Business startups have always met with lots of encouragement in Dubai. It’s no wonder that Dubai is attracting the eye of business investors from the time it started to show economic stability to the international markets.
The current market trends in Dubai offer many opportunities for foreign investors to tap into imports and export of commodities, as well as taking advantage of the growing tourist traffic of the city for an almost limitless potential clients and customers coming your way.
You need to get acquainted with the various facts related with a business startup in Dubai and evade the problems mostly encountered while launching a profitable enterprise in the UAE.
Here are the 5 things you DON’T need to do in business startup in Dubai
- DON’T register your company in a Free Zone without having a look at the available office sizes and the preconditions
More often than not, the published information for a Free Zone gives a wide range of packages with benefits. The actual availability of these keeps on changing. As a business startup one would normally look only for the cheapest available options.
It is quite possible that when in reality you go for the registration of the company, you may find that only certain office sizes are available and this might throw your budget into chaos.
It may be even too late to change your Free Zone then. Or it may so happen that certain offices might allow only 1 visa for the investor alone and not for the employees as such.
So in such situations, do not proceed further until all the aspects of the office preconditions are met.
- DON’T make firm plans only on the basis of published information
Before you even finalize your plans for the business startup, it is practical to substantiate the validity of the published information. Sometime certain rules change in Free Zones and also in the local DED or Department of Economic Development for business registrations.
Do not go ahead until you have thoroughly confirmed your assumptions through your business set up consultant or by actually contacting the relevant authority directly.
You may even discover that some papers may be required or that some nationalities need special permissions or that some requirements might get waived off if you request or negotiate further.
- DON’T blindly choose a license category without confirming if fits with your business model
In the UAE, it is not tough to work out a business model that will not need a modification. Most often major changes or at least some tweaking is required.
Make extensive possibilities and confirm whether your intended license category allows you to carry out all these activities that will be likely in the business model that you are setting up.
Never ever choose a very narrow license category.
- DON’T open a bank account without getting to know the bank charges
Banks levy various charges. For a business setup, these can amount to a significant sum for bank-dependent operations. Always confirm the requirements and charges early on. Do not choose a bank only based on their reputation.
- DON’T sign any sponsorship with local sponsors without a legal agreement
Your business set up may need a lot of initial support. A local sponsor might want to charge separately for some of the services.
Don’t go ahead with any sponsorship until both the sides have agreed on what to expect from each other and a written agreement is drawn up and attested in the local courts.
Do not rely only on any verbal form of understanding.