Business Setup in UAE : Three Do’s and Don’ts that you need to remember


Business owners and entrepreneurs today are looking out for new locations where they can take their business for expansion. While Middle East has always been known for its oil industry, Dubai has managed to break the conventional image that has been set over the years and has turned the city into business metropolis. Over the last decade, more and more businesses have moved to Dubai that allows better control over Middle East and Asian operations. If you are planning to setup your business in the UAE you have to be sure about what you should do and what you should avoid.

Here are some do’s and don’ts that you have to keep in mind while you focus on business setup in UAE.

Three Do’s that you need to remember while setting up business in UAE

  • Find a local sponsor

When it comes to business registration and operations the law in the UAE is slightly different and therefore you need to get acquainted with it. There are plenty of business opportunities that you can find in Dubai, but for that you will need to find a local sponsor that can be a partner in your business. As per the UAE laws you will need to get a UAE national as a 51% partner that can allow you to locally register your business as LLC business. This will also provide you with the freedom to choose your business location anywhere in the city.

  • Select the right location

Not all locations in UAE are good for business and therefore you have to search for the right location that can optimize your business in the right way. Look out for a location that offers better convenience and reduces the overall cost that can help you save more money. It is recommended that your business location must be close to majority of your clients and customers. You can take some help of business consultants who can guide you with better business locations.

  • Get the right business visa

When you are setting up your business in UAE you also need to pay attention to your paperwork and documentation and visa that can allow you to operate your business legally. Getting your business visa is not tough, but you need to go through lot of paper work at least for the first time to ensure that you can run your business smoothly.

Three Don’ts that you need to remember while setting up business in UAE

  • Don’t rely on verbal understanding

You might find a really good local sponsor that would support you in every possible way to establish your business, but it is recommended that you only proceed further when there is a legal written agreement between you and the local sponsor. A local sponsor may charge you more separately for extra services that were provided and you don’t want your business budget to get messed up.

  • Don’t choose business license category blindly

When you have the opportunity to choose business license category you need to be very careful and specific. Businesses in UAE fall into three categories; professional, commercial and industrial. Hence, you must be clear of all your business activities. If you are choosing business license category that is too narrow for your business you will not be able to handle some of your business operations in the right way.

  • Avoid handling business registration on your own

If you are planning to set your business in UAE it is better that you look out for business consultant and other local firms that can help you out with business setup and registration. When you are handling the business registration process on your own you will need to keep track of lot of paper work and documentation that you might not be sure of. With business consultants and advisory firms you can handle the entire business registration process with ease as they guide you and provide you with multiple options to setup your business in UAE.

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