Contents
Most problems with a UAE company arise at the start. These are the mistakes that occur most often.
1. Choosing a zone on price
The cheapest package can turn out to be the most expensive after renewal, and may not suit your activity. See How to Choose a Free Zone.
2. Wrong business activity on the licence
Correcting the licence activity code after registration takes longer and costs more than choosing correctly the first time.
3. Ignoring mandatory registrations
Once the licence is issued, the company has obligations to government authorities. Tax matters depend on the structure of the business and your country of residence. They are best discussed with a tax adviser.
4. Saving on the office without considering visas
A minimal office limits the number of visas and affects how banks view the company. See Do You Need an Office in Dubai.
5. Counting on a guaranteed account
The decision to open an account is made by the bank. Plan the bank before registration and do not rely on "guarantees". Read How to Open a Bank Account.
6. Incomplete document package
Errors in names, expired attestations and missing translations delay the process by weeks. See Documents for Registration.
7. No plan for the second year
Renewal of the licence, office and visas are recurring costs. Include them in the budget. See Annual Obligations of a Company.
8. Trusting "no-risk" promises
If you are promised a guaranteed result, cheap registration and an instant account all at once, be cautious.
How to avoid mistakes
- First define the business model and the market
- Then choose the jurisdiction and office type
- Cross-check against your banking strategy
- Request a full one-year cost estimate
We can help with all of this: submit a request for company formation.