Common Mistakes When Starting a Business in the UAE

Despite the ease and benefits of setting up a business in the UAE, many entrepreneurs make mistakes that lead to delays, penalties, or even company closure. This article outlines the most common errors and how to avoid them

Common Mistakes

1. Choosing the wrong jurisdiction (Mainland, Free Zone, Offshore)E.g., selecting a zone that restricts your activity or limits bank account access.

2. Incorrect license or activity type selectionMay result in penalties or limited operational rights.

3. Issues with the company nameUsing restricted terms or unbrandable names.

4. No clear business plan or proof of fundsCauses delays or rejection in bank account opening and KYC.

5. Ignoring compliance (accounting, tax, ESR, etc.)Can lead to serious fines and even blacklisting.

6. DIY setup without expert supportLeads to document errors, misaligned setup, and avoidable delays.

How to Avoid These Mistakes

Consult licensed experts

Get tailored advice on jurisdiction and activity

Work with providers familiar with UAE compliance

Plan your financial and tax strategy early

Want to Avoid Costly Mistakes?

Contact BalancePro — we’ll evaluate your situation and guide you to a smooth launch