A business setup in Dubai is a bright and fascinating idea due to the investor friendly government policies, lenient tax platform, and rare access to an international market. In light of this, the UAE is home to the most expanded business formations that operate based on innovative and modern business models. This has in turn led to upsurge of foreign investors from different countries such as India who hope to tap into the vast UAE market as a link to other international markets. But, there are a few things worth noting before investing in a business setup in Dubai. They include;
Knowing the difference between Mainland, Offshore and Free zone Business Setups
Business setups in the UAE are categorized into 3 authorities; mainland, offshore and free zone. Mainland business setups grant permission to conduct business within local UAE markets and international markets as well without any binding restrictions. They are onshore business formations that are licensed by the Department of Economic Development. Free zone business setups allow 100% foreign ownership, charge zero taxes, but can only carry out business in the free zone regions. On the other hand, offshore business setups offer all benefits accorded under free zone formations but you are only entitled to the business formation license. You cannot apply for a visa or rent office premises.
Basic UAE business Law Knowledge
The UAE government is very strict in regards to business setup legalities, documentation, paperwork and agreements. Therefore, being a foreign investors it is prudent to complete all the business setup in Dubai paperwork as per the laid out guidelines to avoid controversies with the authorities. To ensure a smooth business setup process ensure that you are knowledgeable about the rules and regulations governing the formation of your preferred business setup in Dubai. You acquire the knowledge through research or speaking to an established business setup in Dubai agent.
Understand the Local Culture
Regional cultures allow marketers to develop greater engagements and relevance among their target audiences. Dubai may be stylish, modern, and visually appealing city but it has its particular cultural circumferences that serious investors must take into account when setting up and building their businesses in the UAE region. The more you acquaint with local cultures, the higher the chances of attracting more clients, achieving business success and substantial profits. You must respect and adapt to UAE cultural boundaries to have a success business setup.
Summary
Business setup in Dubai offers a myriad of benefits that are only enjoyed by investors who adhere to set rules and regulations and always remain compliant with the government authorities’ demands. Nonetheless, it is advisable to do market research and understand the different challenges your preferred business setup may encounter prior to registration.
