Dubai has undoubtedly evolved to be a great business hub over the years. With various opportunities to widen your business, less restrictive measures, and quick legal procedures, Dubai has become the center of attraction for business people worldwide. But like every opportunity comes with a pinch of limitation, there are challenges to face while enacting a Business setup in Dubai. There are three types to setup business in dubai: Mainland company formation, Free Zone Comapny Formation & Off Shore Comapny Formation The most critical challenges which require your attention are listed below:
Local Business Partner: Finding a UAE local person to be your business partner is an important and challenging decision. A reliable and thoughtful partner is required to grow a healthy business. Thus, to search for a partner who would own the significant stake and also give you the liberty to deal with regular tasks.
Revenue Management: With many opportunities in UAE for expanding your business, some risks are also involved. Due to poor cash flow, 82% of the start-ups failed, as reported by the Association of Chartered Certified Accountants. Business setup in Dubai requires managing initial capital requirements and structuring costs wisely.
Company Ownership: If you are considering establishing an onshore or LLC company, you must know that it compels on a partnership with a UAE national. According to norms, 51% ownership of the company would be given to the UAE national while the investor holds only 49% ownership. It becomes tedious for some businessmen to agree on this norm and form trust.
Communication & culture: It is mandatory to address Business communication and Islamic culture before going for a Business setup in Dubai. There are different levels of business communication everywhere; In UAE, it is limited to the formal approach and directness. Islam plays a vital role in people’s lives.