While most business owners know exactly why a formal business structure is important for it to be viewed as transparent, not everyone knows the best business structure that is suited to your business. This is where the complexity lies. It is critical that businesses pick the right structure to best reflect their future goals. This is exactly where hiring consultants who do company formations in Dubai would come into play.
One of the simplest business structure available is sole trading. You are the name of the business, you manage and operate it single-handedly. The structure is easy to set-up. However, it is not a structure that can accommodate vast growth plans. It is more suitable for small and home businesses, contractors, websites and online stores.
When there are two or more individuals who come together to operate a business, this structure is referred to as a partnership. A partnership too is a relatively easy structure to set-up. It is also cost-effective. Partners do everything jointly and are responsible for all aspects of the business. It is important that you take the time to consider whom you will be getting into a partnership with. Once you are in a partnership, you are liable for any words and actions of your partner. It is imperative that your partner is credible and trustworthy. And there should be a signed agreement on how the partnership should operate.
If you are looking to grow and expand your business, the company structure will benefit you. It is a legal entity and is a suitable structure for high risk company. It is a limited liability with individual shareholders. Startup businesses will find the company structure highly effective. A shareholder agreement is necessary when there is more than a single shareholder.
When deciding to start a business, considering the structure of the business will ensure that there is a strategy in place to meet your business’ long-term goals. Such strategies can be given by consultants who have immense experience in business setup in Dubai. You have to consider the type of business, the risk, the strategy for growth and involvement of others before determining the structure.
Each structure is different and must meet different ongoing costs. If you are struggling to find the right structure for your business, you need the expertise and experience of consultants who do business setup in Dubai to prepare the relevant paperwork and make sure that you are off to a good start.