Starting a business in a country like UAE can be tricky. The whole region-specific rules don’t make it any easier for an up and coming businessman to start his/her business. It is important for an aspiring entrepreneur to know all the aspects of setting up a business in UAE. Following points should be pondered upon before one can start a business in UAE:
If you want to start a business in a particular industry, your first step is to understand all the dynamics of that industry. One should have that basic knowledge structure of what they are into. Market research includes almost everything about the industry sector, location, target market, competition, etc.
Any business setting up in Dubai needs any one of the following licenses below:
• Commercial licenses which cover all kinds of trading activity
• Professional licenses which cover professions, services, craftsmen and artisans;
• Industrial licenses for establishing industrial or manufacturing activity.
Economic Development Department (DED) has the authority to issue these licenses. Without a license a company cannot legally start operating.
The presence of a local partner is vital in setting up a business, especially in Mainland zone. In UAE, every business which is formed under mainland company formation should have a local partner or local service agent. Even the businesses which are not formed under mainland company formation but need the government tie up must have a local partner or local service agent. Plus, a local partner could provide very valuable market insights as he/she is fully aware about that particular industry. It helps one’s business to stay ahead.
Acquiring an office space in Dubai can be quite a bit of a hustle. The demand is almost as twice more when compared to the supply. Finding an office space in a fully commercialized building is close to impossible because of which a lot of companies have to opt for semi-commercialized buildings. But this isn’t considered very suitable because having an office in a mixed building doesn’t exactly scream out professional. Due to such issues the concept of serviced office spaces came into existence which can cater to all the facilities and doesn’t take time to set up, from a reception to support staff, you can get all your requirements fulfilled for a price. This concept is hugely popular in UAE.
Budgeting and costing
Before setting up a business, one must always consider his financial standing. Apart from the initial expenditure in the setup, other costs like registration and licensing must be kept in mind. And since this world is full of uncertainties, it is always wise to have a budget reserve in case things go south.
You might do the first hundred things correctly but if you hire the wrong people, it is safe to say that your business would be doomed. It is very important to select a set of people who are work-oriented and self-driven. If you want a good start for your business, you should know that only your workforce can assure that.