Six Important Tips to Start Business in Dubai and all over UAE
- Know UAE
- Choose the Business Activity
- Potential of Targeted Business
- Consideration of Expenses to manage Self and Family
- Choose reliable Business Setup Consultant to guide you
- Appropriate Allocation of Funds
1. Know UAE
United Arab Emirates (UAE) consist of Seven Emirates namely Abu Dhabi, Dubai, Ajman, Fujairah, Ras al Khaimah, Sharjah and Umm al Quwain. It is centrally located on the world map in the heart of Asia, Africa and Europe. Its location has made UAE an International Trading Hub. Tourism, logistics, hospitality, healthcare, Education, Construction and Real Estate are main businesses in UAE.
2. Choose the Business Activity
It is very important for entrepreneur/businessmen to choose appropriate business activity to enter into UAE business world. I highly recommend the following;
- Choose the business activity where you have Prior experience in your career.
- Choose the business activity carefully considering your investment/budget.
- Most of the business activities will need at least one to three years of time to break-even. Sometimes it might even take more time. Keep enough working capital to support initial phase of business in UAE. Insufficient working capital will lead to complete failure of business venture.
3. Potential of Targeted Business
I highly recommend to conduct detailed market research and financial feasibility for the business activity you’re looking forward to start, it might include;
- Location Analysis
- Rent analysis if that becomes significant part due to bigger space requirement in expensive locations.
- Competition expected from existing businesses with the same or similar activities.
- Future potential business competitors which can significantly impact revenues.
- Potential bank finance support for business. Generally business qualifies any financial loan from banks only after two to three years of profitable successful operations.
- Understanding primary details about labor laws, recruitment of employees, their expected salaries, law related to termination or resignation from employees, Staff accommodation requirements, visa expenses, health insurance expenses, etc.
4. Consideration of Expenses to Manage Self & Family
- It might be an appropriate idea to first settle alone for at least a year and understand living conditions before shifting family members unless you have deep pockets to overcome any unforeseen expenses, cultural differences or different climate conditions.
- Understand well the expenses of document requirements to sponsor parents, wife and children.
- Understand well school fees to support your children education along with different Curriculum’s.
- House rent/ or purchase price for home to accommodate your family.
- Health Insurance expenses.
5. Choose Reliable Business Setup Consultant to Guide You
- Make sure that you deal with experience consultancy firm who is at least having 10 years of experience.
- Make your own due diligence about all claims made by Company formation consultancy firm about its experience and number of total clients served etc.
- Check on-line reviews of reputation about your business setup consultancy firm in Google. Do not simply trust on testimonials mentioned on their websites. Choose the firm which has minimum 350 plus reviews and minimum 4.8 rating through these 350 to 500 plus reviews.
- Check the numbers of employees and office infrastructure available with consultancy firm, as financially capable firms can only occupy suitable office at premium location and recruit more number of staff members to make sure excellent standard of services.
- Make sure to obtain payment receipts for all payments you make to your consultant. Avoid giving cash. Always try to make payment through bank transfer or check.
- Always deal with consultant who advises you an appropriate company registration base on your business plan. Be it mainland Company, Free zone Company or an Offshore Company. Many consultants tries to sell only the companies where they have more benefit like some consultant will try to sell you free zone company setup only even though your business plan might need Mainland Company. Some consultant might try to sell you only Mainland Company setup even though your business plan might need Free Zone or Offshore Company Setup. Always choose research based advisory firm.
- Having UAE National Share holder or Service Agent is a must to register Mainland Company with department of Economic Development (DED). Always deal with Consultancy Firm who provides reliable UAE National share holder/Service Agent and also your Consultant should allow you to change/ replace the National Share Holder or Service Agent as and when it is required by you without any additional charges other than due amounts. Many firms do not allow this type of changes.
- Consultant should also allow you to deal direct with free zone authority at the time of renewal if you are willing to do so. Basically your association with a consultancy firm should be based on customer services and should not be by pressure or by an agreement.
6. Appropriate Allocation of Funds
- If the funds are limited then always try to spend wisely on rent, salaries etc.
- Always allocate required funds in marketing. Marketing is the only tool which can make awareness about your goods/services to potential buyers. Make appropriate usage of Social media, pay per click campaigns/ radio/ outdoor sign boards etc.
- Dubai and in general UAE is considered as Land of opportunities. At present it also offers 0% income tax.
- But as it is rightly said, you always need to be careful in your due diligence as relocating to other country is always a life-changing critical decision.
- ‘Flying Colour’ can assist you throughout your company setup in Dubai and all over UAE. We are operating in this industry for last 15 years and enjoying more than 400 online reviews having 4.8 rating.
The blog post is written by Mr. Raj Chairman at Flying Colour. Feel free to call today for a more detail on long term visa related queries. Please send inquiry to info[at]flyingcolour[dot]com or call +971 4 4542366
