Setting up a company in the United Arab Emirates (UAE) can be a complex process, and there are several common mistakes that entrepreneurs should be aware of:
1- Choosing the wrong business structure and Business activity
It’s important to choose the right business structure for your company, as different structures have different legal, tax and regulatory requirements. There are 3 types of structures in the United Arab Emirates:
- Offshore – IBC companies
- Free Zone companies
- Mainland companies
2- Under-estimating the cost of setting up a company:
The cost of setting up a company in the UAE can be high, and it’s important to have a clear understanding of the costs involved. Please contact our business setup advisor to get an estimation of the company registration, Residence visa, account opening and relocation in the UAE.
3- Neglecting to secure the necessary licenses and permits:
Different types of businesses require different licenses and permits, and it’s important to obtain the correct ones to operate legally in the UAE.
Your company needs to have the correct license when operating. Getting this wrong could lead to fines of up to AED 120,000. Not only can the company face fines, but the General Manager can also be personally liable and penalized as well. To protect your shareholders, company, and General Manager, ensure your company setup is correct for the type of trading and operations it will be conducting.
4- Failing to plan for immigration and residency requirements:
Non-UAE citizens who wish to start a company in the UAE must secure a residency visa and plan for the immigration requirements.
5- Underestimating the importance of cultural differences:
The UAE is a culturally diverse country, and it’s important to understand and respect local customs and cultural norms in order to succeed in business.
6- Neglecting to protect intellectual property:
Intellectual property is an asset for many companies, and it’s important to protect it through trademark registration, patents, and copyrights.
7- Failing to have a clear understanding of tax requirements:
The UAE has a complex tax system, and it’s important to have a clear understanding of the tax requirements for your business.
8- Not having a clear understanding of labour laws:
The UAE has strict labour laws, and it’s important to be aware of the rights and obligations of both employers and employees.
9- Neglecting to plan for the future:
It’s important to have a clear plan for the future of your company, including plans for growth, expansion, and succession.
10- Not seeking professional advice:
Starting a company in the UAE can be complex, and it’s important to seek the advice of professional advisors. Free Zone Market team is your best partner to success your business setup in UAE.
Please do not hesitate to contact us at info@FreeZoneMarket.ae or call us at +971 4 876 9890
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