4 Common Challenges Entrepreneurs Face in UAE
When you have worked or resided in the UAE, then you'd be amazed finding the accelerated development of the region. The United Arab Emirates is obviously in the limelight in the advertising because of its groundbreaking advancements, new startups, reforming international investment guidelines and corporate platform. UAE is continually surpassing the prospects of the prevailing and anticipated buyers and entrepreneurs using its next level advancement, development, and progress.
Although many entrepreneurial enterprises find some factors really difficult to manage. The wish to prosper in the competitive market of the UAE, you must understand the share of problems that may come across. These issues can be defeated through brainstorming and effective planning provided by experts of Capital International Group. We've shown all the five major difficulties that business owners may face.
Company ownership
When you set up an onshore company or LLC in UAE, you are obliged to have an Emirati as a partner. Also, norms also show that investor can only just have a possession of 49% whereas 51% stakes are upheld by the UAE national. Entrepreneur do think it’s tedious to count on and trust someone. Nevertheless, you could have 100% exclusive possession in the free area, or by establishing an LLC beyond your free zone under industrial or commercial or commercial area.
Obligation of Having A Business Partner
As stated above, the responsibility of having an Emirati partner is supposedly the largest hurdle. There are just 3 ways of forming an organization in the UAE, which includes:
• Acquiring professional service license
• Establishing business in free zones
• Forming LLC
For example, if you are deciding on a PSL or wished to form an LLC, then you must have a local partner to enjoy 100% foreign possession and capital repatriation. The same rule does apply to free zone, as you should not deal with the neighbourhood UAE market without a distributor or service agent.
VAT Application
Most of us are relishing the tax-free business environment of the UAE, that provides matchless pro-business advantages to the organization world. This is actually the biggest reason that tuned UAE into the spot for new business owners. However, since the decision of the Value Added Tax, things have changed. The announcement of VAT from January 1st, 2018 has put the existing shareholders and business people in distress about their business design, bookkeeping, auditing and conformity requirements that they can be destined to meet. Strict legal and conformity framework has recently created uncertainties within the marketplace.
Management of The Revenue
Revenue management is essential in UAE. In business itself, combined with the variety of opportunities arrives various risk factors too. This is based with the Connection of Chartered Certified Accountants of Dubai, over 82% of the new endeavours fail scheduled to poor cash flow and money management. While establishing your business in UAE, you can avail the possibility to obtain the loan from various financial institutions and banking institutions. This has to ensure that your original capital requirements and business installation are effectively been able and implemented.