Challenges That People Face While Doing Business In The UAE
The United Arab Emirates and its famous city Dubai are known for three things, the rich properties, money and being a business hub. Yes, it is very popular for a business-friendly environment, favorable tax structure, and an honest legal framework which give the investors the best opportunities to invest.
On the other hand, like any other nation, the UAE also goes through some problems, which can act as a barrier between the investors and their businesses. But, if you are really interested in business, have a career-driven mind and have a lot of money then, you should try to establish yourself in the city because the challenges and problem will come and go. There are many ups and downs in doing business, which can be faced.
Well, today we are sharing some common challenges that you might face while doing business in the UAE.
- Ownership of the UAE Company:
If you are planning to start a business in this country then, you should have a local sponsor. Yes, to start an offshore or Limited Liability Company, you need a partner from UAE who should have more than 51% of the ownership. Example of a Dubai Offshore Company is GWS.
- Challenge of finding a local sponsor:
When you start your business, you need a sponsor and finding the right and trustworthy sponsor is difficult. You will need a local partner and sponsor who have a major stake in your company in UAE. It would be a very daunting task to find trustworthy and knowledgeable partners.
- Suggestions of VAT
In this nation, there is 5% VAT (value added tax), which is imposed from January 2018. This tax is introduced by the Gulf Cooperation Council (GCC) and it is applicable to all goods and services except basic food items, education, and healthcare products.
- Funds for the project:
For any business, people need an investor for funds. In UAE it is difficult to find people who can fund your business. As we know, any application for business loans is the arrangement of no less than 3 years.
- Social and Cultural Tenets
Islamic culture should be understood before you set up a business in Dubai or the UAE. It assumes an important part in individuals’ regular day to day existences, in the workplace and outside. The traditions of the nation ought to be watched, understand and the impacts of the Islamic religion on business cooperation must be considered while working in the UAE.
- Specifics of Business:
One must have a complete learning identified with the business set up in Dubai or the UAE. Since there are many districts to set up a business, everyone has specific particulars in regards to business propensities and way of life.
- Correspondence Style:
If you are setting up a business in UAE then, you must know about the correspondence style which is prevalent there. This will help you to streamline your business, when in operation.
- The market for employment:
When you begin an organization, you need to procure workers to maintain the business and UAE has certain guidelines and methodologies for the same. Once an individual gets to know the regulations then, there might be no difficulties for him.
- Individuals Management:
The most remarkable perspective is the decent variety present in workforces over the emirate. As you will work with individuals who originate from various cultures, individual’s administration will require some attention as well as concern.
Thus, a prior knowledge of above-mentioned challenges will help you to find local sponsors, workers, funds and other things prior to setting up the business.
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