Common Challenges in Starting A Business In UAE

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Common Challenges in Starting A Business In UAE
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AN OVERVIEW

• The United Arab Emirates or UAE is one of the
  best destinations for company formation across
  the world. This country is popular because of its
  business-friendly environment, straightforward
  legal framework, favorable tax structure, and
  more.
• Certainly, there are many advantages of setting a
  business in the UAE. However, there are some set
  of problems that you need to face while company
  formation in UAE Free zones.

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Lets dive into some of the most common
challenges that you may face while company
formation in UAE Free zones

• UAE Company Ownership
• Finding a Local Sponsor
• Implications of VAT
• Managing Revenue

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• UAE Company Ownership

If an individual want to set up a company in UAE,
he requires a local sponsor. This implies that an
individual has only 51 percent ownership of its
company. Well, many business owners accept this
criterion but its not easy to trust and rely on
others for partnership.
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• Finding a Local Sponsor

Well, finding a trustworthy sponsor is one of the
biggest challenges while company formation in UAE
Free zones. But, in order to set up your
business in UAE, you need to find a local sponsor.
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• Implications of VAT

Registering VAT and going further is another
major challenge to set up your business in UAE.
However, hiring a professional business
consulting company can be the best move for your
business.
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• Managing Revenue

Clearly, the United Arab Emirates provides many
opportunities to run your business successfully.
According to a report by the association of
charted certified accountants, 82 percent of the
businesses fail due to poor cash flow management.
If you want to grow your business in the United
Arab Emirates or UAE, then you should focus on
managing the cash flow of your organization.
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