Starting a business in the UAE is relatively straightforward, but there are pitfalls that can delay your plans or cost you money. Here are the most common ones — and how to avoid them.

1. Choosing the Wrong Jurisdiction
Many entrepreneurs jump into a Free Zone because it’s cheaper — only to find out they can’t legally serve UAE customers.

Tip: Always align your jurisdiction with your target market and business goals.

2. Ignoring Visa Requirements
Some Free Zones have limits on the number of visas you can issue, which may restrict hiring or even securing your own visa.

Tip: Plan ahead for your staffing and residency needs.

3. Underestimating Hidden Costs
While the base cost might seem attractive, there are often additional charges for visas, office space, approvals, and renewals.

Tip: Get a full cost breakdown from your business setup advisor.

4. Not Understanding Local Regulations
Each Free Zone and Mainland authority has its own rules. Non-compliance can lead to fines or license suspension.

Tip: Consult with a registered agent or business consultant familiar with the UAE laws.

5. Delaying Bank Account Setup
Banking in the UAE has become more regulated, and corporate accounts can take weeks to open.

Tip: Start your bank application as soon as your license is issued and keep all your documents organized.