How to overcome the challenges of starting a business in the UAE

Business

How to overcome the challenges of starting a business in the UAE

UAE is welcoming thousands of entrepreneurs every year to invest and establish their business. From individuals to mid-size and large enterprises, it is one of the most favourable destinations to set up their business because of the potential benefits and abundant opportunities it offers. Despite having benefits such as tax exemptions, business-friendly environment, strong economic stability, and more, setting up business in UAE has few challenges which often faced by entrepreneurs. Check out a few of the common business setup problem in UAE encountered by business owners and how to overcome those challenges.

Business Ownership

According to the UAE government, a business individual or an LLC company must include a UAE citizen as a business partner with 51% ownership. Otherwise, the business owners shall at least tie-up with UAE local companies which act as an agent. Therefore, the entrepreneurs need to tie-up with honest UAE local citizens or businesses for not bearing any complications or disputes in the future.

Finding Local Partners

Finding trustworthy local partners is challenging for any non-UAE business owner. Though they hold the major share in your business, they shall give you the privilege to deal with your business solely.

Value Added Tax

As per UAE recent regulations, companies that are into trading goods and services except for healthcare, education, and basic food items are required to pay 5% value-added tax. This has been implemented since January 2018 throughout the Gulf Cooperation Council. The VAT registration and further process without the help of expert advice from a consultant for business setup are challenging for any individual.

Effective Revenue Management

Managing revenue in the right way is of utmost importance for any business. UAE offers a great number of opportunities for any business to expand. However, grabbing the right opportunity and investing in it is imperative to be successful without losing your hardened money. Therefore, management of your capital investments and revenue is critical and need guidance before applying.

Dos and donts for Business in Dubai

Before setting up business in UAE, you need to consider various aspects to avoid the problems encountered while launching the business. Here are a few do's and don'ts you must take into account to overcome the business setup problem in UAE.

Do's

Choose a local sponsor who can help you in sorting out any problems and develop a good harmony with the sponsor to avoid business complexities.
If you would like to have 100% business ownership, you can establish your business in one of the free zones.
Find a location that best suits your business type and help you optimize sustainability, convenience, and expenses.
Check your visa eligibility and requirements and apply for visas of your employees and dependants if your sponsor gives you the authority.
Hire the best consultant for business setup who can help you overcome the business challenges.

Don'ts

Do not register your organization in any free zone without checking available office sizes and conditions.
Do not make any business plans based on the published information without verifying the validity of the information.
Do not choose a license category without confirming that it suits your business model.
Do not open a corporate bank account without knowing the bank charges.
Do not partner with a local sponsor without a written legal agreement.

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Hire the best consultant for business setup to overcome all the hurdles associated with setting up business in UAE. The consultant experts like The Executive Lounge Business Center will provide you with the right advice and help you achieve the optimal results alleviating the business setup problem in UAE.

Finding Local Partners

Work with Arabic Translation Experts

Cultural and language barriers will be one of the issues you will face as a non-UAE business owner. Under the Arabic League, about 22 countries have made Arabic their official language. However, the Arabic language has various colloquial dialects, which depending on the region, vary from one another.

Since UAE is a hot spot for international trade, especially countries part of the Arabic League. Having experts in professional Arabic translation will not onlyguarantee official documents to be acceptedby government and private entities. But it will also help you establish partnerships in the UAE and the Middle East.

Value Added Tax

As per UAE recent regulations, companies that are into trading goods and services except for healthcare, education, and basic food items are required to pay 5% value-added tax. This has been implemented since January 2018 throughout the Gulf Cooperation Council. The VAT registration and further process without the help of expert advice from aConsultant For Business Setupare challenging for any individual.