Planning to start a business in the UAE? We have a short list for you to look at before your venture.
1. Cultural values: The relationship between business and religion can be minimal in many countries but in UAE it is not so. The Islamic values of the country have a vast impact on everything such as work life, legal systems and work relationships. As an entrepreneur, you will have to first understand these basic values or get somebody who can help you navigate, before you get into the working mode.
2. Cost of Living & Time: If you have time between starting your business in the UAE and time to market, it is imperative to look carefully at the budget between these time periods. This way you will not be in for a surprise, especially if you are trying to build software or app and you have a good chance of a competitor catching up on that niche. So you need to have enough money to support your lifestyle along with speeding up your time-to-market to capitalize.
3. Information: Though every licensing authority has a website and information is available for online company formation in UAE, it could be difficult to chart a clear path to organized information if you are entering without help.
4. Investment: More often we see that people are not able to set up a business because they did not budget properly in their plan. Between office spaces, finding the right talent to license fees, you need to set aside a minimum of Dhs 300000 depending on the type of company you set up. It will be of help if you get somebody to help you understand the different factors involved and the associated costs.
5. Talent: The UAE has great connectivity to all parts of the globe and the quality of living is good. Still getting the right kind of talent for work could be difficult if you don’t know where and how to look, especially if you have a very short span to collect your workforce.
6. Choosing individual or Company Partnership: Before you set up your company in the UAE you have to decide on the kind of partnership – individual or company. In case of individual partnership and the unfortunate event of the death of the local partner, under the Sharia law, the shares held by him/her will be passed to a member of his/her family and the terms of the agreement will change as decided by the new partner. In the case of a Limited Liability Company structure, there will be business continuity and protection by corporate agreements. So it’s wise to understand the host well before entering into a relationship.
7. Appropriate Exit clauses in Partnership: There are many successful businesses in the UAE and many have profited here but not all business relationships are rosy and rarely do they end amicably in case of disagreements. So it is important to take a magnifying glass to the exit clauses in the partnership and understand the liability.
Each business is different and the Company Formation Procedure in Dubai also vary accordingly. But we would be happy to help and make it simple. Contact us at jak@socprollect-mea.com with your queries.