7 Things You Need to Know before Setting up a Business in UAE Every year, the United Arab Emirates motivates huge foreign investors with dynamic profitable ideas to consider business setup in UAE. The recent World Bank listed UAE under the 'Ease of Doing Business survey' in the world. The UAE market has been welcoming - the oil price impact on the economy is limited as oil accounts for the least percent delivered by the country's GDP and has set to strategize drop further dependence. The motto is to create relaxed measure for diversification in the county's business module. These factors largely impacted the avenues of business setup in UAE. However, just like the phrase, all that glitters is not gold - it is important to know few important things before you venture too deep into the UAE market. The decision of starting-up a business activity and the dealings involved in any business setup can be traumatic experience without proper assistance; moreover the cost of setting up a business in UAE could be extremely expensive if you lack knowledge on the required procedure. Setting up a business in UAE, is an ambitious endeavor. The UAE gives a platform to every businessman to build his dream empire but as an entrepreneur it takes dealing with the global market and hostile competition making it a task for generations. Know the difference between - Mainland / Freezone / Offshore: The layout of business setup in UAE is divided into three main parts: 1) Mainland, 2) Freezone, 3) Offshore. These jurisdictions are allotted according to your requirements on ownership, taxation and feasibility. Moreover, it is also based upon the business activity conducted by you. Know that you will require Huge Investment: Understanding that you are in a foreign market and the process of learning and implementing would take time. Be sure you have an operational cost estimated apart from the investment you make solely on your business. The governmental fees, certifications, acquiring permission will take out another source of monetary outflow from you. Know your Legalities and Paperwork: The UAE market is very stringent in terms of legalities with regards to agreements, paperwork and documentation. Any delay in such issues may also led to heavy fine on the company. Thus knowing your legalities is a good thing to do. Consider the fact that UAE acts as a global platform for talents from around the world. The booming economy, the world-class infrastructure and connectivity with over 200 countries instigates several businessmen - small scale as well as multinational to set their business here. This makes competition antagonistic and creating a significant impact is tuff. Know your Incorporation Process and Licensing Stages:
When you decide on setting up a company in UAE, most of the research is done on market investigation and practicability of business in the UAE. Knowing the new place, currency, trends and so on takes a lot of limelight wherein you forget to learn the most important of all - the incorporation process and the licensing of the company. It may look like a regular governmental thing to you, but make sure to do a thorough research about the licenses involved and the one that suits you company. Incorporating a trade license is a huge process and companies end up acquiring trade licenses that do not fulfil their needs or allow carrying out specific activities. Know that time is precious: UAE is one of the richest countries and staying in UAE with a regular income is impossible. So if you are a sole proprietor or do not have any external income keep enough reserve to sustain yourself until your business takes a leap. Contemplate your probabilities right from the beginning and do not waste your time once you start. Know that you are under cultural borders: UAE is made-up of seven Emirates, while some of the are more lenient of cultural circumstances others are stern. Nevertheless, it is imperative to recognize and respect the cultural boundaries set by the country. A business idea must have reverence to this. These things that you need to know will help have a better outlook towards the UAE market. It does not mean that UAE lacks efficiency but like every other country it does has some constraints. To help yourself better you might rather do a complete research or talk to a business setup provider or a consultancy in UAE.