Five Common Business Setup Mistakes to Avoid

Undertaking a Dubai business setup can be a very riveting process. Not only can it be overwhelming, but also very challenging as a new business setup in Dubai entails many judicial procedures.

The UAE is a country that presents an inundation of possibilities, especially for entrepreneurs and businesspersons looking to carry out a Dubai company formation. The UAE has been an expat-haven for people from many neighbouring countries, as it offers a passel of benefits that include tax benefits, business-growth atmospheres, favourable commercial environments, etc.

Despite all the benefits offered, many a time, we come across solopreneurs and start-ups embroiled in business setup problems that could have been averted. Sometimes, these impediments halt their business setup completely. But most of these legal hindrances can be completely evaded, with the right legal advice in place.

Below is a list of some of the most common problems encountered while setting up your business in the UAE:

Lack of Eclecticism

Whenever we wish to learn more about something, we automatically think “Google”. The internet sure abounds with a lot of information to dispense to its users. For example, if you are looking to acquire a trade license in Dubai, you will instantly know where to go. However, the internet cannot furnish what experienced business setup consultants can — raw business acumen required for a business setup in Dubai.

The internet — along with providing you resources — could confuse you with different procedures and/or outdated information. Hence, it is always prudent to reach out to the best business setup consultants in Dubai to get a detailed and tailor-made solution for company formation.

Choosing your Business Structure and Activity

It is of paramount importance to choose the correct and apposite licensing location for your business. When choosing amongst Mainland, Free Zone and offshore, ensure that you give importance to the long-term objectives of your company. This is important because factors like your business structure, target audience, location access, etc. all play an integral part in the success of your business.

Not only does this apply to the choice of jurisdiction, but also to the type of company and the business activity you want to setup. Not every Dubai business setup can be achieved through a general trade license in Dubai. There are many more prerequisites that necessitate other clearances and documents to successfully start a company.

Document your Business Dealings

Business transactions, particularly with personal relations, play a huge part. Conducting business with your kin or a long-time friend can work to your advantage. However, misapprehensions often arise and lead to disputes.

To avoid the possibility of any disputes, it is best to record and document all business transactions that take place between you and your business partner. Record your business dealings in a simple legal agreement. This will avoid any bad blood that could possibly hurt your business.

Meticulosity is a virtue

Never get slipshod at any point of your business setup in Dubai. Once you make a decision of starting your own company, time counts as money. Everyone would want to have their business license issued posthaste, which is completely understandable, given the investment involved. However, it is important to tread with caution on thin ice.

Take time to perpend over each and every step of your company formation for the benefit of your long-term goals. With planning and precision, you eliminate any and all potholes and be better prepared for contingencies.

Avoid Shortcuts

Long gone are the days when setting up a business in Dubai was an arduous process. With every initiative the government is rolling out, we inch closer towards efficient business setup procedures. Procuring a license for your business — be it a trade license or freelance permit — has never been easier, for there are always professionals willing to help you out, and you need not resort to any shortcuts for your Dubai business setup.