7 Common Mistakes When Opening a Company in Dubai

Updated on Thursday 22nd June 2017

7 Common Mistakes When Opening a Company in Dubai Image
Dubai is a well-known business hub where numerous investors try and succeed in a market full of opportunities. But before establishing a business in the Emirates, it is recommended to properly analyze the market and to consider the possible mistakes which can appear on the way. We have gathered 7 commons mistakes to avoid when opening a company in Dubai, and before we describe them, we remind that you can ask for financial services and advice for your business from our accountants in Dubai.

1. Don’t start your company without business consulting in Dubai 

The varied opportunities of doing business in Dubai are for everyone in search of making money in a fast manner, if possible. It is good to know that there are chances for mistakes to arise, regarding the investments you want to make and the goals to achieve. In order to have a clear idea of your business, a consultant will offer comprehensive impartiality and solutions to develop your company in a suitable manner. Besides that, once you start your activities, it is recommended to hire an accountant for financial planning and advice, in order to avoid any mistake in this matter.

2. Avoid applying for an inappropriate license for your business in Dubai

There are numerous business fields in Dubai from which you can choose, and a particular license is necessary before making any movement. It is recommended to solicit complete information in this matter and to apply for that type of license which come which several advantages suitable for your business, this way letting your company deal with more services.

3. Don’t look for cheap workforce in Dubai 

There are cases where investors want to start a business with low costs and decide to hire staff with minimal expenses at the beginning. It is suggested to focus your attention on skilled workers and make no compromises regarding the quality of your products and services. Instead of a cheap workforce for your company in Dubai, you might want to focus your attention on the future clients which need to be impressed by your quality services or goods, in order to continue the collaboration.

4. Don’t register your company in free zone in Dubai without asking for conditions

Dubai is a tax haven and a proper place for companies to settle their activities, due to the interesting and encouraging taxation system. The same goes for the free zones in Dubai, where numerous entrepreneurs choose to benefit from the advantages offered here. But there are cases where businessmen do not consider all the opportunities regarding the offices to rent and choose the first one presented, although there might be other solutions. If you have settled a fixed budget for your office for rent in a free zone in Dubai, it is recommended to analyze the market and to choose in accordance with your needs and also money. 

5. Don’t avoid hiring an accountant for your business in Dubai

As we all know, a complete control of your company’s finances is necessary. Our Dubai accountants can help you with bookkeeping, payroll, preparing the financial statements, and can offer assistance in the audit procedures in Dubai. Furthermore, our advisors can oversee the financial transactions in a company by keeping and registering the documents for further analyses. And if tax minimization solutions are necessary for your company in Dubai, our team of accountants can help with complete guidance and advice.

6. Understand the difference between Western and Middle East type of business

Dubai is for sure a gate to future and success, but there are cases where businesses and goals can take some time and patience is required. Doing business in the Middle Est is definitely different from the way things are going in the Western business environment, therefore, it is suggested to show patience, flexibility and to accommodate to the business schedules in Dubai. A business decision may take a while, therefore, try to understand that results come in time.

7. Don’t forget to verify a collaboration contract before you sign

Each contract comes with numerous terms and conditions, and even if the proposal is attractive, make sure to analyze all the details before signing it. This way, you can avoid possible conflicts or contract disputes and can agree on clear terms.

We invite you to contact our accounting firm in Dubai for complete information about the accounting services we can provide for your company.