Business setup in the UAE can be challenging and confusing. There are many myths about the business setup that you need to know before you start your own business. In this article, we will discuss some of those myths so that you can make an informed decision on whether to do your business setup in Dubai or Abu Dhabi.
Myth 1: You need a local partner to set up a business in the UAE
FACT: You can set up your business as a sole proprietor and buy a company from an existing one. However, it’s important to note that if you want to register your company in UAE under the commercial name “XYZ Company” then you will have to prove that there are no other similar names registered with or registered against the same address. This means that if there is already another XYZ Company that has been set up by someone else with a similar name & address etc., then this new company cannot be registered under it because technically they are already using their own name!
Myth 2 : Business Setup in Dubai is very expensive
The cost of Business Setup in Dubai is very expensive. Or the cost of business setup in Dubai is higher than in other countries.
FACT: Costs can vary depending on the type of business, but it’s usually between AED 5509 and AED 18,365 per month for office space and equipment rental costs (including computers), plus other expenses like utilities and internet access fees.
Myth 3: You can only set up a company in a free zone
FACT: You can set up a company in any Freezone or freehold area.
However, the UAE has many free zones and freehold areas that you can choose from. The Dubai International Financial Centre (DIFC) is one of them. It’s also one of the most popular options for setting up your business because it offers all kinds of benefits like tax-free zones and attractive incentives for investors who have businesses operating here.
Myth 4: Business Setup in Dubai is complicated
FACT: Business setup in Dubai is not complicated. The process takes around two weeks, but you can do it yourself if you want to save money. If you are nervous about the whole thing, there is no need to worry because there are many companies like AIG Corporate Services Providers who will help with this process for a small fee and make sure that everything goes smoothly. There are also lawyers who specialize in helping people set up businesses in Dubai and other countries around the world so they can help make sure that everything is done correctly.
The best way to understand what needs to happen when starting up your own business in Dubai or elsewhere is by understanding how each step works before moving forward with any steps so that nothing goes wrong during the setup
Myth 5: Business Setup in Dubai is a time-consuming process
FACT: Business setup in Dubai is a time-consuming process. The truth is that it won’t take more than two weeks to set up a business in Dubai, but if you want the best possible experience then it’s important to understand the process.
The first step of business setup in Dubai is finding an advisor who can help make sure everything goes smoothly from start to finish. They’ll take care of all the paperwork and legalities associated with setting up your company so that once everything has been approved by authorities (and hopefully not too many delays), there should be no further problems during implementation.
Myth 6: You cannot keep the profits of your company
FACT: The fact that you are a business owner means that you can keep all your business’s profits. This is true for all companies, whether they are small or large. The reason for this is simple: it’s in everyone’s best interest to ensure their investments pay off as much as possible, so why wouldn’t it be the same with startups? It’s important to note that this doesn’t mean that every single action taken by an entrepreneur will result in a profit; there will always be some expenses associated with running a business and these costs should also be included when calculating how much money was made from something like sales commissions or advertising campaigns. However, knowing how much revenue was generated from each source will help inform future decisions about where best to spend resources next time around!
Myth 7: The UAE is not a good place for banking
FACT: The main reason that many people are skeptical about setting up a business in the UAE is that they worry about the stability of their financial system. However, this is not really a problem when you look at it from an international perspective. The UAE has one of the most stable financial systems in the world and its banks are one of its biggest assets as well as its greatest strength.
In fact, some would say that there are few countries on earth that have better banks than those in Dubai or Abu Dhabi (where most major Western companies have offices). In addition to these two cities being home bases for most foreign businesses looking to do business abroad.
Myth 8: The UAE does not allow expats to own property
FACT: You can buy property in the UAE, but it’s not as simple as buying a house in your own country. The laws are different and you’ll have to make some adjustments to fit into their culture.
You can own property in the UAE as an expat or permanent resident. If you’re just visiting for a few months, then you may not want to take on this responsibility if it means leaving behind all of your assets back home. However, if this is something that interests you then there are many options available for purchasing real estate here such as villas or apartments (the most common form).
Read More: Fastest Growing Industries in UAE 2023
Myth 9: You have to learn how to do everything
FACT: You don’t have to learn how to do everything. If you’re a new business owner, it’s OK if you don’t know every aspect of running your company or even what an invoice is. You can hire people who do those things for you! As long as they have the right experience and qualifications, then there’s no reason for them not to be able to complete their tasks efficiently and effectively.
Myth 10: Doing business in UAE is impossible for women
FACT: Women can work in the UAE, own property, and establish businesses. They are legally allowed to own and run their own businesses in the country.
Women have been able to do so since the start of the UAE’s modern history. In fact, women have been playing an essential role in building this nation since its inception!
Myth 11: You should know Arabic to fit into the UAE business society
FACT: It is important to know that Arabic is not the official language in the UAE. The official language is English, which is spoken by almost everyone in this country. You can interact with people easily and understand them if you speak English fluently. If you want to build up your business, then it’s advisable that you learn Arabic so that your customers will also feel comfortable talking with you because they won’t be able to understand what each other is saying without knowing some basic phrases such as “hello,” “goodbye,” “thank you” etc.
Myth 12: The laws in the UAE are not very favorable for doing business.
FACT: The laws in the UAE are very favorable for doing business. This is because it is a free country and there are very few restrictions on how you can conduct your business. The government also has a good legal system and infrastructure, which makes it easy to do business here.
There are no taxes or duties imposed on imports or exports by any government body in the UAE; therefore all imported goods will be duty-free upon arrival at Dubai International Airport (DXB).
Conclusion
We think that it is important to clear up these myths because they are often the cause of misunderstanding. The truth is that it’s not just about finding a local partner or setting up a business in Dubai. You also need to learn about all the laws and regulations, which can be very complicated. It’s also important to remember that there are many ways of doing business in Dubai and there isn’t just one way forward for everyone.
