Top Mistakes People Make When Setting Up A Company In Dubai
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If you’re planning to set up a business in Dubai, you need to read this before you make the same mistakes that hundreds of others have made. My name is Kevin McKenzie, Co-founder at GenZone, and in this article, I’m going to walk you through the most common missteps people make when relocating to Dubai — and more importantly, how you can avoid them.
At GenZone, we specialize in making your transition to Dubai seamless, fast, and stress-free. We’ve helped over 600 people set up companies in the last 24 months alone. If you’re thinking of starting your business journey in Dubai, avoid the traps that delay your success.
Leaving the Country Too Early
One of the first mistakes many people make is flying out of the country before their residency is fully issued. Here’s what typically happens:
You arrive in Dubai
Get your entry permit
Complete your medical test and biometrics
At this point, many assume they’re done and decide to leave the country.
But here’s the catch: You must stay in Dubai until your residency is officially issued. Leaving too early can void your visa processing and cost you extra time and money.
At GenZone, we streamline this entire process. We arrange for your medical and biometrics on the same day you arrive. Your residency is usually issued by the next day. So if you absolutely need to leave, you can, but only after this step.
Other agencies may take 5-7 business days between medicals, biometrics, and issuing the residency. That’s why GenZone clients save time and avoid this costly error.
Choosing the Wrong Trade License Activities
Just because your license gets issued doesn’t mean you chose the right activity. There are thousands of license activities in Dubai, and choosing the wrong one can:
Delay your business bank account approval
Trigger unnecessary compliance checks
Raise red flags with financial institutions
Your business license activity should be selected based on multiple factors:
Nationality
Type of business
Preferred bank
Visa structure
At GenZone, we study your unique profile and recommend the activities that banks are most likely to accept without extra documentation. Don’t risk being rejected by your bank because you tried to cut corners.
Misunderstanding Visa Validity and Residency Rules
Here’s something most people don’t realize:
You must enter Dubai at least once every 6 months, or your employment visa gets automatically cancelled.
If that happens, you’ll be stopped at immigration the next time you try to re-enter the UAE.
Quick Tip: GenZone offers a solution for those stuck abroad beyond 6 months, but it’s always better to avoid this situation altogether.
Also, don’t confuse this with tax residency. To qualify as a UAE tax resident, you need to spend at least 90 days per year in Dubai and maintain proof of life in the country.
Entering Dubai Before Entry Permit is Issued
We often hear: “I have a Canadian/British passport, I can just come in on a tourist visa while waiting for my e-visa.”
Yes, you can. But if your entry permit isn’t ready, and you enter on a tourist visa, you’ll have to:
Pay a conversion fee of AED 1,600 (~$435)
Or worse, leave and re-enter the country by air to change your visa status
Bottom line: Don’t fly in until your entry visa is issued to avoid unnecessary delays and costs.
Choosing the Wrong Free Zone
Not all free zones in Dubai are created equal. Just like smartphones, they may all make calls and texts, but the experience is very different.
Here’s why choosing the wrong free zone can hurt you:
Banks might reject your account if the free zone has a poor reputation
Visa applications can be denied due to low compliance
Customer service is often poor, resulting in frustrating delays
There are only a handful of high-quality free zones worth working with. At GenZone, we partner exclusively with those that provide the best outcomes for our clients.
We get emails daily from people saying:
“Kevin, I set up with another provider, and now my bank account won’t open. What do I do?”
Don’t let that be you. Your business deserves better.
Trying to Save Money With Low-Cost Setup Providers
Trying to save a few hundred dirhams on your setup can cost you thousands in mistakes, delays, and rejections.
When you work with GenZone, we:
Set you up right the first time
Proactively plan for tax, VAT, and compliance issues
Save you money by avoiding rework and government fines
Think of us not as an expense, but as an investment into your future in Dubai.
Many of our clients say:
“Kevin, you should charge more for this level of service.”
But we keep our pricing reasonable to help more people succeed.
Ignoring Corporate Tax Planning
Corporate tax is now a reality in Dubai. If your net profits exceed AED 375,000, you may be liable to pay 9% corporate tax.
That’s why proper tax structuring and planning matters more than ever. GenZone helps clients:
Understand their tax obligations
Set up tax-efficient structures
Stay compliant and avoid future fines
Ignoring this will not only cost you more in taxes but may also expose you to serious penalties.
Setting Up Without Long-Term Planning
Dubai is not just about the license. If you plan to:
Hire a team
Open multiple bank accounts
Expand your product lines
Claim UAE tax residency
…you need to build the right foundation from Day 1.
That’s where our 1:1 strategic consultation at GenZone comes in. We look at your short and long-term goals, and design a plan that scales with you.
Assuming One Size Fits All
Every person and every business is different. That’s why we never use a copy-paste approach.
Our consultants take into account:
Your nationality
Your business model
Your preferred banking partner
Your investment horizon
Your growth roadmap
This level of customization is what sets GenZone apart.
Not Working With Professionals
You’re relocating your life and business to another country. Why risk it with amateurs?
GenZone has helped clients from the UK, US, Australia, France, Canada, India, and more. We’ve done over 600 successful setups, and we’re here to make sure yours is next.
Final Thoughts
If you want to start a business in Dubai, don’t make the same mistakes others do:
Don’t rush the process
Don’t work with just anyone
Don’t cut corners to save a few bucks
Dubai offers incredible tax savings, lifestyle upgrades, and global market access. But to unlock all of that, you need to set it up right.
At GenZone, we deliver:
Fast and compliant setups
Bank account approvals
Residency and visa support
Ongoing consultation for growth
Book your free consultation today, and let’s make your Dubai dream a reality.
We’re excited to work with you and help you thrive in one of the world’s most exciting cities.
