4 Tips to Setting up A New Business in the UAE
There are so many reasons as to why you may be considering setting up shop in the United Arab Emirates. First, the UAE is considered to be among the highest income developing economies in the world. Secondly, it’s a common tourist destination to many travelers around the world because of the unbeatable shopping experience and the top class restaurants and hotels, among other things. Apart from these, the UAE is a haven for investors from around the globe because of the welcoming economy. Most countries in the United Arab Emirates have a suitable and attractive business environment than in other parts of the world. Here are four tips to setting up a new Business in the UAE.
- Understand the Trading Licenses
Like in most parts of the world, it’s illegal to conduct business without the proper licenses. It’s imperative that you register your business with the right corporate vehicle. The Limited Liability Company (LLC) is one of the licensing bodies in the UAE. They take care of international investors who are establishing operations in the UAE. However, given the time and paperwork involved, it is essential to find a consulting company to advise you on the different types of trade licenses that would be ideal for your business setup in the UAE.
- Understand the Customer’s Interests and Preferences
As we may be aware, most countries in the UAE are governed by strict Sharia laws. In addition to this, the business landscapes are rich with cultures, professional practices, and languages that you may need to learn. With this in mind, you’ll be able to determine your target customer base with respect to their interests. While on the same note, choose the right channels on your marketing strategies. Starting a business in the UAE means your marketing strategies have to be in line with government regulations. It’s also important to do extensive research on the goods or services in demand and determine the competition in the market. This will help to provide you with a long term business strategy while in the UAE.
- Minimize Your Business Set up Costs
Setting up a new business in the UAE is nerve-wracking especially to your finances. This is because it will not be cheap given the licensing costs and other logistics that may cost more than your initial investment plans. This means that you may need to cut back on unnecessary spending. For instance, look for alternative working spaces that will offer you free zone business permits without asking for upfront license fees. For instance, in Dubai, most of these free zones are regulated by the Dubai Free Zone Authority and these areas are not subject to laws of the region.
- Understand the Implications of VAT
For a new business set up, it’s important to understand the full impact of VAT on your business in the UAE. This will help you to develop an effective business strategy in managing and reducing unforeseeable risks, compliance, and managing your cash flow.
With the vibrant free economy and political stability, UAE offers endless possibilities to new business frontiers. There’s also an abundance of human resource skills with the inclusion of the UAE residents who are joining the private sectors. This, therefore, makes UAE the ideal place to start up a business.