3 Do not before you start a business in Dubai
It is not easy to start a business in Dubai if you don’t have proper knowledge about their registration and licensing requirements. It is necessary to know the procedures and the penalties in case you take a wrong step. The procedure of registering your firm is not complicated, but a non-native can have problems while undergoing the process. Locals are good at knowing the laws and regulations of local authorities.
The UAE government has made favorable laws for investors. The tax laws and business policies are friendly. But, ignorance of the law can lead you to a problem. The UAE laws are strict, and penalties are high for not adhering to rules and regulations. If you don’t know how to start a business in Dubai, It is pertinent to consult a business consultant.
Below are the three don’ts of starting a business in Dubai
Choosing a local partner
According to the UAE laws, the local sponsor will own more than half of your business, and he can also exercise the authorities of a business owner. He will have the power to decide on your behalf. An unreliable local sponsor can hurt your business by making a wrong decision on your behalf. Don’t randomly choose the local partner and make him the owner of your company.
Don’ts about registering in free zones
The UAE laws offer you full ownership of your business if you register your company in one of the several free zones in the UAE. Every free zone has its licensing requirements and laws. Before registering to a free zone, it is recommended to know the laws of the free zone. The free zone authorities give visa according to the size and space of your office. So if you are planning to shift the entire staff to the UAE, you can fall in trouble. The laws only favor you if you know them. It is a good practice to have some online research on how to start a business in Dubai before giving it a random try.
Don’t about choosing the license
It is extremely crucial to select the licensing category according to your business model. You will not be allowed to operate if you will select an improper license category for your business. There are several business categories that have different parameters. The rules for some of the categories restrict the business owner to trade outside the free zones.