Avoid These 5 Mistakes When Opening A Company In Dubai
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Starting a business in Dubai? You’re in the right place. But before you dive in, let us warn you—there are endless mistakes you can make throughout the process. These mistakes could cost you thousands of dollars, waste your time, and even cause legal trouble if you’re not careful.
Unless you’ve worked with experts like us at GenZone, or you’ve gone through the process yourself before, there are things you simply wouldn’t know. That’s why were are here today—to save you from making these costly errors.
At GenZone, We specialize in helping people set up companies, obtain residency visas, open bank accounts, become tax residents in Dubai, and more.
We get messages all the time from people who either worked with the wrong agents or tried to do everything themselves—only to end up with massive problems that could have been avoided. These mistakes happen at every stage, from the initial setup to maintaining the company.
So, let’s dive right into some of the most common mistakes entrepreneurs make when setting up a company in Dubai.
Mistake #1: Leaving Dubai Too Soon During the Visa Process
A major issue people face is misunderstanding when they can leave the country during the visa process. As part of obtaining a residency visa, you’ll need to complete a medical and biometrics appointment. Many people assume that once they’ve done this, they’re free to leave Dubai—but that’s not the case.
After your medical and biometrics, there is a waiting period before your digital residency visa is issued. If you leave Dubai before getting your digital residency visa, you could face serious delays and additional costs.
We’ve seen so many people book flights, vacations, and hotel stays right after their medical appointment, only to be stopped at the airport. They end up losing money on flights, extending their stay in Dubai unexpectedly, and wasting time they could have used on their business.
If you work with us at GenZone, we make sure this process is smooth. Our VIP service ensures that your digital residency visa is ready within one or two days after your biometrics appointment. Once you have your visa, you’re free to leave the country without issues.
Mistake #2: Choosing the Wrong Business Activities for Your Trade License
Your trade license is the foundation of your company, but if you don’t select the right business activities, you could run into major problems.
Some business activities are considered high-risk in Dubai, making it nearly impossible to open a corporate bank account. Others may require additional approvals, extra costs, or longer processing times.
If you add too many unrelated activities under one license, banks may get confused about what your company actually does. This confusion can lead to delays in opening your bank account—or worse, a rejection.
Unless you have experience setting up companies in Dubai, you won’t know which activities are high-risk and which ones are safe. That’s where we come in. At GenZone, we guide you through the process, ensuring that your trade license is structured in a way that allows for an easy company setup and banking experience.
Mistake #3: Not Understanding Visa Validity Requirements
Another big mistake people make is assuming that once they have their visa, they don’t need to do anything else to keep it active.
A standard employment visa in Dubai is valid for two years. However, to keep it active, you must enter the UAE at least once every six months (183 days).
If you leave Dubai for more than six months, your visa can be automatically canceled. This means you may face difficulties re-entering the country, and you might have to go through the entire visa process again.
But don’t worry—if this happens, we can help. At GenZone, we can apply for a re-entry permit to ensure that you can return to Dubai smoothly, even if you’ve been away for more than six months.
Mistake #4: Entering Dubai at the Wrong Time During the Visa Process
Once your company is set up, you’ll need to apply for what’s called an e-Visa (entry employment visa). There are two types of e-Visas:
Outside Country e-Visa: If you’re applying while outside Dubai, you must wait for your e-Visa to be issued before entering the UAE. If you enter Dubai before receiving it, you’ll have to leave and re-enter the country, which is an unnecessary hassle.
Inside Country e-Visa: If you’re already in Dubai, you can apply for this option. However, there are additional costs involved (around 1,600 AED or $436), and you must remain in the country while your visa is being processed.
If you don’t follow the right process, your visa application can get rejected, forcing you to start over. When you work with us at GenZone, we provide clear timelines so you know exactly when to enter or leave the country to avoid these issues.
Mistake #5: Choosing the Wrong Free Zone for Your Company
Not all free zones in Dubai are the same. At first glance, they may seem similar, but in reality, each free zone operates differently.
Some free zones offer better banking options, faster processing times, or more business-friendly services. Others may have hidden fees, require additional paperwork, or make it difficult to get your business running smoothly.
We receive messages from people all the time who have issues like:
Delayed company registration
Extra costs for services they didn’t expect
Problems opening a bank account
Rejected banking applications
All of this happens because they registered in the wrong free zone.
When you work with us at GenZone, we only recommend the best free zones in Dubai. We guarantee a smooth registration process, proper banking setup, and a VIP experience to ensure everything runs seamlessly for you.
Final Thoughts
Setting up a company in Dubai is one of the best business decisions you can make. But if you don’t know what you’re doing, it can quickly turn into a costly and frustrating experience.
The key mistakes to avoid include:
Leaving Dubai too early during the visa process
Choosing the wrong business activities for your trade license
Not understanding visa validity requirements
Entering Dubai at the wrong time during the visa process
Choosing the wrong free zone for your company
At GenZone, we specialize in making this process easy, fast, and stress-free. We guide you every step of the way, ensuring that you avoid these mistakes and set up your business in the best possible way.
If you’re serious about setting up a company in Dubai the right way, book a call with us today. We’d love to help you navigate this journey smoothly and successfully.
