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How Consulting can Help You Avoid Mistakes in Company Registration for new markets

Expanding into a new market offers exciting opportunities for any business, but it also comes with its own set of challenges. From navigating the business registration process to obtaining residency or securing visas for employees, there’s a lot to consider. 

That’s where business consultants can make a difference. In this article, we’ll explore the advantages of working with business consulting services when planning to expand into new markets. 

The Role of Consulting in Expanding Into New Markets

Registering a company in a new jurisdiction can be quite challenging. If you choose to handle this process alone, you’ll need to navigate through ever-changing legal requirements, sift through information from various government websites, and even seek advice from online forums to find the right way to fill in this form or that. It’s a lot to handle, but is it the best path forward? 

For many entrepreneurs, the answer is a no. That’s why they opt to bring consultants on board. A consultant is someone who specializes in helping the company pass the registration process, ensuring compliance with local laws. Consultants can streamline the registration process and help you avoid common mistakes. Imagine that one improperly filled in form field might result in you having to submit the entire application again? A consultant can not only save valuable time but also reduce the budget required to kickstart operations.

Take tax regulations, for instance. Some jurisdictions offer incentives for foreign investors. This can greatly influence your planning — like deciding where to establish an office (in the UAE, for example, location matters, and your company’s address plays a role in eligibility for tax benefits). The problem is — there is a lot of misleading information. Sometimes even government websites can’t keep up with new laws that come into effect, and It’s easy to make a mistake without realizing it. Without professional guidance, companies may risk missing out on benefits or even face penalties for non-compliance.

The paperwork and documentation required for company registration poses another challenge. It’s extensive and complex. Each jurisdiction has its own specific set of required documents: articles of incorporation, proof of address, detailed business plans — the list goes on and on. All of these documents must be meticulously prepared and often translated. Errors in this process can lead to application rejections and delay a business’s entry into the market. A consultant, with experience in submitting thousands of such documents, can conduct a review and help you better prepare the application, ensuring a smooth acceptance.

Unique Aspects of Starting a Business in the UAE 

The UAE offers incredible opportunities for companies across various industries such as retail, metaverses, blockchain, and construction. Economy of the Emirates is rapidly growing, and the government has implemented initiatives to support both international startups and enterprises. However, the UAE market is also one of the most challenging to enter. There are many regional specifics to navigate. Let’s cover some of the main ones.

When you first start learning about the business regulations in the UAE, it’s easy to feel a bit overwhelmed. Take the distinctions between Free Zones and the Mainland, for instance. Free Zones are economic areas established by the UAE government to attract foreign entrepreneurs, offering simplified licensing, regulations, and tax incentives.

Think of Free Zones as countries within a country. There are over 45 Free Zones in the UAE, and each has its own regulatory framework. For example, the International Financial Center (DIFC) has its own contract law, company formation law, real estate rules, and even its own arbitration center. 

Registering a business in a Free Zone is easier, but it comes with restrictions. For example, if you register a company in one emirate (like Dubai) and plan to operate in another (like Abu Dhabi), you’ll need to open a branch, subsidiary, or obtain a special license. While this isn’t an issue for solely international operations (like SaaS companies), if you aim to tap into the broader UAE market, registering the company in the Mainland becomes necessary — a process that is notably more challenging and time-consuming.

Sometimes, challenges await where you wouldn’t expect them. For example, opening a corporate bank account — a routine operation in Europe or the US — in the UAE becomes one of the most challenging aspects of business setup. The reason lies in the stringent measures put in place to combat money laundering and terrorism financing.

Banks in the UAE are oriented to work with residents. As a non-resident, prepare to provide detailed information about the company’s ownership structure, business activities, and sources of funds, and to submit a large deposit. The solution is simple but not intuitive — it’s easier to obtain residency first and then apply for an account. This is the type of complexity where having a business consultant is helpful for company registration.

A business consultant can help you choose between a Free Zone or Mainland setup (and identify the most suitable Free Zone for your business context), select the rich economic activity (from a list of 2000, and you must choose precisely) locate an office space, open a bank account, acquire residency, and facilitate visa applications for critical employees.

