Setting up a company, in general, entails many dos and don’ts. And when it comes to UAE, some specific factors can make or break your project. Knowing what to do would be quite subjective, depending on the brand objectives and specifics. However, you can keep a check on what not to do when setting up a company in the UAE.
Here is a list of some common mistakes that are made while setting up a company in UAE that you should avoid:
- Not clearing out Employment Regulations
One of the first blunders made by a business in the UAE is to violate employment agreements. A due NOC (No Objection Certificate) is required by an employee, rendered by the employer, to open a business. There are also specific sets of employment laws that need to be complied within the UAE. Valid work permits and employment Visas are a must before any employment is provided.
- Lack of selecting the right Free Zone and Licensing
Another common mistake is seen in the failure to select the correct Free Zone and business licensing for your company in UAE. There are specific free zones in UAE that are deemed suitable for particular business-related activities. One of the first things to do should be ensuring that your free zone permits the kind of business you are looking to setup. An error in this department at a later stage can not only be penalized but can be very difficult to rectify.
- Discrepancies with legalities
Many first-time business owners are prone to the risk of neglecting due diligence before their company formation in UAE. Legal agreements, sponsors, clauses, contracts, and partners all need to be managed in compliance with the laws of the land. All contracts should be rendered as notarized legal documents that hold all necessary details and agreements to clarify any future disputes that might occur in this domain.
- Blindly following the Internet
It might seem like the Internet holds the answer to all your queries. However, relying solely on the information you find online can be a dangerous route to take. At times you might come across contradictions and overlaps of information. Especially when it comes to tackling the legal aspects, the Internet can give you information, but you can still miss out on some loopholes. This is why it is advised to have experienced professionals on board to assist you with different aspects of the setting up process.
- Failing to Register Intellectual Property
For budding businesses and brands, registering their intellectual property is of great significance. These rights could be blurred in the future regarding profits and assets if this factor isn’t taken care of initially. All brand entities, logos, marketing assets, and documents should be secured under intellectual property rights. This will instill a safety factor so that no third party can copy or reproduce your business assets without due prior permission. Securing these aspects of the brand from the get-go, is thus, crucial for getting started with setting up a company in UAE.
Conclusion These are some common mistakes one can tend to make while setting up a company in the UAE. Keeping clear on these aspects can be an effective strategy to avoid these mistakes. Check these boxes to establish a company in tune with the laws of the land. Being aware of these factors can go a long way in getting started on your right foot with your UAE company.