It is for good reason that Dubai has earned the moniker “city of gold.” As the commercial capital of the UAE, its robust infrastructure and plethora of business opportunities contrive to provide a conducive environment for entrepreneurial development. Little wonder, Dubai ranks as one of the prime places for conducting business globally.
Whether your campaign is a startup or a multinational looking to expand, Dubai may just be the perfect fit for you. With a largely wealthy population and a business-friendly environment, many industries are flocking to the Emirates as a hotspot to set up their operations. However, starting your business without due diligence might come back to bite you – hard.
Here are the 3 things you should not do when starting a company in the city of gold.
Don’t Start Without Undertaking Due Diligence
Every business person worth his/her salt knows that a business should be founded on research. Long before thinking of bringing your idea to Dubai, do some reading and engage people, preferably experts, who are conversant with working in the city. Their insights would save you valuable time and resources.
Your market research should be up to scratch, otherwise, you are likely to be drowned by other enterprises. Study your competitors, be sure of the demand for your product and develop a viable business plan that can help you thrive. You should also decide on the right jurisdiction or the location you should establish your business. The city has free zones that offer a conducive environment for new establishments.
Don’t Ignore Consultants and Experts
If you are well-versed in setting up companies, you know that whatever you read on a website, while relevant, should not be swallowed hook, line and sinker. Rules may have changed and there may be one or two details that may be lost on you as you read.
Working with companies with a proven track record and experience helping companies start in such a region can be a great boon for your company. And the good news is that you may not even have to be in Dubai for all these to happen. According to BusinessIncorporationZone.ae, you can start your business while outside of the UAE. Licensing, visa, bank accounts, etc. can be sorted even when you haven’t stepped foot in Dubai.
Don’t Enter into Agreements without written Legal Documents
The last thing you would want to have is legal wranglings that never end. That is why, from the outset, you need to be wary and have documents backing every agreement reached. Having a lawyer by your side as you start will work to your good.
For instance, if you want to start a business in the mainland, the government requires that you have a local partner who would be a majority shareholder i.e. 51%. Finding a local partner can be tricky but ensure that every agreement reached in duly recorded and legally binding. On the other hand, you can resort to the free zones enclave, which does not have such stringent requirements.
In a Sum
Dubai is a goldmine; your fortune might just lie therein. With several companies making Dubai a home for their enterprise, the time may just be ripe for your venture to join the bandwagon. However, such a step should not be taken without information and insight. Not only should you know what to do; you should also know what you should not do. The steps listed above are a primer on the don’ts regarding business ventures in Dubai.