UAE is well known for having many multinational companies, business-friendly environment, favorable tax structure, and a straightforward legal framework. Every country has its own procedures and set of problems to face as challenges investing for any business. Find about the most common challenges faced by an entrepreneur while Setting Up a Business in the UAE. For any sort of Business Registration in Dubai, contact the Socprollect Business consultants to make your business ventures successful at ease.
Finding a Local Sponsor
To find a perfect trustworthy sponsor dealing with the legal business is another challenge for an investor. Thus finding one in Dubai, owns the major stake of the company and gives you the liberty to deal with the business of your terms.
UAE Company Ownership
If you are about to start an onshore or LLC in UAE, there should be a local sponsor. Hereby, compelling one to have a UAE national as a partner with 51% of the ownership. It can be obviously tedious for some people to develop trust and reliability, therefore a few goes with this and others deny.
Implications of VAT
From January 2018, the Dubai government introduced 5% value-added tax, imposed throughout the Gulf Cooperation Council (GCC). This is applicable to all goods and services except basic food, education, healthcare items. Registering and going through the process is also one of the challenging action for an investor.
Project Funding
If you are about to begin your venture, it might be difficult to obtain funds from banks. For the requirement of any business loans, there is a provision of at least 3 years of audited balances with positive figures and growth indicators.
Cultural Tenets
To set up a business in Dubai, Islamic culture needs to be addressed and customs should be observed. While doing business, you should respect the effects of the Islamic religion on business interactions.