6 Things you need to know before starting a business in Dubai
Starting a business in Dubai is an approachable concept and may seem extremely enticing because of higher economic returns and tax exemptions. Dubai is the commercial capital of the United Arab Emirates. The city has the most diversified business startups with enormous commercial prospects and innovative business modules. The investor-friendly government also supports and motivates businessmen from around the world to set up a business in Dubai.
However, there are a lot of complexities that need to be taken into consideration. Irrespective of the advantages, it could be difficult at times for a foreign entity to understand the complete functioning and process of setting up a business in Dubai.
Start a business in Dubai? Then it is important for you to know a few things before you venture too deep into the UAE market.
1. Know the difference between Mainland, Free zone and Offshore
Business setup in Dubai is divided into three main jurisdictions: 1) Mainland, 2) Free zone, 3) Offshore. These jurisdictions are segregated depending on business requirements, commercial activity of the company, company’s ownership status, taxation and feasibility.
2. Know the business setup costs
Initially is required to start a business in Dubai apart from the company’s capital investment. Business setup in Dubai may involve a few operational costs and governmental fees, apart from the investment solely for the business. The business license, government certifications, trade name registration, visa and immigration are some of the major business setup costs.
3. Know the legalities and paperwork
The UAE market is very particular in terms of legalities, agreements, paperwork and documentation. Any delay in such issues may also lead to a heavy fine on the company. Thus knowing your legalities is a good thing to do.
4. Know your incorporation process and licensing stages
When setting up a company in Dubai most of the research is done on market investigation and practicability of business. Knowing the new place, currency, trends and so on takes a lot of limelight wherein the incorporation process and the licensing is completely neglected. Incorporating a trade license is a huge process and companies end up acquiring trade licenses that do not fulfill their needs or allow to carry out specific activities, thus know the incorporation process or ask an expert.
5. Know that time is precious
Contemplate the probabilities from the beginning and do not waste time once the business setup process has started. Time is crucial and extending or delaying the process will only add to the costs of business setup. Also, business setup related documents have a renewal date and the entire process of starting a business in Dubai is linked to one another.
6. Know that you are under cultural borders
The city has a modern outlook, but there are some cultural borders that need to be considered while starting a business in Dubai. Like any other country, business entities must recognize and respect the cultural boundaries.
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