Startup Do's and Don'ts in UAE - SPC Free Zone

Startup Do’s and Don’ts in UAE

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A growing number of entrepreneurs appreciate UAE and are considering it to be the best option to set up operations. UAE has become a regional economic hub and one of the primary centers of international business. With its dynamic and constantly developing cities, in which hundreds of nationalities live, acts as a part of a link between the West and the East. Convenient transportation accessibility, cutting-edge infrastructure and an enormous selection of exhibition and conference venues – all these make cities such as Sharjah a perfect venue for exhibitions and conferences.

Business setup in Dubai or Company formation in Sharjah may seem like a big challenge when looking at these cities as a foreign land. You might not know the formalities involved in the registration of a company, attaining a license and employing the right staff. However, UAE has ideal conditions when it comes to doing business; this contributes to a lot of overseas investors, a huge influx of tourists and a wide array of features that Dubai is known for.

Recently, the UAE’s economic strength has earned a reputation of being considered as a sheltered place for investments and for startups to launch. So, let’s look at some of the dos and don’ts you need to be careful about, before starting on your own.

Dos in business startup

Choose a local sponsor, a UAE national for local business startup

If you really want to start a business to properly tap into the potential of the UAE, then you need a locally registered LLC business. A UAE national should be taken as a 51% partner who is called a local ‘sponsor’. A local company offers the freedom to locate a business anywhere in the country. For a business startup in Dubai, this is a boon because it gives you the best choice of locations to suit your budget.

Go with a Free Zone if you wish to own your business fully

Generally, free zones offer three great benefits

  • 100% ownership
  • Speedy startup
  • Duty-free customs boundary

Select a suitable location

Another significant step in planning a business startup is to determine the most appropriate location for the business. Starting a profit-based enterprise in the city wouldn’t do you much good despite the growing economy if your customers or clients are unable to reach you. If you are planning a free zone company then you must decide based on distance, costs, and if it is appropriate for your offering, business model, and trade requirements.

Confirm your visa eligibility

For a business startup in the UAE, every employee, including the owner will require a work visa. Each business license is allocated a specific number of visas and that number is determined by multiple factors and will be important in deciding how and where you setup your business. Criteria’s such as the size of the office, type of the business, the category of the employee, or the investor are factors to consider.

Don’ts in business start-up

Do not register your company in without confirming all details

Often the available information for a free zone gives a wide & excellent choice of offices. However, the actual availability keeps changing. A business startup normally looks for the most economical option. It is probable that when you go to register your company you may find that only certain office sizes are available. This will throw your budget into disarray so always be prepared.

Do not rely only on published information

Before you finalize plans for your business startup, it is wise to confirm the validity of the published information. Rules keep changing in free zones and also in the local Department of Economic Development for business registration. Do not go ahead until you have established the facts through a business set up consultant or by actually communicating with the relevant authority.

Do not pick a license category blindly

Business setup in the UAE and its primary cities of Dubai and Sharjah welcome all kinds of businesses. As businesses grow, they tend to evolve as well, which is why it’s crucial to pick the right license category when setting up your business. Always confirm whether your planned license category allows you all the activities that will be likely in the business model you are planning. Do not pick a license category that is too narrow.

Do not open a bank account without double-checking all the charges

Bank’s levy varying charges. For a business startup, these can amount to a significant sum for a bank-dependent operation. Always check & confirm the requirements and charges beforehand. Do not choose a bank based on only name & reputation.


If you are planning to start a business in the UAE, then seek qualified help before getting started. Employing a business advisory firm to assist with your business startup procedures may be your best option. These consultants will not only hold your hand right through the setup process but will also register the company for you. They assist with opening your bank account, arranging for an auditor, renewals and offer you nominee services as well.

At SPC Free Zone, we offer a team of experts to plan out your company registration from scratch — this includes the strategies you need to follow in order to effortlessly set up your business, itemizing potential costs, proposing licensing and location options, suggesting solutions for potential business hurdles, and so on. Call 800 77239 or visit our website to schedule a consultation with one of our Business Setup Advisors today!


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