August 27, 2019
Creation Business Consultants Top 5 Tips for Starting a Restaurant in Dubai

TOP 5 TIPS FOR STARTING YOUR RESTAURANT IN DUBAI

Over the years the United Arab Emirates (UAE) has established itself as a leading Food & Beverage (F&B) destination in the Middle East region. Dubai continues […]
July 31, 2019
DXB 3 960x720 - GUIDE FOR STARTING A TECHNOLOGY COMPANY IN DUBAI & THE UAE

GUIDE FOR STARTING A TECHNOLOGY COMPANY IN DUBAI & THE UAE

Over the year’s technology and the pace of urbanization globally has accelerated and continues to affect infrastructure, social, economic and environmental structures. Technology’s impact on today’s […]
July 17, 2019
789 960x720 - UAE APPROVES ELIGIBILITY FOR 100% FOREIGN OWNERSHIP

UAE APPROVES ELIGIBILITY FOR 100% FOREIGN OWNERSHIP

On the 2nd July 2019, the UAE Cabinet decided on 122 economic business activities across 13 sectors to avail of 100% foreign ownership opportunities. The primary […]
July 11, 2019
photo 1512453979798 5ea266f8880c 960x720 - UK COMPANIES DOING BUSINESS IN THE UAE

UK COMPANIES DOING BUSINESS IN THE UAE

Is it a good time to expand your UK company to Dubai? How prepared are you to take your UK firm to a new market? Is […]
July 3, 2019
backlit buildings burj khalifa 2115367 1 960x720 - IS IT TIME TO EXPAND YOUR AUSTRALIAN BUSINESS TO DUBAI & THE UAE?

IS IT TIME TO EXPAND YOUR AUSTRALIAN BUSINESS TO DUBAI & THE UAE?

The United Arab Emirates offers a myriad of company structuring and formation options for Australian Multinational Corporations, Small to Medium Enterprise and Entrepreneurs. If you have […]
June 30, 2019
UAE Economic Substance

UNITED ARAB EMIRATES ECONOMIC SUBSTANCE REGULATIONS

April 30 2019, the United Arab Emirates (UAE) Cabinet issued the Cabinet of Ministers Resolution No.31 of 2019 (concerning economic substance regulations in the UAE, “the […]
May 22, 2019
SME - TOP 10 PROFITABLE SMALL BUSINESS SURVIVAL TIPS FOR DUBAI

TOP 10 PROFITABLE SMALL BUSINESS SURVIVAL TIPS FOR DUBAI

Small and Medium Enterprises (SMEs) are the pillar of United Arab Emirates economy, comprising 95% of all establishments in the Emirates. SME businesses account for 42% […]
May 14, 2019
Creation Business Consultants_Economic Substance for your UAE company

HOW TO KEEP YOUR COMPANY (AND BANK ACCOUNT SAFE)

In this era of modern, fast-paced business so much rides on a company’s reputation. The way financial institutions, customers, suppliers and other market players view the […]
April 16, 2019
GUIDE FOR WRITING A WINNING BUSINESS PLAN TO ENTER THE UAE & GCC MARKET

GUIDE FOR WRITING A WINNING BUSINESS PLAN TO ENTER THE UAE MARKET

It is essential for any new Dubai company, business and entrepreneur to commit time to create a sound business plan. Business plans and market research play […]
March 20, 2019
medic 563423 1280 960x720 - Dubai Healthcare City Free Zone to Reduce Company Setup Cost

Dubai Healthcare City Free Zone to Reduce Company Setup Cost

Dubai Healthcare City Authority (DHCA) announces that it is currently revising fees for some of its healthcare, commercial, research and education offerings. Dubai Healthcare City (DHCC) […]
February 24, 2019
adult 3327336 640 - HOW TO OPEN A COMPANY BANK ACCOUNT IN DUBAI, UAE

HOW TO OPEN A COMPANY BANK ACCOUNT IN DUBAI, UAE

Once your Dubai company setup is complete the next step to consider is the corporate banking options that are available to you and your company. Opening […]
February 12, 2019
Business mistake - TOP 10 MISTAKES MADE WHEN SETTING UP A BUSINESS IN DUBAI & HOW TO AVOID THEM

