This write-up is a must-read for every entrepreneur planning to set up a business in Abu Dhabi. The write-up lists the most common mistakes that these people tend to commit. These are also the mistakes that are most difficult to reverse. Read through the pointers carefully and work with your consultants to prevent these lapses during business setup in Abu Dhabi.
Choosing the Wrong Structure for Your Company
The business structure you choose for your new company must match your needs and goals. For instance, if your primary target is seamless international trade, set up your business in Abu Dhabi’s free zone. It will let you enjoy 100% foreign ownership.
Setting up an offshore firm is advisable for entrepreneurs who need to operate internationally but are not allowed to have a brick-and-mortar office in Abu Dhabi. Build a mainland company in the city if you have plans to do business across the United Arab Emirates. Here, you must note that when your office is on the mainland, you may need to have a local partner (for certain industries).
Submitting Incorrect Documents
Are you wondering why your business setup application is taking so long to be approved? It’s possibly due to the submission of incorrect or incomplete documents. Errors in lease agreements, MOA (Memorandum of Association), proof of capital, identity cards, etc., can get your application rejected. There can be a massive delay in receiving approval even due to minor problems like missing signature and business codes.
You must understand that you may be the most successful entrepreneur you know, but that doesn’t make you the most reliable person for arranging documents. Ideally, you must seek assistance from a consulting company like Consulting.ae if you want to ensure flawless documentation. They will also enable proper formatting of documents and make the application process faster and smoother.
Not Understanding Financial Obligations
Indeed, when setting up a company in Abu Dhabi, you will not need to make any upfront capital deposit for most business activities. Still, certain sectors require them. Not knowing whether you need to submit a bank certificate or capital proof for your license type can make it difficult to get a quick approval of licenses. So, always learn about the financial obligations of your business activities before submitting a license application.
See also: Why Businesses Turn To Accounting Firms For Forecasting And Budgeting
Not Considering Cultural Sensitivity
Abu Dhabi has a diverse demographic structure. Other than having Emiratis as residents, the city is also home to many expatriates from various foreign lands. Your offerings must cater to all effortlessly. Your actions must showcase your respect for local customs. You must create marketing campaigns that demonstrate your cultural awareness. If you fail to do all these, your prospective clients might not relate to your business, and your company may fail to make enough sales.
Final Words
Hiring a consulting company to guide you for business setup in Abu Dhabi will stop you from committing any of the above mistakes. It will take care of your company’s registration, licensing, taxes, paperwork, legal requirements, and more. What’s more, even after your company is formed and begins operations, you will receive ongoing support from the consultancy.
