Getting started in a dream business destination like Dubai can be one of the greatest moves you adopt in 2023. Once you have successfully completed the business setup procedure in Dubai, it is time to make sure you are not wasting your time by failing to comply with some necessary standards and laws. Just be careful to keep up with your legal obligations.Getting the appropriate assistance is important since making common mistakes could cost your business big contracts. Setting up incorrectly will cost you a whole lot of time and money. Approaching a trustworthy business set-up solution like Al Arabiya Business Set Up can help you in this situation. Here are several warning signs that could end up ruining your business. Read on.
Mistakes with business licenses
You could lose a lot of money if your business trade licence has inaccuracies. It costs a lot of money to fix the mistakes in your trade licence, regardless of whether your company is incorporated on the mainland or in a free zone. The errors may occur for a number of reasons, such as improper company formation, failing to stay up to date on evolving rules, or failing to properly comprehend the workings and requirements of your organisation. Before submitting your application for a licence, check your activities and other requirements with the assistance of business setup specialists in Dubai.
Operating without the proper license
Make sure you have the appropriate licence for your activity when opening a business in Dubai.
A common example is the difference between a DED e-trader licence and an e-commerce licence. An e-commerce licence is designed for accepting product orders through a specific website and shipping the purchases to the consumers’ addresses. A real office space or a co-working area at a business centre is necessary for this.
Not doing yearly audits
In terms of conducting business in one of the Dubai free zones, you risk getting into problems if you don’t have your books of accounts audited. The books of accounts must be kept for at least five years, and they must be audited by audit companies that have been approved by the relevant free zone authorities. If you don’t deliver the audit report on time, the free zone authorities won’t renew your trade licence.
Choosing the appropriate bank
Entrepreneurs must look for the best banking partner when starting a business in the UAE in order to register an account and handle financial activities.Before making a decision, the business owners should also look into the initial account opening fees, account types, limits, any other restrictions, hidden or recurring fees, and any other conditions that must be met.
Failure to comply with regulations
Investors must abide by a number of transparency rules that the UAE government has implemented. Ultimate Beneficial Ownership (UBO), Economic Substance Legislation (ESR), and Anti-Money Laundering (AML) are a few of the recent obligatory regulations.
Using an outdated Trade License
Before it expires, every company in Dubai must renew its trade licence. For each of the days that the trade licence is not renewed, you will be expecting fine from the licensing body. The entity’s entire range of commercial activities will be suspended if your trade licence in Dubai is not renewed.
WE DO NOT NEED SHORT CUT
Gone are the days that witnessed a protracted and laborious process while setting up a business in Dubai.With the ongoing introduction of new initiatives by the authorities, licensing your business is no longer a tedious process. You can no longer need to take any shortcuts while establishing a business in the UAE thanks to the accurate and current guidance from legal consultants who have an in-depth understanding of the process and regulations.If you have a good business idea, Dubai will reward you with recognition and money. But if you consciously or naively disobey certain laws and standards related to the establishment of a business in Dubai, all your efforts will be for nought. A knowledgeable and seasoned business setup partner like Al Arabiya can effortlessly guide you toward your objectives. To learn more about establishing a business in the UAE, contact us.