Common mistakes that businesses in Dubai are unaware of!
Dubai is indeed an eminent business destination due to its investor-friendly environment. The success of these businesses solely depends on the right decisions and choices made. Many aim to achieve prosperity, but there are a number of companies that fail to tap true success due to some common mistakes they are unaware of.
1- Incorrect License
Opting for a business license that does not relate or sync with your business activity is one of the common mistakes that businessmen commit. There are more than 2000 business activities in UAE, each of which requires a correlating license.
Around one in three companies err on their trade licenses. These errors arise from setting up the company incorrectly, unable to comprehend the changing regulation or not apprehending fully the requirements of your business.
These mistakes can prove to be quite expensive, with the average cost of correcting such errors being around AED 10,000.
2- Business bank account
The registration of a company in Dubai is done within a matter of a few business days. What takes time is, opening a bank account for business in Dubai. On average, it takes around 10 business days for this process depending upon the nature of the business and profile of the shareholders.
Therefore, if one does not align all the correct documents, there is a chance of refusal of bank account application. This can certainly waste your precious time and slow down your business processes.
The common mistake that companies commit is that they only focus on applying for business account with only one bank. It is advised to at least apply in 2-3 banks in Dubai, so time could be saved in case one of the banks rejects the application.
In case of application refusal, banks in Dubai do not disclose the reason for rejection, due to internal policies of banks.
A notable aspect is without a bank account in Dubai, the company cannot function, therefore one can risk losing all the time and money invested in his/her company.
3- Incorrect Jurisdiction
Another common mistake is selecting the wrong jurisdiction for your business activity. For specific business activity, there are corresponding business jurisdictions. Across the Emirates, there are more than 50 independent jurisdictions, with each having specific attributes for various businesses, for local business each of the emirates has its own licensing authorities.
If the features of the chosen jurisdiction do not synchronize with your business requirements, you cannot carry on with your business activity. Such an error could cost you up to millions.
4- Ignoring registration of Intellectual Property
Intellectual Property refers to inventions and creations of a respective individual/company and mainly includes four types :
In today’s economy, intellectual property accounts for one of the most valued intangible assets of an organization in Dubai. Registration of such property gives the ability to an owner to possibly exclude competitors from the market as well as secure it’s legal rights of intellect.
Investors and entrepreneurs are so concentrated on business development that they often forget to register their Intellectual Property; This leads the property to be unclaimed and unowned, allowing the competitors to expropriate without much difficulty.
One such popular example is that when a company hires web developers and does not ensure any security that the business will own the developed product on completion.
Platforms to Flourish Your Business
There are numerous inter-disciplinary networks which devote themselves to increase the fortune of your business or entity. These organizations ensure to provide the finest solutions for your business to achieve astounding results.