Thinking of Starting Your Business in Dubai? Know About These Challenges and How to Overcome Them
The UAE is one of the most coveted locations for setting up a business by entrepreneurs from all over the world for its tax-friendly and liberal policies and specific legislation. More than 100 of the Fortune 500 companies have their regional headquarter in Dubai. But with the array of opportunities, there are also some challenges that you should be aware of.
Ownership of your business
By UAE law, a new business must include a UAE citizen as a business partner with 51% ownership at the company. Otherwise, there must be at least a tie-up with some local company that will act as an agent for your business. Finding such collaborations can be difficult unless you have very good connections in UAE. You can seek professional help by hiring some good business setup consultants.
Finding a Local Partner
Finding a reliable local agent or partner, whom you have to trust with majority stake of your company, can be a challenging task if you are a non-UAE entrepreneur. Your consultants come here to help you. If you want to start a branch office in Dubai without getting into a partnership with any locals, an option can be to set it up in one of the free zones. The catch is that you can only trade within the free zone and can’t venture outside.
Applicability of VAT
As par 2018 regulations, UAE now has a VAT system in place. Unless you own a business that delas with healthcare, education or basic food items, you must pay 5% VAT. Like many countries, this requires a cumbersome registration and return process. Getting them done without any expert advice and help will be a challenge for any individual.
Culture and Language Challenges
The official language of UAE is Arabic. And the country has a very diverse culture. For a business to have a successful run in UAE, you must understand and value the culture and acknowledge them. Even though most of the business communication can happen in English, knowing the language yourself or someone who has, will be an advantage.
Proper revenue management
Channeling your revenue to the right management path is a challenge for any business. In Dubai, there are ample opportunities to invest and expand your business. However, choosing the right one to make sure that your investment turns into profit is quite a task. You should use professional guidance before that.
Obtaining the Work Permits
As a foreign national, you must first get a work permit if you want to start a branch office in Dubai. The visa norms and obtaining a work permit are quite challenging for a company as it has to abide by the regulations set by general directorate and foreign affairs. Getting professional helps from companies that specialize in this, is always the best approach to take.
If you want to get rid of these problems, you should always hire the best possible business setup consultants that you can afford. Their experts will provide you the right advice to overcome these challenges.