What mistakes do people make before starting a business in Dubai

To conduct business and open a company in the UAE, one must understand that the legal system in the UAE is based on both the principles of the civil code and the Islamic Sharia Law.

5 ways to open a company in the UAE
Essentially, there are five options available to foreign investors who are looking to conduct business or commercial activities in the UAE:

"Shift method" or trade from abroad.
Through an agent / distributor.
Open a local company.
Joint venture.
Merger and Acquisition.

Most Popular Mistakes

Saving on the office - the use of "virtual offices"

Legal aspects and global standards require entrepreneurs to have a full-fledged office. Supervisory and banking institutions need to understand where the center of enterprise and financial flows is located.

The minimum area of ​​a full-fledged office is 19 sq. m. It should be equipped with comfortable workplaces for hired employees.

Registration of a company in a virtual office is interpreted as the absence of a full-fledged office.

And an incorrect execution of a lease agreement or placement of a company in premises with unsuitable conditions can cause serious trouble: an entrepreneur runs the risk of encountering difficulties in opening bank accounts and resolving various issues with the migration service and the Ministry of Labor in the process of resolving all the difficulties associated with a visa.

Failure to comply with the requirements of banks to comply with the KYC procedure

The banking system of the UAE strictly complies with international regulations on KYC (Know your customer) / AML (Anti-money laundering) procedures. Full compliance with the KYC procedure obliges banks to request from companies up-to-date data on the owners and signatories of accounts, the origin of funds, foreign assets and counterparties.

Sometimes entrepreneurs submit incorrect information to financial institutions, which is associated with fears that their confidential information may be leaked. However, such worries are in vain, since any data of UAE resident bank account holders is protected under the CRS (Common Reporting Standard) tax information processing procedure.

In addition, special attention should be paid to the transfer of counterparty data to banks. If among them there is a person who is on the sanctions lists or conducts business in jurisdictions that are undesirable for the UAE, this can provoke blocking of bank accounts and termination of transactions.

To avoid these mistakes and start a successful business in Dubai you should seek help from https://emirabiz.com/ business consultants in dubai . I'm sure you won't regret it


Samara

14 Blog posts

Comments