Starting a business anywhere, but especially in a foreign country, should be planned appropriately. Unfortunately, when I go to new places, I see many enterprises that haven’t done their homework and haven’t done any market research or studied the local culture. As a result, a more expensive and time-consuming setup or the need to clean up the mess later is often the result.
Follow These Tips While Starting The New Business in Abu Dhabi
Time spent in advance on market research, strategy development, and networking can save you money in the long run because you will be able to make informed decisions about growing your business into the UAE markets with greater confidence.
Many organizations expand their company to the United Arab Emirates without doing any study or due diligence. They are therefore obliged to make costly and time-consuming improvements or suffer the consequences of their poor decisions.
Research About The Country
Being familiar with the UAE will help you in business setup in Abu Dhabi or Dubai. To better understand the UAE’s culture, governmental structure, economic status, and business climate, among other things. If you’ve never been to Abu Dhabi or Dubai, you might be startled to learn that they’re incredibly different and that doing business in each city is pretty different as well.
Check Whether the Market For Your Products and Services Exists or Not
The answer to this issue may seem apparent, but just because it has worked in other markets does not indicate it will work in Abu Dhabi or the UAE in general. In some cases, it may need a little tweaking to fit the local market conditions. Determining ways to differentiate yourself from your competition is also essential if there is already a market.
Learn About the Laws
To establish a good legal structure for your firm, it is essential to understand the business laws. What will corporate documents be necessary to start your business? What format do you require for these documents? Upon arrival in the UAE, stamp these documents at the Ministry of Foreign Affairs in either Dubai or Abu Dhabi. Being aware of the local legislation will also help you to be compliant once you start hiring employees.
Choose the Business Structure and Jurisdiction
Many sales consultants in the UAE are trying to sell you the lowest business setup they can get you to invest in. To succeed in business in the UAE, you must know your goals and who your target market is before you ever start. These factors will help you identify which jurisdiction is the fittest for your business’s license application process. Examine all of the solutions that match your needs because there will be many elements to consider, which could affect the cost, the long-term plan, and so forth
Research Funding Options
Investigate funding options if your company isn’t in the position to fund its growth to the UAE on its own. As a result, many governments provide grants and other forms of assistance to help their domestic enterprises expand into overseas markets. As well as trade counselors, they’ll likely give you training as well. A third-party investor is also an option, such as angel investors who do not have a repayment schedule and may be interested in an entire active equity stake when the business matures. Venture capital and private equity investors will likely take an active role in the industry and possibly a buyout later.
In addition to health insurance, which is required, the employer’s responsibility is to make these arrangements. The company must then pay the salaries regularly using a particular payroll system called WPS (Wage Protection System). If an employee leaves their employment after working for at least one year, they can receive a gratuity payout.
Have Corporate Bank Account
Due diligence procedures are making opening corporate bank accounts more difficult and time-consuming. Start thinking about which bank your organization might use as soon as possible. For example, is there an international bank that your company operates around the world? Another option is to use a local bank. It’s essential to know the fees, the minimum balances, and other restrictions before creating a bank account. More preparation done in advance means a faster account opening when you need it.
Have Good Networking
In the United Arab Emirates, networking possibilities abound. Since the market is a transient one, individuals come and leave all the time; it’s essential for them to network when they arrive and to continue networking once they’ve been there. In addition, there are two benefits to networking: it allows you to meet other business people and grow your network; you never know when you’ll need someone’s aid or whether you’ll be able to assist someone else.
Ideally, you’ll also be able to identify suitable collaborators. In addition, networking is a terrific method to stay abreast of what’s going on in the market. Businesses and industry associations abound.
Learn About The Business Culture and Etiquettes
It will be appreciated by your Emirati and Arab hosts if you respect their culture and make an attempt to learn their language.
Business setup in UAE, in Abu Dhabi, or Dubai must obtain a business license to operate. Take your time and don’t make a rash decision. Instead, decide to spend some time upfront researching all of the alternatives available to you based on what you want to get out of this and how you want to operate in the United Arab Emirates (UAE).