UPPERCASE Helped 4000+ Companies Relocate to the UAE

The UAE is one of the most sought-after destinations among entrepreneurs, which created a large market for business consulting. Today, there are over 2,000 business consulting firms working in the UAE. But like in every competitive landscape, not all of them are equal, so it’s important to choose a partner you can trust.

UPPERCASE is a large consulting group with branches in legal, accounting, and business solutions. One of their specializations is helping clients worldwide to open or relocate a company to the UAE, and they’ve been successfully providing company registration assistance for over 15 years. UPPERCASE’s team can guide you through company registration, bank account opening, and visa or residency applications. 

UPPERCASE is deeply rooted in traditional business consulting. The company has a team of 100+ industry experts — many of who are based out of Dubai — from retail, real estate, IT, construction, manufacturing, investment, and other verticals. But UPPERCASE’s services extend beyond traditional consultancy. They are developing digital solutions to translate the 15 years of consulting expertise into an accessible, digital format.

Specifically for business registration in the UAE, UPPERCASE has launched a semi-automated platform called UPPERSETUP.  It’s an online service that uses AI-algorithms and UPPERCASE’s expertise to learn about your business and  provide step-by-step registration guidance.

How UPPERCASE Helped Clients With Setup in the UAE: 3 Real Cases

Let’s take a look at three real-life cases to illustrate how UPPERCASE consultants have helped clients set up businesses in the UAE and overcome the challenges involved. (Note that UPPERCASE’s clients’ identities are withheld for confidentiality).

 

Case 1: One of The World’s Largest Software Developers

One of the world’s largest international technology and software development companies approached UPPERCASE CORPORATE to help launch the company’s IT product in the UAE market.

The software, already successfully used in the CIS (Commonwealth of Independent States) region for the construction industry, needed an analog under a different name for the international market.

The UPPERCASE CORPORATE team assisted the company in obtaining resident status at the DIFC Innovation Hub – the largest financial center in MEASA (Middle East, Africa, and South Asia) and one of the top 10 financial centers globally, according to the Global Financial Centres Index.

The main challenge was that the DIFC Innovation Hub has strict criteria for selecting residents; companies must prove their products’ innovation to a special committee.

UPPERCASE CORPORATE experts helped the client draft the application correctly, prepare presentations, and provide recommendations on key points to emphasize. As a result, the client achieved its objective and was granted residency at the DIFC.

Case 2: One of The top 35 Social Networks by Popularity

One of the world’s top 35 most popular social networks by number of users approached UPPERCASE LEGAL. The company needed to create an entirely new, independent IT company from scratch.

While the client had accumulated intellectual capital and resources, it could not act on its own behalf for various reasons.

UPPER CASE LEGAL lawyers set up the necessary infrastructure from the ground up, prepared all the required corporate documents, drafted contracts, and advised on labor law issues. They also handled employee relocation and all visa and migration matters.

As a result of these services, the company successfully launched its business in the UAE under a new brand, with all activities carried out in the strictest confidentiality.

Case 3: A leading Luxury Real Estate Agency

A leading luxury real estate agency with offices in London and Dubai approached UPPERCASE GROUP for assistance in establishing a presence in the MENA region.

The founders faced challenges not only in registering the company but also in properly building relationships with local regulators and key players in the real estate market.

UPPERCASE experts ensured the companies were registered and necessary licenses were obtained in Dubai and Abu Dhabi in the shortest possible time frame. They accompanied the client in negotiations with key regulators and facilitated introductions to real estate players.

Additionally, they resolved numerous issues related to opening the company’s office, processing employee visas, drafting employment and service contracts, as well as accounting and tax matters.

Within a short time of opening, the company ranked in the top 10 of Emaar and DAMAC Properties sales for 2022, setting a high bar in the market for client service and understanding of the local luxury real estate landscape.


Conclusions

Business consultants guide companies through the entire process of setting up in the UAE: helping to decide whether to locate in a free zone or on the mainland, obtaining licenses, establishing good relations with government agencies, and introducing key players and partners, to name a few.

But it’s important to work with the right professional. Many businesses are flocking to the UAE, creating a large market for business consultants — and this creates a range in quality of services. UPPERCASE is one of the leading consulting groups in the UAE today. Their team of over 100+ industry-specific experts is ready to assist you with your business needs for UAE relocation and beyond.

Uppercase Website: https://uppercase.group/

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