Do you need corporate consulting services in the United Arab Emirates? Small and medium-sized businesses planning to start a business in the UAE can benefit greatly from the expert guidance of UAE-based business consultants.
Think of it this way. Suppose you’re accustomed to driving on the right-hand side of the road, but you must work in Japan, where people drive on the left-hand side.
You should be able to train yourself to drive on the left side of the road, but that will take time and hours of practice. Thus, wouldn’t hiring a local driver be better and safer, at least initially? This will help prevent accidents – maybe even fatal ones.
Working with a UAE business consultant when you set up your UAE corporation is the wise thing to do to avoid potentially costly setup mistakes. Even if you are a seasoned entrepreneur with years of company formation experience, the unknown (unfamiliar country, rules and regulations) can always throw a monkey wrench into the works. Even the most minor thing can frustrate your plans and cause them to fail.
When do you need corporate consulting services in the UAE? You can work with a business consultant anytime during your company formation process. However, corporate consulting is particularly crucial during business incorporation, for risk management, during corporate restructuring, and when seeking government approvals.
1. Business Incorporation
Business incorporation is the formal process of setting up a company as a distinct legal entity, separate from its owners. Done right, it can shield a company’s owners from legal and financial consequences in case of business failure.
Business incorporation entails:
- Registering your business under a specific legal format
- Registering directors, business addresses and share allocations
- Obtaining the required licenses and ensuring legal compliance
- Submitting the necessary paperwork to relevant authorities
In the UAE, a business can take one of many legal forms:
- Sole Establishment
- General Partnership
- Limited Partnership
- Civil Company
- Limited Liability Company (LLC)
- Private Joint Stock Company (PrJSC)
- Public Joint Stock Company (PJSC)
- Holding Company
- Local Company Branch
- GCC Company Branch
- Foreign Company Branch
- Free Zone Company Branch
The variety of options can make settling on a particular form daunting. Your business consulting services can help clarify the nature of each one in the UAE context and help you choose the best legal structure given your industry and specific business activities.
Through your business consultant’s help, you can tailor your company’s legal structure and corporate governance for optimal efficiency and maximum profits. Your business consultant can help you seamlessly switch from individual local sponsors to corporate nominees and reduce or eliminate your local sponsorship fees.
Incorporating a business in the UAE offers many advantages, including 100% foreign ownership, low corporate income tax, low customs duties, and zero personal income taxes. The ease of business setup in the UAE is also legendary.
That said, the UAE has stringent regulations. For instance, it is a leading economy worldwide when it comes to enforcing contracts.
Therefore, you should be careful about getting things right the first time, with the help of a business consultant, instead of dealing with hefty fines and penalties later on.
2. Corporate Risk Management
Every business, irrespective of its size or domain, faces risks, and doing business in an unfamiliar territory can exacerbate risks. Identifying your business risks before they manifest into issues and implementing measures to prevent them or mitigate their impact is a critical business skill.
Corporate risk management is a methodical approach that:
- Identifies potential risks
- Assesses and analyzes potential risks
- Evaluates the magnitude and impact of these risks
- Estimates the likelihood of each risk
- Prioritizes risks according to their likelihood and potential impact
- Formulates strategies to address, mitigate or eliminate risks
Information technology (IT) security vulnerabilities, economic downturns, and personnel challenges are examples of business risks. Problems arising from non-compliance are also a risk.
You can’t eliminate or even predict all risks. Even so, a structured corporate risk management approach can help you manage and minimize the adverse impact of business risks and safeguard your business longevity, reputation and financial health.
3. Corporate Restructuring
If your business has hit a roadblock or needs to pivot, corporate restructuring may be just what you need to accomplish the following:
- Improve operational efficiency and competitiveness
- Refine focus, possibly targeting new markets or products
- Resolve financial constraints or challenges
- Prepare a business for a merger, takeover or acquisition
Your company must remain agile and adaptive in the UAE’s competitive market. Corporate restructuring, when done correctly, is a proactive strategy that will redefine your business trajectory.
4. Government Approval Liaison
In the UAE, navigating government procedures is integral to running a business. These protocols range from obtaining licenses and permits to requesting visas for yourself and your key employees. Understanding these protocols and ensuring timely compliance are critical to avoiding problems and minimizing costs.
Significance of Government Approvals
To operate effectively and legally within the UAE, businesses must naturally adhere to the laws and regulations of the country and the concerned emirate. This can involve acquiring permits for specific activities, hiring overseas talent or obtaining necessary licenses.
Some business activities require additional government permits. Driving schools need approval from the Ministry of Interior. Setting up a law firm? You require approval from the Ministry of Justice.
Mobile virtual network operators need a permit from the Telecommunications and Digital Government Regulatory Authority, travel agencies from the Executive Council, and contractors from the local municipal department.
If you’re planning to import or trade in single-origin coffee, for example, do you need extra government approval or will applying for a trade license from the emirate’s department of economic development suffice? A UAE business consultant would know which government departments or agencies you’ll need to ask for approval given your business activity.
Navigating the Approval Process
Not only do you need to know which government authority to apply to for a permit, but you must also understand the system and nuances of government approval processes. Mistakes in the application process, even relatively minor ones, can lead to time-consuming and costly delays.
Work with a business consultant with the right expertise and connections. That can make a notable difference in the speed and efficiency of obtaining government approvals.
Corporate Consulting in the UAE
Starting and managing a business in the UAE represent many opportunities, but it’s not without challenges. Navigate them adeptly, avoid and mitigate risks, and maximize your efficiency with some help from business consultants.
