Dubai is known around the world for its thriving economy and business-friendly environment. And with benefits like a great infrastructure, strategic location, and tax breaks, it’s no wonder entrepreneurs’ dream of doing business in the “City of Gold.”
The legal processes for business setup in Dubai are fast-tracked, there’s minimal paperwork, and the registration is simple. But while starting a business in this city is easier than in some other areas, starting a new project or business does not come without challenges.
Being aware of the rules and regulations that come along with company setup in Dubai will help you be prepared for what it takes to start your business in the UAE.
Here are some common challenges that an entrepreneur will face to setup a business in Dubai:
1. Company Ownership in the UAE
Dubai’s Mainland is a popular spot for business owners, but if you decide to have a business here, you won’t be able to have full ownership. A sponsor will own 51% of the company that is on the Mainland. If you want to have complete ownership of your business, you’ll have to setup your company in a Free Zone.
2. Finding a Local Sponsor
Finding a UAE national to act as a local sponsor can be a big challenge. This person will have to be trustworthy and deal with most of the legal business. They would have a major stake in the company while giving you the liberty to deal with business on your own terms. If you’re the kind of person that doesn’t like giving up control, you will have to if you’re doing a business onshore.
3. Money Management
It’s no surprise that new entrepreneurs have to spend their cash wisely, but it’s especially important in Dubai. Why? Because Dubai is known for its luxury, and if you don’t watch your cash closely, you could get caught up in the spending. A recent study found that 81% of startups in Dubai fail because of poor money management. So, beware of your spending!
4. Finding Office Space
You will need to rent a business space, and you’ll want to make sure it is in an area that will be profitable for your business. There could also be a size requirement on the space you get depending on what area you choose to do business in. You’ll also have to have all the proper paperwork filed and submitted before the company opens.
5. Understanding the Tax Environment
Dubai is known for being a tax haven, but not for all companies. Banks and Oil companies will have to pay a corporate tax.
6. Organized Workflow Management
Because Dubai is such a fast-paced area, some businesses struggle to stay organized. Poor workflow management could end up in wasted money. Organization is an essential part of running a business in Dubai that will succeed.
7. Limited Access to Information
While many websites can tell you the steps for business setup in Dubai, the information on how to actually do it yourself is pretty vague. To make sure that you don’t skip any steps, you can always hire an experienced business setup consultant like MSZ Consultancy.
8. Understanding Cultural Values
Dubai is known as a melting pot with a diverse workforce from different cultural backgrounds. While the city is dedicated to forward-thinking and modernization, it still has a strong Islamic heritage. This may be different than what you are used to in your country. While doing business in Dubai, you will have to have knowledge of these Islamic values.
9. Business Specifics
There are so many different regions to setup business in Dubai and each area has its own rules and regulations. So, before starting a business, you will need to be familiar with what is allowed in each area and how companies operate there.
10. People Management
Successfully managing people is a huge benefit for running a business not just in Dubai, but anywhere around the world. However, in Dubai, you will be working with people from across different diversities, so people management will need to be learned and carried out successfully.
Easy Business Setup in Dubai with MSZ Consultancy
As you can see, there are challenges with setting up a business anywhere, including in Dubai, where setup is known for being easy. This is why MSZ Consultancy offers hassle-free business setup services. We won’t just setup the business for you, we will guide and consult you through the process to make sure you have a full understanding of the way business works in Dubai. We will make sure you understand the rules involved, have all the paperwork you need, and meet all the deadlines required to smoothly and successfully open a business in Dubai that will thrive. Find out how MSZ Consultancy can help your business dreams come true. Call today on +971 52 544 1248 for a free consultation