While business giants in Silicon Valley still get the top spot as powerhouse business giants, Dubai proved to be a worthy competitor in terms of growing numbers of business owners investing in this Emirate. It is not surprising though. Ever since Dubai and UAE opened its doors to foreign investors, a lot of entrepreneurs take full advantage of this opportunity and starting branching out in Dubai.
Although business set up companies in Dubai claimed that the launching a business is easy, there are some business owners who fail to thrive in this opportunity-laden city. If you are keen on being a successful business owner in Dubai, here are some business setup mistakes that you need to avoid:
- Not doing your research about the location
When people read or hear the phrase “Free Zone”, the first few things that come to mind is a tax-free city. Although it might be true for business districts like the Ajman Free Zone, you need to look beyond the tax-free concept. Like for instance, getting an office space in your prospective Free Zone location.
You need to check if there are suitable office spaces that would fit your requirements. In most cases, business owners find out too late that the location they chose did not have an available space to house the kind of business they are launching. It would be best to check these details first before registering your business.
- Choosing a business category that is not aligned with your business model
Dubai and the UAE government allow and accept applications of businesses in different business categories. For aspiring business owners who are just launching their business, picking a business category is crucial. Picking the wrong one will cause a major setback on your business. Each license category has its advantages and limitations. Knowing what type of business category best suits your business activities and models.
- Opening bank accounts without knowing the progress
Some business setup and license categories require business owners to open a bank account. Before you open one, be sure to go over the details of the account, including the bank charges. Not knowing what you are paying for can result to incur expenses.
- Agreeing to sponsorships without a written agreement
Sponsorship is one way to make your Dubai business launch convenient. These sponsors can provide the support and guidance you need to navigate in Dubai’s business landscape. But do not just agree with something, especially if there is no written agreement. Putting everything in black and white is the best way to go when you are dealing with a sponsor.