The UAE is becoming an increasingly attractive destination for companies to do business due to its stability, low taxes and efforts to modernize its business law system. The Emirate of Dubai has become a famous city for setting up companies. Driven by the advantages of free zones. However , Setting up a free zone company in Dubai can be complicated without the help of a business consultant.
free zones
A free zone in the UAE is a trade zone established to encourage inward investment in a specific business industry category to promote trade. The Free Zones Authority controls each free zone and is responsible for issuing licenses to operate companies in the free zone. There are more than 30 free zones in the UAE, Many of them are in Dubai. Foreign companies seeking to set up companies in a free zone in Dubai have great opportunities for successful investment in the UAE.
Establishing a company in the free zone
Many free zones in the UAE allow you to create a business license without the need for a physical office space. They provide smart/flexible office use to the license holder. However, This comes with limitations regarding the number of visas that can be issued. This shouldn’t matter if you want to hire no one and run the business on your own or have 1 to 6 employees. However, If you want to hire more than six employees, You will need to rent an office space in the respective free zone, Thus, you can seek the help of Itqan to rent offices in Dubai , and consult a full team of professionals specialized in establishing companies in Dubai in accordance with the laws of the free zone without exposure to any risks.
Risks you may be exposed to if the business is not set up properly
when you bEstablishing a company in DubaiYou need to meet all legal requirements, otherwise you may incur severe penalties. Foreign entrepreneurs, who adopt guidance from unreliable sources, run a high risk of making costly mistakes while setting up their businesses. Here are the most important risks that you may suffer from if your business is not set up properly.
Failure to obtain the correct license:
The first step in setting up a company is obtaining a license. All commercial activities require a valid license issued by the relevant authority. The Dubai government provides several incorporation options for foreign entrepreneurs to choose from. Choosing the wrong corporate structure or obtaining the wrong business license for your business can lead to or no license at all, To attract all kinds of punishments of all kinds. Shareholders can even be exposed to personal liabilities. So, If you are planning to set up a business in Dubai, get the right license.
Practicing commercial activity in a closed establishment in the Department
Companies that carry out commercial or economic activity in an enterprise closed by the Department of Economic Development of which the company is affiliated have to incur a heavy fine.
Not assessing worst-case scenarios
Business can mitigate risks either through insurance or contract. Assume that vulnerabilities and potential worst-case scenarios have been previously identified, assessed and addressed. In this case, appropriate safety measures can be taken, either through insurance or through contracts, To avoid such situations.
Non-registration of intellectual property
Intellectual property is one of the most valuable intangible assets a company can have. Intellectual property can bring future economic benefit to its owner and help exclude competitors from the market.
Starting a business while in legal employment
Start your own business while you have a valid work visa and are legally employed as an employee to work for a company. In this case, Violates labor agreements, laws and contracts in Dubai. This must always be done with the written consent of the employer.
To establish a successful business in Dubai, Foreign investors must have full knowledge and awareness of the legal requirements. Unlike that, They may end up making mistakes that can lead to severe penalties and expose their business to significant risks that they certainly do not need. Therefore, it is always advised to seek the help of a business consultant such as Itqan Dubai to help you establish your business in the right way.
