Open/Close Menu SDAC Consulting Dubai. Professional Corporate Services, Company Setup and Formation Services

One of the critical decisions that entrepreneurs and company decision-makers have to take when setting up any business in the Emirates is choosing the right legal form.

There are so many types given by the government and in most cases, not choosing the correct one causes the business damages such as a longer time in finishing the setup, higher costs, and limitations in what the business is permitted to do in their operations.


It is one of the top challenges that business owners face. This is why it is beyond import to have proper guidance in the process of setting the business up right from the start.

Here are important steps that business owners have to take to help them in the process of choosing their form of business.

  • Analyze the cultural environment of the country – Knowing these things about the country you’re planning to setup your business in is knowing if the business would basically work. The culture, the behavior of consumers, and the practices are important things that may define the success of the business in this location.
  • Analyze the economic environment of the country -Part of the vast research that any business should conduct before finally deciding to setup a business in the country  is analyzing the economic status. Are these products with these prices make sense to this country’s consumer market?
  • Understand the rules and regulations of the country  – UAE welcomes investors in the country and keeps everything in order with the tight rules and regulations being implemented. This gives both opportunities and limitations to businesses. Companies have to be oriented with it to know the best options for them especially when identifying the correct license, authority they can belong to, and their limitations.

What can go wrong?

In cases where investors mistakenly chooses a wrong business form, they might:

  • Take up a longer time settling down than they should. Al lot of time, companies refuse to conduct a proper feasibility study before going forward with setting up their business in the UAE. In some cases, they encounter problems along the way such as getting stuck with requirements they didn’t foresee.
  • End up with higher costs or lose potential profit. Not knowing what’s ahead with a market research may cause a company stay longer and spend more during setup which barres their time for operation and instead spend more on the trial-and-error of setup.
  • Lose more money. Choosing the wrong type may have limitations that stops a company from operating the way it should which affects the overall success of it which causes worst situation like;
  • Have no profit.

To avoid these, it is best that investors seek the guidance of experts who are well-rounded in the types, authorities, rules, and regulations of setting up a business in the UAE. If you are keen with speaking with experienced advisors for your questions, you can avail an hour of complimentary consultation with SDAC Consulting DMCC by clicking SIGNUP.

Along deciding your business form are other decisions such as picking your category along with trade name and enterprise.

Should you want to know more, drop us a mail at commercial@sdacconsulting.com or click www.sdacconsulting.com