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MGMT630: BUSINESS ENTERPRISE ENVIRONMENT

Integrate information concerning new business start - ups inside the UAE
A new business start - up in any country such as UAE requires a deep inside study of the
integrated facts and figures or the data and information of all the legal and political aspects
followed by economic and environmental conditions. A new business start - up business
requires some most important or most crucial steps before entering to any business field or
sector which are as follows: -

Identifying and picking up the right business


Learning about the legal requirements of the country as per the business sector
requirement as very country has different sets of legal requirements for new business

start - ups.
Identifying the best location for starting - up the business considering the major
factors in to the account such as the taxes, legal requirements, paper work, business
feasibility and labour availability as per requirement. UAE has more than 30 free
zones to start - up business and as well as UAE Government provides some liberty in
legal transactions if the business start - up has more than 51 % of shareholders

consisting of UAE nationals.


The Legal documentation and Business Licencing applications needed to file up with
the relevant and necessary documents with supporting documents of the same such as

UAE ID card and passport copies required to submit to the licencing authorities.
As the business start - up requirement and presence of bank nearby the business start
- up location, the owner or the authorised person has to open up a bank account under

the name of the company.


The shareholders now have to obtain the licences from the different authorities to
whom they applied for it by paying the prescribed fees followed by the application for
visas for the employees.

Finally, after receiving the required number of employee visas as per the requirement
and obtaining all the legal clearances from the different departments of UAE
Government. The company has also obtained all the Licences for Business start - up
in the country before final business launch, the company or the organization can
declare its business launch in UAE

https://www.justlanded.com/english/Dubai/Dubai-Guide/Business/Starting-a-Business

Identify contemporary business issues inside UAE start - up firms


The issues that generally arises inside UAE start - up firms are divide in two different parts
such as pre - business start - up issues and post - business start - up issue.
The pre - business start - up issues are generally; related to the determination of working
conditions, profitability in the market, market growth, taxes and legal paperwork. In UAE,
the taxes related to carry on business without the involvement of UAE national sponsor is
quite high with excessive paperwork. The UAE market is consider as one of the fastest
growing economy with high market growth prospects but is limited to different forms or
types of businesses that are running and performing in the market structure. If the authorised
person for the new business start - up comes up with a new business idea, the issue arises
regarding the licencing system and insurance. As the licences are common and many at times
does tend cover the actual business working requirement and the insurance companies in
UAE does not tend to provide insurance coverage that much easily to any new business idea.
Moreover, if the business start - up is schedule to launch in Free Zone without the
sponsorship of any UAE national, the chances for insurance sanctioning almost becomes
negligible.
The post - business start - up issues inside UAE start - up firms are generally in relation with
the employee visas, availability of employees, authenticity of the sponsor and working

market acceptance of the market structure in UAE. The applications for employee visas are
easily available in UAE but it consumes a lot of time to obtain it; that is, more than 20 days
are required to obtain the recruitment and labour permission and then almost 20 more days
are in need to obtain the visas, if all the hectic and excessive paperwork is complete. UAE
denotes a business hub as a country and huge number of employees are available to serve
new business start - ups but the situation varies as per the location of business setup and
specialization required. It is because recruitment or availability of required number of
employees is a huge task or an issue, which the company has to deal with as recruitment
permission can be, obtain after business start - up. The authorised person must check
background and enter into a formal contract with sponsors after the business start - up as
many at times the UAE national sponsors involves in the whole process for just up to the
official business launch of the entity and leaves the company as per mutual understanding. It
is post - business start - up that the business entity should maintain proper records of the
sponsors with proper legal documentation, as this becomes a major issue and can lead to the
failure of the company.
https://ded.abudhabi.ae/en/our-services/service-guide/start-new-business
The major Dos and Donts for Business start - up in UAE in relation with the visa
process, professional licencing and business insurances are as follows: -

The Dos are: The owner or the authorised person of the business start - up should first confirm the
eligibility and requirements of the visas permitting the owner or authorised person
itself and the employees to live and work for the business entity. In recent times, a
new trend has started of hiring an agent who helps the business entity to complete the
company registration process with ease in return of nominal fees. The professional
licencing and business insurances are very similar in UAE for many different types of

business sectors. The authorised person must make a research analysis for the relevant
licences and insurances, which can help the business start - up. The company should
also understand the licencing and insurance liberations, which can affect the business
start - up such as selection of an UAE national as a business sponsor or starting - up
-

the business entity at Free Zone.


