What to Know When Starting a Business in Dubai

Today I will give you some tips on What to pay attention to when starting a business so as not to create problems for yourself.

Choose the right type of activity.

In Dubai, you can only carry out the type of activity that is specified in the license. That is, if you sell shoes, you will not be able to start selling coal. Or if you have a consulting license, you will not be able to hire in trade.

Therefore, you should initially correctly determine the plan and direction of activity that will suit you best. Both now and in the future, when other opportunities arise. If you choose the wrong areas, you will have to apply to the registration authority to replace or supplement them.

If the changes are drastic, for example, if you were engaged in trade and want to start providing web development services in Dubai, you will have to change the type of license. In both cases, you need to pay for filing applications.

Decide on the need to hire employees

• Several types of companies can be registered in Dubai:
• Organizations that operate in the Emirates;
• business in the free trade zone;

When creating a company that will operate in the UAE, there is a nuance: you need to hire at least 1 employee from among residents. To open a virtual office, it is not necessary to hire Arabs.

Don't pay money to speed up the opening of a bank account

There are "dealers" in Dubai who promise to help open a current account faster for an additional fee. It is not worth spending money, because no intermediary can influence either the decisions of financial institutions or the speed of their adoption.

5 Typical Mistakes of Beginning Businessmen in Dubai

When entering the Dubai market, entrepreneurs often face challenges that make their work more difficult.

Mistake 1: Taking too long to make decisions

If you are sure that your business has prospects, do not put things off. Act quickly: register a company, get a license, open an account, and rent an office. Otherwise, a more active competitor will appear who will take away your idea and clients. If you do not officially register a company, you will be perceived as a tourist who provides services illegally.

Mistake 2: Working through an intermediary

Often foreigners are afraid of the complexities of the U.A.E legislation because they believe that there are many "pitfalls". Because of this, they seek help from unverified intermediaries who, as they believe, understand better than themselves. But there are not many locals who know the intricacies of doing business in Dubai.

Most of the residents are immigrants from other countries, who are not always experienced entrepreneurs. By trusting the first assistants you come across, you risk running into the same novice entrepreneur, which is fraught with the emergence of mistakes and unjustified risks. If you are not sure that you can cope on your own, seek help from professionals who have extensive experience and can prove their qualifications.

Mistake 3: Over-rewarding the manager

If you have found a person who has experience working in the UAE and understands the intricacies of local business practices, motivate him correctly. Give bonuses and salary supplements, but do not include the employee among the shareholders. In case of disputes, the law takes the side of the shareholder. But if you give your employees a share in the company, your rights will be equal.

Mistake 4: Improper employment of workers

Emirates law requires anyone working in the country to have a residence visa and a Ministry of Labor card. It is prohibited to hire employees without formally registering them. This may be considered as employing illegal labor.

If the employee already has a visa from another employer, it is necessary to obtain written consent for the employee to work for your company.

Error 5: Incorrect provision of data to banks

U.A.E banks carefully check information about their clients, so provide the most complete and detailed information about yourself, your business, foreign assets, etc.

Some people hide some data or provide false information because they are afraid of data leakage and transfer to third parties. This is not worth doing, because banks guarantee the protection of information about account holders.