Company formation in UAE can be quite exciting, as well as, encouraging. It can be quite profitable for any businessman to set up a business here. It has been seen many times that entrepreneurs had to face several problems to establish their business in the UAE. But, by not doing a few mistakes, this can be avoided. So, if you are planning for a business set up in Dubai free zone or anywhere else, you must avoid doing the below-mentioned points in order to make the process smoother and successful:
- Not acquiring enough information regarding company formation in UAE- Some entrepreneur does not do enough research before going into the process of forming their business. Thus, during the process, they face problems like getting to know a new rule or requirements which they did not know about before. This obviously delays the process and brings much more complications. So, it is always advised to gather as much knowledge as possible. However, you should not only rely on the published information. You can either contact the concerned authority or a professional consultant to verify the information published somewhere.
- Choosing a location without assessing it- For any business, the location holds immense importance in its success. This is why you must always find a place that best suits your business and helps in achieving your business goals. You should see if the location is profitable for your business. Some considerations would be the cost, distance, demographics, suitability for your business model etc.
- Not hiring a professional agent- Another mistake that many entrepreneurs do is not getting help from an expert to set up their business. No matter how much knowledge you have collected about the procedure, an experienced professional will always know better. Especially, if any difficulty arises, their assistance will be of great help. From handling the local government to doing the actual registration, they can be the best person to help you out.
- Making a deal with a local partner in the absence of a written agreement- This can be one of the biggest mistakes one can do. For some types of company, it is mandatory to have a partner in the business who is a UAE national. But, no matter how well you know that person, you should never get into a deal or sign any sponsorship if there is no written agreement. You must not solely depend on any verbal agreement and rather get one written and attested by the local court. This way, you can be sure that your share is secured and you will get your profits in due time.
So, these are some of the mistakes that you must always try to avoid doing to ensure that you set up your business successfully without facing any problems.
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