If you’re looking for a freezone company in Dubai, you may be wondering whether there are any legal pitfalls to avoid. The UAE is comprised of seven Emirate states and federal laws. In addition to the federal laws, each emirate also has local laws governing business activities. As a result, there are more than forty-five “free zones” in the UAE, each with its own rules and regulations. Nevertheless, all companies registered in the UAE must abide by the Federal Laws, the Civil Code, and relevant banking and financial markets legislation. Read below some common mistakes we make when setting up the company in Dubai free zone.
Lack of written agreements:
Most documents from outside the UAE need to be legalized or notarized and must also have a certified Arabic translation. These documents will need to be submitted to the relevant authorities, but they are not required for free zone license applications. Nevertheless, it is always advisable to seek legal advice before making any changes to your company’s business documents. One of the biggest mistakes that entrepreneurs make when setting up a company in the Dubai free zone is the lack of written agreements.
Lack of business license:
If you’re attempting to establish a company in Dubai free zone, you need to make sure that you’re familiar with the rules. Free zones are restricted to conducting business within the boundaries of their respective areas, and there are several hurdles to overcome. Here are some of the most common problems that new companies may face. A lack of a business license can prevent your company from operating outside the free zone, and you should be aware of your rights before proceeding.
Lack of Intellectual Property:
While it may be easier to start a business as an official brand in Dubai or another FDI location, start-ups with growth potential face several challenges when it comes to intellectual property (IP) protection. In addition to ensuring the legality of your business, it is important to protect your intellectual property through the filing of trademark and patent applications. While each country has different laws regarding intellectual property protection, the UAE has implemented several rules and regulations that protect your company’s rights to your ideas.
Lack of proper action plan:
A lack of an effective action plan is one of the main reasons why most people fail to register their companies in the UAE free zones. This is because most companies in these free zones are related to imports and re-exports. This means that they do not require any external authority approval when issuing licenses.