Whether your firm is already established in another country or you’re just beginning your business journey in Dubai, both instances will classify as ‘start-ups’ in this emerging market. Dubai is rapidly progressing as a global commerce center, yet understanding certain factors can protect you from potential business pitfalls. Foremostly, a successful entrepreneur must contemplate costs. Here’s a few tips for managing start-up expenses in Dubai.
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GOVERNMENT-STIPULATED FINANCIAL OBLIGATIONS
As part of setting up a business in Dubai, the Ministry of Commerce necessitates a financial guarantee against potential liabilities. This sum ranges typically between £6,500 and £33,500 and it’s a demonstration to the authorities that you’ve a substantial investment which can act as a safety net for any potential losses. You can’t bypass this obligatory expense – it’s paramount to incorporate it in your budgeting. If you’re aiming for cost efficiency, this is a constant expenditure that you must account for.
EMPLOYING A LOCAL SPONSOR
This is where things could become complicated. The government necessitates the involvement of a local sponsor in your business. If you don’t choose your sponsor wisely, you may find yourself facing steep costs. Ensure you thoroughly vet your potential sponsor, especially if the connection was initiated online. Handing your investment over to a questionable personality could result in significant financial loss, either through untrustworthy dealings or misguidance.
MINIMIZING OPERATING EXPENSES
Seeking means to minimize operating costs is a point worth your consideration. Subletting serviced office space in Dubai is a practical solution. Such offices offer shared facilities such as internet, cleaning services, security, and occasionally, a common reception area. Instead of paying for each service separately, shared expenses across multiple businesses could cut costs. These costs may either be included in your rental contract or as optional extras, either way, they could result in substantial savings.
A FINAL NOTE OF CAUTION
A key piece of advice is to invest sufficient time in understanding the local culture and customs. The cultural disparities between the UK or the US and the United Arab Emirates, for example, are considerably vast. Building business relationships without offending potential customers is essential. This is absolutely imperative as poor relationships could lead to soaring service costs or even loss of business.
Establishing a business in Dubai might sound challenging but in reality, the government is supportive of new businesses establishing and flourishing. To simplify business operations, many legal transactions can be conducted online using e-services. The task of cost management falls on you, and the tips provided here should serve as a comprehensive guide in this regard.
