Shuraa

Tag: setting up a business in Dubai

  • Challenges of Doing Business in the UAE

    Challenges of Doing Business in the UAE

    If you are preparing to tap into the opportunities and potentials of the UAE market, you also need to consider that there are several challenges of doing business in Dubai and uncertainties dealt by entrepreneurs. Company formation in Dubai or business setup in UAE is a welcoming platform for investor because of the revolutionary progresses and economic schemes. Nevertheless, just like any major commercial destination, there are certain hitches to be avoided and hindrances to overcome.

    If you are a driven and dedicated businessperson – who is enthusiastic about the scope this amazing country has to offer, then make sure you build up yourself for these common challenges that come through your way while doing business in UAE.

    The Challenges of Doing Business in UAE

    Here are 5 key challenges of doing business in the UAE that business owners likely to encounter

    UAE Company Ownership

    An onshore or LLC company formation in Dubai and around UAE compels on a partnership with a UAE national. Moreover, the norm also states that the investor will only be allowed to have 49% of the possession in the company, while 51% of stakes will be owned by the UAE national. While some businessmen agree on the criteria, it can be tedious for others to develop trust and reliability.

    Finding A UAE Business Partner

    Hence, the next challenge is finding the perfect and suitable local business partner in UAE. For most of the legal business categories having a UAE local business partner is a must! Thus, finding a local partner – who would own the major stake in the company as well as be give you the liberty to deal with business on your terms could be a daunting task.

    Probable Implication of VAT

    UAE is a tax free country, but will it always be? Business in UAE is done without any tax burdens, that has made UAE an ideal commercial destination but the introduction of VAT speculated in 2018 has already created qualms in the market.

    Manage Revenue

    Managing revenue is crucial, even though UAE can provide with enormous opportunities of widening your business, it can be equally risky. It was reported by the Association of Chartered Certified Accountants that 82% of startups fail as a result of poor cash flow management. While setting up a business in UAE there are various banks and financial institutes that may approach you offering a loan or maybe you could be eager to invest or spend more than your capacity. Cost of business setup and your initial capital requirements needs to be managed and then applied.

    Communication & Culture

    Business communication and the Islamic culture needs to be addressed before setting up a business in Dubai or any other Emirates. The level of business communication is different in every world, likewise UAE follows a formal approach and directness is limited. Also men and women are communicated at different levels. Emirati culture is the sole of modern UAE and Islam plays an important role in people’s daily life.

    A WORD OF CAUTION

    UAE market is hyper-connected, mobile and caters to a sophisticated supply and demand chain. The ever-growing rush among entrepreneurs’ state that irrespective of the challenges of doing business in UAE, the country offers a rewarding experience. Thus, it makes significant business sense to scale your business agenda beforehand – and the best way to do this is through guidance! Shuraa Business Setup in Dubai offer business setup services in UAE, through which you do not have to worry about these challenges and several others that come your way.

    Finding out the right local partner could be time consuming or relaying on an unknown business partner is difficult or even managing your finances could be unnerving. Also many times the business requirements that you come across can be misleading or incomplete.  – we at Shuraa recognize these issues and advice you on the right path! To know more just speak to our company representatives and you are sure to get sorted.

  • Know the Essentials Before Doing Business in Dubai

    Know the Essentials Before Doing Business in Dubai

    Dubai is a land of dreams and has attracted several businessmen over the years. The commercial hub, the diversified business model, and the extensive boost given by the government to foreign entrepreneurs make doing business in Dubai one of the most optimistic economic prospects in the world.

    Dubai offers favourable business conditions, buoyant client demand, immense business development options, competitive pricing strategies, unparalleled business outlook and so much more. With an objective to make the most out of these attributes, entrepreneurs come to this region with outstanding business ideas, however what they lack is the essential procedural approaches as well as they are unaware of the basic process of business setup in Dubai.

    Thus, before extravagating over your business idea it is very important to know how to set up a business in Dubai. The Middle East has always been the most popular location for targeting of new markets. Nevertheless, no matter how easy the market provides the business outlook or the government supports the dissemination of these business entities – starting a business in a foreign country with international competitors and new-fangled laws can be challenging.

    Doing Business in Dubai and the UAE

    Let us check out some of the significant pointers, of which foreign investors are usually oblivious of, and being negligible about these attributes could lead to a perilous business venture.

    Understanding the Market

    The nature of your business specifically describes the business market segmentation – there are two types of market that you need to cater in Dubai. First – the business market will define the competitors, business limits and restriction in the present market and the orientation and objectives of your business. Second – the consumer market and your target customers that specifies the business decisions, the structure of the business and more. Dubai is a commercial hub of United Arab Emirates, embracing moderation and global cultural trends – still it is an Islamic country and the commercial market also has an impact due to this, thus it is essential to know whether your business idea fits in the given zone.

    Research and Planning

    Understanding the market is a part of research, yet researching and planning is a wide subject and involves much more than just the market. A significant aspect of research comprises through knowledge about your business idea, perceptive about the market, the commercial laws of the country, business outlook and trends, etc. With the change in the currency and foreign values, adequate planning helps in estimating the capital and cost of the venture as well.

    Mainland or Freezone or an Offshore

    Company formation in Dubai, is done mainly under three jurisdictions Dubai mainland company formation, business setup in Dubai free zone or an offshore company formation. Edifying about every jurisdiction and making a decision accordingly is the most important thing that will the business in long-run. Every jurisdiction has its own advantages and is being defined by law and regulations denoted by the Dubai Economic Development (DED) and the Dubai Government.

    Licensing and Registration

    Licensing is an indispensable legal factor of setting up a business in Dubai. There are various licenses that the Dubai Government offers based on the business executed, the jurisdiction the company is setup and the company structure. Every license is permitted specific activities and is restricted by a set of regulations, thus it is vital to considerate which licenses serve your business.

    Local Partner or Local Service Agent

    In Dubai, as per the Companies Commercial Law – every business entity is compelled to have a business partner or a local service agent, this depends on business, the jurisdiction and the layout of the company.

    Renting/ Leasing commercial space

    It is mandatory for a foreign investor to have an office space or an office desk. Earlier the Dubai government has limitations on leasing and renting a property for a smaller period, but which time and advancement – there are areas where in foreign investors can rent an office space for over 25 years. Also free zones in Dubai, have their independent decrees through which renting and leasing take place.

    Budgeting and costing

    Calculating the cost of the business and planning accordingly is be a boon. Although the initial set-up costs can be lower, there several influences involved – such as getting permissions and certificates make be expensive, transactional costs associated with visas and permits, monthly bills and maintenance costs, human resources cost and other requirements according to your business setup can articulate the expense.

    Therefore, get ready with your checklist and distinguish if you have marked in all the attributes before considering to setup a business in Dubai. To know the legal structure, go through the basic guide on how to setup a business in Dubai. So whether it is a multinational enterprise or if you are thinking of SME sector in Dubai let Shuraa be your guiding light.

    With Shuraa Business Setup, you can concentrate on your business idea while we will take care of all the governmental procedures and formalities related to it, in the most cost-effective and easy way.