Common Mistakes That You Should Avoid While Setting Up Your Company in UAE

An Overview

United Arab Emirates or UAE is one of the most investorfriendly destinations around the world. In fact, the United Arab Emirates or UAE is one of the most attractive locations for company formation. If you are new to business, then you have to go through certain parameters to undergo a hassle-free company formation. Milestone is a professional project management company that can help you with freezone company registration and renewal in Dubai, UAE.

Certainly, setting up your company in the United Arab Emirates is quite easy but there are a few mistakes that you should avoid.

Not Choosing the right free zone, company activity and business license

You need to understand that choosing an appropriate free zone, business license and company activity is very important step in the process of company formation in the United Arab Emirates. Certainly, the United Arab Emirates or UAE offers several options for business incorporation. However, choosing the wrong business structure will result in penalties and blacklisting of your company.

Improper legal agreements with local sponsor

When it comes to company formation in the UAE, you must look for a local sponsor. The UAE local sponsor must hold 51 percent of your company shares. Otherwise, you have to face legal penalties for your business.

Lack of agreements

When it comes to company formation in the UAE, businesses shouldn’t rely on verbal contracts.

Wondering, why? Well, it’s pretty challenging to prove the statement in case of any future dispute.