Not every freelance business person gets it right when initially setting up their business in Dubai. As the country runs on strict policies and protocols, it is quite natural to forego some of the important regulations and then get into trouble later on. To help your Dubai Business Setup to function smoothly, we have jotted down the most common mistakes you should avoid.
- Believing in Any Published Information
The internet is loaded with various sites claiming to provide authentic information on the rules and regulations for setting up a freelancing business in Dubai. But, not every piece of printed information is authentic. In many cases, people only end up writing their opinions and not the actual facts.
The regulations continuously change and you need to rely only on authentic sites that regularly update their information. The regulations for Freezones change or shift regularly. It is best to inquire about business consultants before you set out to set up your business to avoid any pitfalls later.
- Missing out on Important Documents to Open a Bank Account
It may take a few days to register your business in the UAE, but up to 30 days to successfully open a bank account. If you miss out on important documents required to open up a bank account, the process will get further delayed and you will have to wait for a month more to go fully operational. These issues might escalate your business losses and costs even before you start.
- Doing Businesses Not Permitted in your License
Engaging in business activities that are not mentioned or permitted in your license can account for forgery and may call for the cancellation of your license. With each type of business, you will need a corresponding license. Performing a different business under a different license may warrant an arrest. So, check if you have chosen the wrong license. It is always better to choose a wider license category that allows a wide range of businesses.
Most freelancers opt for a diverse freelancing business license to be able to add more to their services as and when they grow. There are three basic licensed categories – commercial licenses covering all kinds of trading businesses, industrial licenses enabling all kinds of industrial or manufacturing activities, and professional licenses covering various professions and services.
- Wrong Business Jurisdiction
A company can be formed on the mainland, offshore, or in the Freezone as per law. The Freezone licenses are offered by the relevant Freezone authorities only, while mainland business licenses are offered by the Department of Economic Development. Offshore businesses can acquire licenses from maritime authorities. There are several jurisdictions in the UAE, each allotted a specific set of authority to allow specific businesses. If you choose the wrong option, you may be barred from operating.
- Using Sponsorship without a Written Notarised Legal Contract
If you have a sponsor whether local or foreign, you need a written agreement and present it to the authorities citing the terms of shared understanding on the ways of your work and funding. The contract should be signed by both parties to avoid any issues later on.
If you avoid all these problems and set off to set up your freelance business, it can be a good start. You can get all the information to start your freelancing business on Emirabiz.