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Dubai is the strategic location for conducting business. Companies or business people from different parts of the world flock to the country to start businesses while availing attractive benefits and opportunities it offers. Since Dubai has the competitive advantage of being a strong economy, it is ideal for conducting different kinds of business activities. However, if you plan to set up a business in Dubai, there are various obstacles you should be aware of.

Obstacles of Business Setup Process in Dubai

As you are planning to start a business in Dubai, here are some roadblocks you should be well aware of before you proceed towards setting up a company in Dubai:

1. Knowledge of Registration & Compliance

The first step of the Business Setup Process is ensuring that you are well aware of the legal aspects and type of registrations required for conducting business in Dubai. You need to understand the basic aspects of laws and document eligibility by the Department of Economic Development to register your company. You must get information about visa requirements, licenses, regulatory requirements, etc., before beginning your business setup process in Dubai.

2. Free Zone and Off-Shore

The second thing one should consider is taking up space in Dubai to start a business. Notably, the companies have a choice to either choose Free Trade Zones or off-shore as their way to operate in UAE, and this is a crucial aspect you need to consider when planning business setup process in Dubai. In FTA, you can get access to flexible spaces and office options, but you need to make note that you can’t have direct trade in the local market of UAE. On the other hand, in case if you plan of Off-shore, you will not have 100% ownership of the business as you have to have a sponsorship which will bring the ownership percentage to 4

3. Type of License

In a Business Setup Process in Dubai, the kind of trade license you choose for your business plays a crucial role in the type of activities you can conduct in your business. The various types of licenses available are Commercial License, Industrial Licenses, Professional License, etc. You need to understand that purpose of these licenses differs in terms of carrying out activities like – buying and selling, manufacturing, professional services, etc. So it is advisable to consult an expert before applying for the same.

4. Cultural Aspects and Islamic Regulations

The UAE as a country is strong in Islamic laws and regulations based on the teachings of Islam. Before you start the business setup process in Dubai, you need to be assured that you don’t conduct anything that is out of the norms laid out under the laws. You have to have Islamic values to run your business smoothly.

5. Higher Investment Required

While it is good to think about starting a business in Dubai, you should also be aware that you need very high investment to set up a business in Dubai. The costs include living costs, licensing costs, rental, human resources, etc., which you have to bear upfront.