Services provider (PCS) acknowledge that opening a business in Dubai can be challenging. On the other hand, navigating international protocols, regulations, and policies shouldn't be something you have to handle alone. As your local affiliate, we're here to help you lighten your load by offering professional legal business set-up services.
Call us to schedule a meeting to discuss your Dubai business set-up requirements!