Common Challenges in Starting A Business In UAE

Common Challenges in Starting A Business In UAE

AN OVERVIEW The United Arab Emirates or UAE is one of the best destinations for company formation across the world.

This country is popular because of its business-friendly environment, straightforward legal framework, favorable tax structure, and more.

Certainly, there are many advantages of setting a business in the UAE. However, there are some set of problems that you need to face while company formation in UAE Free zones.

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Let’s dive into some of the most common challenges that you may face while company formation in UAE Free zones: ▸ UAE Company Ownership ▸ Finding a Local Sponsor ▸ Implications of VAT ▸ Managing Revenue

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UAE Company Ownership If an individual want to set up a company in UAE, he requires a local sponsor.

This implies that an individual has only 51 percent ownership of its company.

Well, many business owners accept this criterion but it’s not easy to trust and rely on others for partnership.

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Finding a Local Sponsor Well, finding a trustworthy sponsor is one of the biggest challenges while company formation in UAE Free zones.

But, in order to set up your business in UAE, you need to find a local sponsor.

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Implications of VAT Registering VAT and going further is another major challenge to set up your business in UAE. However, hiring a professional business consulting company can be the best move for your business.

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Managing Revenue Clearly, the United Arab Emirates provides many opportunities to run your business successfully. According to a report by the association of charted certified accountants, 82 percent of the businesses fail due to poor cash flow management.

If you want to grow your business in the United Arab Emirates or UAE, then you should focus on managing the cash flow of your organization.

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THANKS! Any questions?

Contact Us +971-55 (554) 0853 info@themilestoneuae.com

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