Common Challenges Faced By Entrepreneurs In UAE

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Common Challenges Faced By Entrepreneurs In UAE
Presentation By Start Any Business
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Introduction
Are you thinking to set up a business in the UAE?
As we know UAE is a business hub, but there are
some common challenges faced by entrepreneurs In
UAE. Although setting up a business in the UAE is
very easy as compared to other western countries.
It only needs some practical understanding and
knowledge about the business norms and culture of
the UAE. Some processes are easy, and some are
complex to set up a business in the UAE. The
United Arab Emirates (UAE) is well-known for
having a business-friendly ambiance, a favorable
tax structure, and a simple legal framework.
Although, the UAE, like any other country, also
goes through a set of problems which potentially
results in some challenges when investing in the
country. But if you are a career-driven, devoted
person who is enthusiastic about the wider scope
and outreach this country has to provide then
ensure you build yourself up for these common
challenges that come to your path when setting up
a company in United Arab Emirates (UAE).
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Here Are The Challenges Faced By Entrepreneurs In
UAE
1. Ownership Of The Company
The overseas entity requires to share its
business ownership if it wants to set up its
operations in the United Arab Emirates (UAE). If
an individual wants to start an onshore or LLC
(Limited Liability Company) in the United Arab
Emirates (UAE) theyd compulsory need a local
sponsor. This enforces a person to have a UAE
national as a partner who shall own 51 of the
ownership. When some businessmen agree on this
criterion, it can be monotonous for others to
develop trust and reliability.
2. Finding A Local Sponsor
The Challenge for an investor is to find an
honest sponsor. When an overseas company plans to
set up a business in the United Arab Emirates
(UAE), a local sponsor or partner is a must.
Finding the best sponsor or partner relevant to
the company and is suitable can be a tough task.
Also, the local partner must have the market
knowledge, understanding of the law, and manage
the local operations.
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3. Funds To Run Operations In The UAE
Any overseas entity that needs to set up a
business in the United Arab Emirates (UAE) also
requires adequate funds to run its operations
easily. Finding a local trader can be challenging
and the overseas company must have its detailed
funds management plan set down for its long-term
services.
4. Applicability Of VAT
The United Arab Emirates (UAE) follows the
value-added tax (VAT) system, implemented by the
Gulf Cooperation Council in January 2018. VAT is
an implied tax relevant to all virtues and
services with basic food education, essentials,
and healthcare items as exemptions. The tax is
applicable at a 5 rate and is also said to have
simplified the taxation for businesses. Although,
one of the biggest challenges of doing business
in the United Arab Emirates (UAE) to get
customary VAT.
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5. Revenue Management
Revenue management is vital in United Arab
Emirates (UAE). Not only in UAE but in business,
because along with the plenty of chances comes
along several risk factors too. As per to the
Association of Chartered Certified Accountants of
Dubai, over 82 of the new enterprise fail
because of poor cash flow and funds management.
When setting up your business in United Arab
Emirates (UAE), you can avail yourself the
possibility to get a loan from several financial
institutions and banks, however, ensure that your
initial capital needs and business setup are
expertly handled and executed.
6. Challenges Associated With Real Estate
The United Arab Emirates (UAE) is renowned for
its real estate, and the business license of a
company is also related to its registered
address. This rule makes it important for an
entity to operate from a physical office,
frequently making it tough for small businesses
to enter the market. Also, the place of the
office is core to its seamless performances. The
UAE Free Zones provide overseas companies with
reasonable real estate choices. Although, local
expertise is a must to finalize the location and
size of the office space according to the visa.
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7. Challenges In Getting Work Visas And Permits
Oversea employee requirements to get a work or
residence permit to live and work in the country.
The oversea entity serving its oversea employees
to the United Arab Emirates (UAE) particularly
requirements to follow the visa criteria. The
company is also required to comply with the laws
set down by the General Directorate of Residency
and Foreigners Affairs and the Ministry of Human
Resources and Emiratisation.
8. Cultural And Communication Difficulties
The challenge regarding the culture and
communication that is needed to be addressed
considering Islamic values. Business
communication is needed to be particularly
different for men and women and the formal
directness and approach are also limited. The
Emirati culture caters as the heart and soul of
business and daily life in UAE and hence
intercultural diversity sometimes hinders.
Otherwise, Emirati people are very welcoming and
companionable.
If you are scared by any of the above-mentioned
common challenges faced by entrepreneurs in UAE,
then talk to the experts to start your business
in the United Arab Emirates (UAE).
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Contact us
ADDRESS
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Station, Bur Dubai, Dubai, United Arab Emirates
PHONE NO.
971 43233854
EMAIL
info_at_startanybusiness.ae
VISIT US
www.startanybusiness.ae