Everyone says that starting up a business in UAE is much easier than anywhere else, especially the countries of the Middle East and all over MENA region. The World Bank’s report of Ease of Doing Business ranked the nation as 31st.
There are several free zones, no taxes, excellent infrastructure, strategic location and low import duties offering a favorable environment as compare to the neighbors of the UAE such as Qatar, Bahrain, and Saudi Arabia. For an example, it only takes hardly six steps and 8 days to starting a company in Dubai – Amadlaw feel pride in assisting several entrepreneurs in their dream venture coming from worldwide areas.
Now that we have seen the benefits, nobody discusses the hurdles attached with the procedures. Assessing the top challenges faced by companies recently start up their businesses, we have listed down the factors that can stall your steps and issues you can face.
Big investment is required
From mandatory office space to paid-up capital requirements and trade license fees, the new businessman needs to set aside at least $10,000 in annual costs which may vary according to the type of their company. It is hard to decide if one should expend that much amount into this market as a fresh entrepreneur.
Operational finance become hectic
Personal resources are used by many companies and fresh start-ups. In some cases, loans have been taken from family or friends to get their business on track. The major reason behind this is the scarcity in the bank loans offered by the country, especially for a start-up business. SMEs face huge reluctance and challenges in the initial years as the bank ask for minimum Dh2 million turnovers annually. If that much turnover would have been possible, entrepreneurs would get money from somewhere else instead of banks.
Being on top of corporate evangelist
Being the smartest country on the globe, UAE infrastructure and internet penetrations make it ideal for start up. But still, the businesses based on social media face hurdles and difficulties during licensing and incorporation stages.
Talent is hard to find
The conventional location of Dubai and the UAE act as a hub for good connectivity and three continents with the rest of the expats making it home from nearly 200 countries. Still, finding true talent and right team is quite difficult. There are very few people who believe in your vision and strive to achieve it.
Source: amadlaw.com