Many investors that come to Dubai to set up a business in the free zones are relatively new business entrepreneurs. They come to Dubai for the tax-free incentives, the business-friendly environment and the ability to be in an area of the world that is booming.
However, starting a business in a foreign country, even one as investor-friendly as the UAE, does require additional planning and consideration with regards to the steps to take and the funding issues that may arise.
In the free zone areas, the foreign investor can retain 100% ownership of the business. That also means that the business owner doesn’t have the expertise, advice, and knowledge of a sponsor, which can present a challenge. Working with an experienced law firm in corporate and business setup in Dubai can eliminate those challenges and provide information, insight, and support for new and experienced business owners.
Develop a Comprehensive Business Plan
In the free zones or in sponsorship, having a comprehensive and complete business plan is a must. Not only will this be required for company setup approval, but it also forms the guidelines for how the business will grow and expand into markets over time.
Being realistic with the business plan and relying on accurate, real-world information and data will be essential to allow your business to continue to operate until a client base has been established.
Funding the Gap
For many types of businesses in Dubai, there is no specific funding requirement to be approved. This can leave startup companies without an existing customer base in an income gap for a period of months to years. This gap is the time where the business is operating and moving into new markets but not yet generating a profit.
Understanding where the funding will come from for that time period will be essential. Knowing the costs of doing business in Dubai will need to be carefully considered as well as the cost of the day to day operation of the company. Contact STA Law Firm for more information.