GNcareers, from Gulf News

Numbers game in business

Numbers game in businessImage Credit: Supplied

Planning to set up a new business in the UAE? Good market research is the first step even before choosing the location, determining the business type and ownership, and getting a licence.

Decide whether you want to set up the company in a free zone, in the mainland or offshore. Free zones are more cost-effective, but the start-up procedures, capital and other fees in each free zone may differ.

The amount for securing a trade licence depends on the nature of the business. After obtaining a licence, the investor has to bear the costs of sponsoring employees, visas, medical exams, insurance and accommodation.

Additionally, the expenditure includes business and liability insurance, initial employee salaries, and accounting or legal service fees. A business in the mainland demands a local sponsorship fee which needs yearly renewal. Those in the trading business should pay the authorities certain fees to import goods.

Budget is also needed to set up an office. You can either buy or rent a property. For a hassle-free procedure, seek the help of a real estate consultant, but keep in mind that the agency will charge you for their services.

Consider other expenses like annual rent, parking fees, utilities, furniture and office supplies, transport facilities, Internet, telephone and IT services. Charges for sales advertisements and other promotional activities likewise need initial evaluation.

Handy Hints:

• Market research is the first step in business setup

• Consider administrative, promotional, legal fees

• Trading firms pay customs fees to import goods

Get tips on how to set up a hotel in Abu Dhabi

Source: Asha Das, Special to Classifieds

The writer is a freelancer