Dubai is known to be a city filled with lots of business fortunes and has open arms to both local and international investors. If you have a brilliant business idea and want to start up in Dubai, there are certain mistakes you should avoid to enable you to have a smooth business running after its incorporation.

In this blog post, we shall provide you with some tips on how to avoid some major mistakes that can be detrimental to your start-up now or in the future.

1: Choose an Appropriate Location for your Business

Dubai in a bid to encourage foreign investors has made it possible for companies set up within Dubai to enjoy certain privileges. As a start-up company, you can decide to set up your company in a free zone area as companies set up in this area enjoy tax holidays of various types. Check out our blog post on free zones and what they enjoy. Notwithstanding that the free zone comes with privileges, it is also important that you ensure that setting up your company in a free zone area will fulfill your business needs. We advise you to research these areas and if the free zone does not fulfill your needs, you can as well start up your company on the mainland or offshore. The importance of knowing the right place to set up is to help you achieve your utmost goals for your company.

2: Apply for the Right Business License

Determining your business activities and legal structure before you start your business in Dubai is important. Different business structures have a license that is peculiar to them. You have to know and understand what your business is about so you can acquire the right license for it. In the event of choosing the wrong activities or business license, you can apply for a change of license and this will cost you to lose money which can be avoided from the initial stage.

3: Prepare Crucial Paperwork for registering your company

Every formal process requires submitting documents to the appropriate body. As a foreigner especially one who wants to start up a business in Dubai, there are required documents that need to be submitted as part of the registration process. In order to save time, it is important that you check the list of requirements before you commence the process. The moment you have everything ready and intact you can begin the registration process and you are sure to spend a limited time on this process

4: Writing Contracts and Agreements:

All businesses are bound to have agreements and contracts which could be between your company and a partner, employee, supplier, and others. It is fundamental to have all your business agreements and deals written. Most new businesses set up in Dubai enter into oral agreements which in the law can not be relied upon. The key to having a successful business is to mandatory have all agreements and contracts in written form.

The significance of adhering to this tip is that it helps to avoid misunderstandings between investors and partners. Agreements and contracts in written forms also serve as concrete and visible evidence to avoid dicey situations which could result in loss of money for a start-up owner or its partners. We also advise that you indulge the service of a lawyer to draft your documents as they are vaster in the laws and regulations of Dubai to help curb these issues.


Generally, there is due process that you as an investor need to accomplish before you can begin operating your company. For some of these due processes first, you need to establish the kind of business activities you want to engage in. Secondly, you are to pick a suitable name and ensure that such a name is not in use as negligence of this can lead to you paying for damages. Lastly, we encourage you to prepare all your necessary documents and submit them to the regulatory body. Asides from knowing these tips and even more, we prompt you to seek free legal advice online or chat with a lawyer in Dubai online which elegal Consultants can offer you.

For more information about setting up a company in the Middle East or starting up a business and for all your business needs, advice, compliance and legal requirements in UK, Asia, and Africa please feel free to contact us for a free consultation. We are just a click away. We also assure you that we will tend to your requests.

We at eLegal consultants look forward to meeting you and are ready to journey with you to realize your dreams. Contact us today.

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