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With world-class infrastructures, a diversified market, protective laws, and countless benefits, the UAE is a business attraction for investors from all over the world.

However, setting up a company is a new market reality is not as easy due to the tight processes, countless requirements, and groundworks.

Here are 3 common problems that business investors face when establishing a business in the UAE.



1. Lack of knowledge of the UAE market

Several factors affect the ease of process in setting up a business in the UAE. The country is attracting many international businesses and investments yet, coming from different parts of the world, may result in a lack of knowledge with the way operations are carried out in the Middle East such as:

(1) Rules and Regulations differ from other countries;
(2) Language which is important especially when it comes to processing document submissions, attestation, etc.; and
(3) Business options which basically lets investors have the correct type of company, locations, and setup

Without proper knowledge and familiarity of these things, companies wanting to establish a business in the UAE may not only take longer time than they should but are also risking having a proper company setup and following operations

2. Not having the time and resources to undergo through the necessary process

For companies that are expanding in the UAE, the whole job of establishing the business and taking care of the whole of operation until running can be a lengthy task. A good number of companies are only capable of initiating the business formation but not the rest of it. Thus, they turn to business consultancy services or partners who are experts in doing this in their behalf to ensure a smooth running of the companies.

3. VAT

One advantage of the UAE which was also a reason for so many companies to join the business market is the low taxes. From not having taxes into the gradual implementations of VAT laws, VAT rules and regulations are constantly changing and hard to keep up with. And for those who are not around to follow this, compliance can be a problem.
When should a company start paying VAT? When should a company not pay? What are the best practices to keep in order to avoid violations?

Many companies without a base in the country find this as a problem.

These are only three among the many factors that can stop a new business entering in a new market when it doesn’t have the right partner to guide and help with solid knowledge on the processes, rules and regulations, type of business, laws, best practices, research and operations.

Companies are at the risk of getting stuck in between stages of forming their businesses, taking a much longer time, or worse case – making wrong decisions and increasing their supposed costs.

This is where consultancies work with investors and companies. With consultants’ experience and expertise, investors get to understand their options in the market and choose the right decisions.

They are saved from the complicated ground work, and the business is advised based on facts and research.

Having experienced helping many types of business establishment in the UAE, SDAC Consulting DMCC shares its expertise in business formation from filing requirements all the way to operations.

If you’re looking to know more about having a business strategic planning in the UAE, contact us at commercial@sdacconsulting.com to arrange for a complimentary consultancy session!