Luckily, setting up a business is something that every entrepreneur dreams of. However, there is much more to think than just swooning over the prospective economic returns and tax exemptions. Not to forget, Dubai is the capital of the United Arab Emirates, which is why it is flocked with several businesses. The most intriguing to note about this city is, it has a diversified culture and some of the most lucrative projects from across the globe. This is why every investor thinks of investing in Dubai as the first option. However, there are several things that one has to be mindful of before diving full throttle in this decision. in this feature; we will sift you through a few things to consider when starting a business in Dubai:
1. Knowing the Difference Between Mainland, Offshore, and Free Zone is Important
Keep in mind; you need to understand the demarcation between the three main jurisdictions in Dubai, which are Mainland, offshore, and the free zone. Not to forget, these jurisdictions are divided according to the business requirements. These demarcations are created according to commercial activity. Taxation, feasibility, and the company’s ownership status. If you don’t understand the difference between these three parts, it will be hard for you to register a business in Dubai. If you want to go into the crux of each of these three, you can also consult a friend of yours who is already working in the highly competitive market of Dubai.
2. Know The Paperwork
If you are a business novice, you need to understand that the Dubai market is particular about the agreements, legality, documentation, and paperwork. This means any delay in the paperwork can prove to be dangerous for the company. In some cases, companies get heavily fined and are also forced to shut down. So failing to comply with the regulations will have repercussions, which is why it is crucial for you to educate yourself about the paperwork and legality of a new business in Dubai. Despise investing in the infrastructure and other assets unless you haven't gone through the documentation.
3. Technology is everything
There’s no denying the fact that Dubai is one of the largest hubs of technology. Regardless of wherever you go, you will eventually find something mind-boggling and intriguing to see. In simple words, hadn't it been for technology, Dubai would have never got this far. This means, when you start a business in Dubai, you will have to invest in technology to make things work. For example, even if you want to start a restaurant in Dubai, you will have to invest in high tech equipment to better customer experience. Similarly, you will need a construction job costing software to manage things when investing in more resources.
4. Keeping up With The Culture is Important
Despite the modern look of the city, it is bounded by cultural borders. This means, when you decide to offer a product or service to an average consumer, it should be in coherence with the culture of this city. Keep in mind, if you go against the ethical codes of society, you will put your business at stake. Right now, every business that is operating within the borders of Dubai is keeping up with the cultural codes. Although this city is cosmopolitan, it is a Muslim country, so you need to show respect for the culture and the people living there.
5. Understand The Costs
This is the most important factor to be considered when initiating a business in Dubai. Unless you don’t have a perspective on the business costs, you won't be able to make things work according to your needs. Every new debutant has to cater for operational costs and the government fees. This means, once you get free from investing in the different aspects of your business, there is still a lot for you to know and spend on. Depending on your business type, the costs will vary. The business license, trade name registration, immigration, visa, and government certifications are some of the most common expenses.