Transform your business dream into reality with Charles & Darwish Associates. Optimize your Dubai business setup effortlessly in the Free Zone, Mainland, and Offshore ensuring flexibility and growth opportunities. Leverage Dubai's growth with our tailored business setup solutions.
Get Free Consultation
There are various dos and don’ts for every activity that we plan to do. These highlighted points provide you with clear insights into all the necessary processes that must be done, the processes that must be avoided, and those that require high precautions. Similarly, while setting up or forming a business in Dubai, the entities must keep in mind various dos and don’ts to avoid future mishaps that can affect the growth of the business.
Dubai provides all the required landscape, infrastructure, resources, legal support, amenities, etc. for the business to have a good head start. Amidst this, there are various points that must be noted by entrepreneurs to grow on the right path. These are the guidelines that must be followed by all entrepreneurs. Even the smallest things can have a huge impact on your business formation in Dubai. Below is a list of some dos and don’ts that must be remembered during business formation in Dubai.
Assume you are about to open a parlour. Analysing Dubai’s commercial landscape reveals an active beauty parlour market and wellness industry. This indicates a promising market opportunity. Exactly! But remember the “Dos” before you dive in:
Conducting thorough research before starting a business in Dubai is very vital, especially for entrepreneurs who are new in Dubai. Conducting research about locations available in Dubai, research on the types of licences available, research about the opportunities and possibilities available, research about the competitors, about different types of company formation procedures, etc. would be the best course of action whereby the entrepreneurs will get a clear picture of the landscape in which they plan to start the business.
Randomly selecting a business license for your business is a blunder mistake that you could do to destroy your business. Having appropriate knowledge about the various licences provided by the authority is important. The business must select the licenses based on its nature of operations, scope, type, etc. Each of the licences may have different formalities, such as issuing agencies, fee structures, etc. So, the licenses must be selected by keeping these factors in mind.
Having an investor’s visa in Dubai will enable the investor or entrepreneur to stay in the UAE. The process of obtaining the investor’s visa is also simple and might not be a daunting task. The investor must ensure that it maintains all the required legal documents that are up-to-date so that it can facilitate a smooth process of issuing the visa.
It is very crucial to have a reliable and trustworthy sponsor or a local agent for your business on the Dubai mainland. The business must always perform due diligence on the sponsor to ensure that he or she is reliable and trustworthy. Ensuring this will smooth the path of your business in Dubai
For newcomers in the Dubai business landscape, there might be vast potential available. But in order to prosper and stay afloat in the initial stages, it might be very cumbersome. It is always best to maintain a partnership with well-known and reputed giants of the industry, which can give your business a smooth head-start by reducing the intensity of the competition prevailing in the market and also by creating a good market share in a business landscape like Dubai.
Every business entity must be aware of most of the regulations prevailing on the land on which they plan to set up their business. The entrepreneurs who plan to form businesses in Dubai must have an idea of the different laws that are related to conducting business in Dubai. Dubai is always known for its stringent rules and regulations, and failing to comply with them can cost the business a lot of money. Businesses must be aware of the tax laws, customs laws, labour laws, and other vital regulations that must be mandatorily followed.
The formalities for getting a visa in Dubai are very comfortable. Even the authorities provide all the required support to get the visa issued easily. The visas are issued based on the type of business that is operating. The entities must be sure that they have insights into the type of business they are planning to set up, based on which they can approach the entities to get the visa issued.
Imagine you’re partnering with a local contractor to renovate your beauty parlour space in Dubai. While discussing the project timeline and costs, you agreed verbally on a fixed price for the renovation. But halfway through the project, the contractor says there were unexpected problems and asks for more money.
Since you don’t have a written contract outlining the agreed-upon scope of work and price, you have limited legal recourse. A written contract with clear terms protects both you and the contractor, avoiding misunderstandings and potential financial strain later.
So, make sure you don’t make the below mistakes:
As most of the investors are not from Dubai, they might have a clear knowledge of the registration process and the laws of the land. Entrepreneurs or investors might find the registration process complicated, and it might turn out to be a long process. So, it is always the best course of action to get the registration process sorted out by professional business setup service providers like CDA, who can get your registration done easily.
The entrepreneurs planning to form a business in Dubai must be confident about the amount of funds that may be required to get the business afloat. They must be aware of all the possible areas that would require a huge disposal of funds. Hence, this can be done accurately only when the entrepreneurs have a proper budget. Starting a business without a properly drafted budget would be similar to looking for a needle in a haystack.
Word-of-mouth contracts or agreements are not so reliable, and they don’t have legal validity. So, it’s always the best course of action to enter into contracts and agreements via written documents in relation to any matters of the business, like approaching local sponsors, etc. These legal documents can be used as strong evidence of the contract that you have entered into on behalf of your business.
Before opening a bank account for your business in Dubai, you must be aware of the type and volume of transactions that you might be dealing with. Having a clear understanding of these will help you select the appropriate bank account. The charges for maintaining the bank may vary based on the transactions and the bank you have approached.
You might be a newcomer to the business landscape of Dubai; hence, everything here in Dubai might seem to be new and complicated. Getting the help of professionals to sort out your business formation procedures will ease your efforts. Experts like CDA have deep insights into the competitive market in Dubai; hence, the professionals can help you set up your business strategically.
Maintaining a proper channel of contacts and networks is very important for businesses in Dubai. New businesses must always grab the opportunity to socialise with other business entities and partners. This can help new businesses get deeper insights into the current market situation in Dubai. The businesses can also share their visions and thoughts about emerging innovations and markets.
The new businesses must not conduct any research based on any random information that might come across as unreliable. Businesses must always try to get help from professionals like CDA, who can conduct research on their behalf based on the accurate and reliable information available.
If you are planning to start a business in Dubai, then the above-stated are some of the general dos and don’ts that you must be aware of while setting up a business in Dubai. Being aware of these minute guidelines would help the new business avoid any hindrances in the future. These highlights can provide new businesses with directions and the best head-start, ensuring strategic growth in the long term for the business. Following these guidelines, any foreign business can become part of the growing economy of the UAE, enabling it to acquire competitive advantages in the future and ensuring prosperity. Click here to know more about our PRO services
CDA’s team of professionals is well known for providing custom-tailored business setup services for its clients. Investors from across the globe who are planning to set up a business in Dubai can confidently approach us, as we can provide you with varied business set-up services like selecting the location for the business, ensuring the compliance framework, getting the license issued from the authorities, conducting research before setting up the business, and many more. Our team of professionals provides you with premium services in a cost-friendly manner, which gives your business a good head start.
To get your new business on the path of growth, click here to learn more.
