Do you plan to set up a new business in the UAE? Are you in need of start-up tips and advice before building another business venture in the UAE? If yes, kindly put on your entrepreneurial blazer and follow me.
Obviously, the United Arab Emirates is considered as the centre of international commerce and hub of profitable ventures.
So, setting up a new business in a place like UAE will require some level of expertise because of the nature of it market.
Precisely, the competitive nature of the UAE market doesn’t mean new business will suffer.
The Emirates is spacious enough to accommodate any kind of business establishment so far it’s legitimate.
Premise on the above, it’s pertinent you note that the UAE is an Islamic country and as such, all your dealings have to fall under the tenet of Islam.
Forbidden or prohibited business.
If you’ll be setting up your new business in the UAE, it’s pertinent you know that such business should devoid the following.
Not because of anything but because of the fact that the law in force in UAE is Shari’a Law and it considered the following business illegitimate:
- Importing of weapons.
As friendly as the United Arab Emirates market is, it forbid importing of weapons. Hence, any business of such is illegal.
- Pig trading.
Also, any business venture that has to do with pig is totally prohibited in the UAE. So if your proposed business is in this line, consider diversifying.
- Alcohol business.
Another business establishment that the government of UAE will not approve is alcohol business. Islam forbids it and as such, the Law in force there prohibits it too.
Read Also: How to Start a Profitable Business in UAE
Since our discussion is not on the prohibited business venture in the UAE, we do hope the above three will be enough to be your guide.
Similarly, every part of the world have representatives — either private or government agent — in the UAE all in the name of conducting business.
There are just too many reasons as to why setting up new business in the UAE pays, among them are;
- The United Arab Emirates is considered to be one of the highest incomes generating economies on the planet Earth.
- It’s one of the highly patronized tourist attraction centres to many travelers across the globe.
- UAE have unbeatable shopping experience with first class restaurants hotels, circus and many more.
- In the same vein, UAE is the home of investors because of it pleasing and enticing economy, etc.
Things to do before starting a business venture in the UAE.
Since the United Arab Emirates has had an attractive business environment compare to anywhere in the world.
Then, consider doing the following before setting up a new business.
1. Trading Licenses is the key.
Just as we have it in the other part of the word, knowing and understanding the UAE trading license is the key to starting a new business.
Essence, conducting any kind of business venture in the UAE without adequate license is illegal.
Hence, register your business with the right body designated for it if you want your new business to have a hitch-free journey.
Accordingly, one of the highly celebrated licensing bodies in the UAE is the Limited Liability Company (LLC). Most of the international body operating in UAE are under its umbrella.
However, it is ideal if you can get a consulting firm to guide you on the available business license and which of them will be suitable for your proposed new business.
2. Study your audience preferences.
As has been said earlier on regarding the enabling laws is the UAE. The countries there are mostly govern by the Sharia Law.
Inline with the above, the landscapes and business environment in the UAE is rich with professional practices, cultures and languages.
All of which you may have to understand.
Thus, with such an environment in mind, it’ll be easier for you to know your ideal target audience and their preferences.
More so, while making preparation to start a new business in the UAE, choose the best marketing strategies.
Reason is, setting up a new business in the UAE means your marketing tactics must compy with government regulations.
However, do a thorough research on the in demand goods and determine the competition level in the market.
Doing this will assist you in building an age long business strategy in the UAE.
3. Tailor your set up costs.
Be informed that starting a new business in the UAE is no joke. It requires some capital for doing the necessaries.
Like, registering and acquiring the trade license and footing the logistics alone eat up finances.
Therefore, you need to tailor your startup costs to avoid unnecessary spending.
For instance, there are free trades Zones that can offer you business permits with no upfront license fees.
Plus, you can establish your venture in any of the Dubai Free trade Zone. These areas are free from the laws of the region.
4. Widen your knowledge on VAT.
Since you’ll be starting a new business venture in the UAE, it’s ideal you know the essence and implications of VAT.
Having a full grasp of VAT will help you immensely in developing an effective business module.
Plus, efficient strategies in reducing and managing unforeseeable risks as well as managing your financial cash flow.
5. Knowledge of the law.
The last thing you need to consider before setting up any business in the United Arab Emirates is your knowledge of the law.
Ideally, this doesn’t mean you must know all the laws of the Emirates but rather, basic trade laws will suffices.
Understand the tradition, culture and the law in force there. And distance yourself from all the prohibited sales.
If you know all these, your new business adventure in the UAE will be a success.
The UAE has a free economy and a stable political structure and as such, provides an endless opportunity to new businesses.
Similarly, necessary skills and human resource are abundant in the Emirates without the UAE residents.
Therefore, all these advantages make the United Arab Emirates an ideal and better place to start a new business.