The United Arab Emirates, currently being one of the most developed Gulf and Arab states, is a dynamic country that positions itself on the international stage as an attractive jurisdiction for business. However, the process of a company setup in the UAE has its own specifics that can effect the overall success of a business.
This article outlines the most common problems faced by entrepreneurs in the UAE and provides practical recommendations for minimizing potential business risks.
In the UAE, three main jurisdictions for opening a business are allowed: free zone, mainland, and offshore. After exploring all the options for opening a business, many entrepreneurs choose to register a company in a free zone. This is not surprising, considering that free zone companies enjoy a certain legislative autonomy due to the specific nature of free zones. There are more than 40 free zones in the Emirates, 20 of which are located in Dubai (more information about free zones can be found on the Ministry of Economy website in Free Zones section).
Thus, there are signi...