Vigor Business Center – 5 Common Mistakes Made When Starting a Business in Dubai

Company Formation in the UAE
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Starting your own business in the UAE may be a thrilling experience! This can be thrilling as well as challenging. For multinational companies and individuals looking to start a business, the  Vigor Business Center UAE offers a wealth of prospects and options. Despite having an excellent commercial environment, tax benefits, and proper rules and regulations, new businesses unaware of the regulations can make expensive blunders that could ruin their chances of getting off the ground in the first place. These things are easily avoidable with diligent research as well as expert advice.

Here are crucial mistakes to avoid when starting a business in the UAE:

1. Not Choosing the Right Free Zone

Because each free zone is unique, you must carefully select the one you want. Most significantly, you must select a free zone to carry out your business operations. There are various Dubai free zones to choose from, as well as a distinct jurisdiction.

If the free zones do not meet your requirements, you can establish a mainland or offshore corporation. However, you will not receive the same benefits as you would in a free zone in these jurisdictions. Although selecting a jurisdiction can be difficult, you can always seek professional assistance. Just keep in mind that you should weigh all of your options before launching a business in Dubai.

2. Starting a Business While Still Bound to an Employee Contract

Many people with entrepreneurial aspirations may seek to start a firm in Dubai while still working legally and on a valid work visa. This is a breach of the employment contract as well as the law. In such instances, potential entrepreneurs must acquire written permission from their employers before starting a firm in Dubai.

3. Choosing the Wrong Type of Business According to Your Business License

Another common blunder made by many investors is choosing a business activity that does not correspond to their business license. In the UAE, there are almost 2,000 different categories of commercial activity for which you must receive a license. As a result, if you initially selected the incorrect license, you will need to modify it. The cost of such an error varies depending on the free economic zone a business is registered in, but it can set you back around $1,000.

4. A Lack of Written Contracts and Agreements

Written agreements and contracts should be used for all commercial deals and agreements with partners or other allies. Entrepreneurs should not prioritize mutual trust and verbal agreements. In the event of a legal disagreement, well-crafted and mutually approved agreements would aid investors in enforcing their rights.

5. Relying Completely on the Internet to Make Decisions

This is, without a doubt, the most crucial of them all. The internet is brimming with information about different types of businesses, opinions on the best free zones, the shortest routes to getting started, etc. Rather than wasting time exploring the vast amount of freely available data, which may confuse you, it is always better to obtain expert guidance from a professional who can guide you to the proper route. The licensing laws and regulations are constantly changing, and some of them may not even apply to you!


Gone are the days when forming a business was a lengthy and time-consuming procedure. Licensing your business is no longer a tedious or time-consuming process, thanks to the government’s ongoing stream of initiatives.

Supporting Tips:

You won’t require any shortcuts in setting up a corporation in the UAE if you have correct and up-to-date guidance from legal consultants with an in-depth understanding of the process and regulations!

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Vigor Business Center is the leading business setup company in Dubai, helping entrepreneurs and companies plant their business roots in the UAE. Get in touch with us today!