TOP 10 MISTAKES MADE WHEN SETTING UP A BUSINESS IN DUBAI & HOW TO AVOID THEM

Incorrect advice on structures  The most crucial part of the company setup process is receiving the correct advice on your company structure. If your company is […]
  1. Incorrect advice on structures

 The most crucial part of the company setup process is receiving the correct advice on your company structure. If your company is setup incorrectly, it can cost you thousands of Dirhams and weeks or months to correct – delaying your ability to start earning profits. It could also see your company miss out on lucrative contracts because customers cannot award your company business. Ensure the advice you are receiving doesn’t come from a sales pitch, rather from years of commercial experience and reputable qualifications.

  1. Not recognizing value for money

bank 2907728 1920 2 300x300 - TOP 10 MISTAKES MADE WHEN SETTING UP A BUSINESS IN DUBAI & HOW TO AVOID THEM

With so many company structures to select from, it can be overwhelming to understand which is the perfect fit for you. There are more than 50 free zones to choose from and onshore companies have more than 2500 business activities available. The cheapest option is not always the correct option. The best value you can find is a compliant company structure that maximizes your profit potential, both now and in the future.
  1. Setting up a company that lacks credibility

Some banks are now refusing to issue corporate bank accounts to companies established in certain jurisdictions. This could render a newly established company worthless if it cannot open banking facilities. Check thoroughly before committing yourself to ensure you will have appropriate banking options to suit your business.

  1. Putting shareholders investments at risk

Having the wrong shareholding structure for your company could mean you do not have control, putting your investors’ money at risk. For a Dubai mainland / onshore company, you need know what to look out for and how to recognize and appoint a safe corporate nominee. Likewise, free zone companies can eliminate their risk if their shareholdings are structured correctly.  With several options available to safeguard shareholder investments, this is a risk that can be reduced by more than 85% if the correct advice is followed and implemented.

  1. Not planning for the future

Establishing a company based purely on today’s requirements could see you incurring the cost of another company setup in a years’ time. Research shows that 64% of companies incur unnecessary costs to amend their business licenses between 18-24 months of establishment due to poor forward planning. Save your time and money by setting your company up correctly from the outset, safe in the knowledge that it will be suitable as your operations grow.

  1. Errors on company trade licenses 

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Nearly 1 in 3 companies have errors on their trade licenses. Mistakes like this can be expensive to the shareholders, costing on average AED 10,000 to correct. These errors come from setting up the company incorrectly, not keeping current on changing regulations and not fully understanding the operations and requirements of your business to begin with. Make sure you are getting the correct trade license and activities for your business before incorporating.
  1. Operating with the incorrect license

Your company needs to have the correct license when operating. Getting this wrong could lead to fines of up to AED 100,000.  Not only can the company face fines, the General Manager can be personally liable and fined. To protect your shareholders, company and General Manager, ensure you company setup is correct for the type of trading you will be doing.

  1. Not maximizing profitability opportunities

¾ of all companies established in 2018 missed opportunities that could have boosted their profitability. When setting up your company, an in-depth knowledge of government processes and regulations will ensure that you receive the greatest number of activities on your trade license. This gives access to additional target markets and revenue streams to boost profitability and returns to investors.

  1. Not understanding local laws and regulations

businessman in handcuffs in courtroom 78494866 576045bd3df78c98dc314a05 300x200 - TOP 10 MISTAKES MADE WHEN SETTING UP A BUSINESS IN DUBAI & HOW TO AVOID THEM

An Australian woman faced imprisonment for 6 months and fines for allowing employees to work for her company without the correct visas. It is imperative that you are aware of the laws and regulations you will be required to abide by. As soon as your company is setup, make sure you have an expert familiarize you with the relevant laws so you avoid expensive mistakes.
  1. Not keeping up to date with current and changing regulations

Like all countries, UAE regularly changes and updates rules and regulations that affect company owners. To avoid fines, jailtime or worse, it is vital that you understand the laws that you must abide by and know when changes will impact you, your business and your shareholders. The Federal Law No. (2) of 2015 on Commercial Companies in the United Arab Emirates (UAE) is just one of the many laws that investors and managers must follow. You must keep up to date with all of these changes.

 

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