The Donts are: The authorised person must analyse the availability of the location, size and type of
the office as per business requirement in the Free Zone before registering the
company for Free Zone. The company must have clear understanding and knowledge
of all the terms and conditions with all relevant and irrelevant bank charges before
opening a bank account. If the authorised person is starting - up its business entity in
partnership or in association with an UAE national, then there should be a Legal
contract present before the business start - up licences were in the stage of being
obtain.

http://www.uaecompanyregistration.com/business-startup-uae
Recently, a major contemporary business issue is analyse inside UAE start - up firms; that is,
non - determination of the environment and economic conditions simultaneously. The newly
business start-up generally tends to excess and analyse environment and economic conditions
separately and not taking into account the effect of the environment activity over the
economic activity and vice - versa due to the presence of a new established business entity.

Conduct industry and environmental analyses of UAE firms and other


international businesses
UAE is one of the fastest growing economy in the world and it is acclaim to be one of the
worlds largest industrial hub. In an analyses of comparing the industrial and environmental
analyses of the firms which are either already established or are on the verge of getting

established in UAE with other international businesses of firms located in any other country.
The analyses shows the results that for a newly business start - up in UAE, the procedures
tends to take around 62 days of span to complete 11 business start - up procedures and 21
additional procedures to complete trade licencing as per the latest business benchmarking
report released by the World Bank. The latest World Bank report on business benchmarking
states that in comparison in ease of procedures of business start - up in UAE, Australian
Government just take or require only 2 procedures which can be complete in time span of 2
days.
The export and import procedure is comparatively faster for traders located in UAE with
respect to the traders present in Iraq, Saudi Arabia and Lebanon but the procedure is very
much slower as compare to the export and import procedure of Singapore. The export and
import procedure of UAE takes around 13 days for either export or import with 8 sets of
documents submission for imports and 9 sets of document submission for exports, whereas in
Singapore, it just takes around 3 days to complete either side of the procedure with the
requirement of only 2 sets of documents submission. On the other hand, the export and
import process of Iraq takes around 101 days to complete any one side of the procedure,
Saudi Arabia requires approximately 20 days to complete the procedure of any either side.
Lebanon requires around 38 days completing the procedure for either export or import and
clearing all the related paperwork in the country.
The traders located in UAE saves a lot of time on paying taxes in the country as compare to
the traders located in other countries. It is because in UAE, it requires approximately 12
hours to complete the taxes procedures and make the payment for the required amount
whereas it takes around 180 hours in Lebanon to complete the tax payment and paperwork
procedures. In Oman, approximately a trader requires 62 hours to complete the tax payment
and paperwork procedure. In Saudi Arabia, a trader requires approximately 79 hours to make

the payment and complete the related transactions to the taxes and fees. The traders located in
Egypt feel very helpless because around 711 hours or 30 days; that is, approximately one
whole month becomes a waste period to complete the taxes and fees payment and paperwork
procedure.
In UAE, a newly business start - up requires only 3 procedures and approximately 6 days to
register and get the property transferred under the name of the business entity. Whereas, in
Algeria it requires 14 procedures and on an average 30 days to get the property transferred
and registered under the name of the newly business start - up in the country. In Egypt, it
requires approximately 193 days to register a property or plot and get it transferred to the
name of the newly business start - up. The property registry cost in UAE for a newly start up business or firm is also on a lower side; that is, only 2 % of the total value of the property
whereas it is 28.1 % of the total value of the property in Syria to register a plot or property in
the country to establish a business start - up process. In Jordan, approximately 10 % of the
value of the property is applicable to register the property for a new business start - up,
though in Saudi Arabia, a new business start - up only requires to pay nominal paperwork
cost to register the property or the plot in the country.
If any newly business start - up fails to work and perform a profitable business in the country
then UAE is known as a nation where the recovery rate in case of bankruptcy is on the lowest
side; that is, 10.1 % only. In Kuwait, the recovery rate is 33.6 % as compared to 30.8 % in
Syria and 51.5 % in Tunisia. Japan is a country, which has the best recovery rate in the whole
world, in cases related to bankruptcy of any newly business start - up or any existing business
entity is 92.6 %.
In UAE, a newly business start - up requires approximately $ 460 to ship or acquire a
container in the process of export and import whereas in Singapore the amount payable by a

trader is just $ 367 and in Saudi Arabia, it is $ 758. Iraq is one of the most expensive one, as a
trader would require approximately $ 3400 for the process.
http://gulfnews.com/business/sectors/general/11-steps-to-starting-a-business-in-uae-1.202365

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