Working with a business partner drastically changes the dynamics of running a business in UAE. Great business partners contribute diverse skills and talents to a business. For starting a business in the mainland, investors are required to partner with UAE nationals or local service agents to get approval for company formation.
Here are several tips to find the perfect partner for your business:
Look into your network
An entrepreneur’s connections are the best candidates for potential business partners. Reaching out to your professional network can provide you with rich list. Referrals from trusted colleagues also can be helpful.
Evaluate skills and experience
A good business partner has skills that support and complement your own. No single person is a master of all the aspects of running a business. If your partner is a skilled and talented person that can help the business develop and grow.
Assess compatibility of your personality trait
Complementary personality traits can positively impact overall company leadership. Finding the person that is going to balance the leadership equation for your business is important, not only to the business, but to the employees as well. This approach facilitates a higher level of trust between partners and it permeates throughout the organization.
Check resources and credibility
It is great to have a business partner that has financial resources, but there are other contributions a partner can bring to the business that can just be as valuable. A partner with a secure business network is great as industry connections can increase the value of a business.
Determine financial stability
This is one of the most important factors to consider when going into business with a partner, you need to find out what the financial status of your prospective partner is. You need to have complete transparency when it comes to the finances for your business, the start-up costs and how much you are investing into it. Starting a business venture can be very expensive, so having a partner that can contribute to the start-up costs can relieve pressure and stress. It’s important to discuss finances up front to avoid any surprises later. Someone in the middle of a financial crisis may not be the best choice to go into business with for a variety of reasons.
Assess business ethics
Partner with a UAE national that you can trust. Look for a partner who values honesty and practices good personal and business ethics. A poorly chosen business partner may end up messing with the company or violating the laws of the company and potentially lead your business into legal trouble.
Business setup services in UAE
Business partners or local service agents play an important role in helping your business succeed. You should take time to really evaluate your potential business partners. It would definitely be beneficial to your startup in the long run. The above-mentioned tips will help you find a perfect business partner for the organization. Consult with a business setup team to partner with the right local service agent in UAE.
Before you proceed, here are some of the common questions on partnering with a local service agent:
What is meant by local service agent?
A local service agent (LSA) is a UAE national who assists a foreign investor in the license requirements and all other government-related matters for business.
What kind of legal framework is used in Dubai for business setup?
Dubai has an entirely different set of laws for foreign investors who are setting up their businesses in Dubai. Paperwork and legal requirements are minimal and procedures are fast tracked so it is extremely easy to setup a company, and acquire licensing and registration.
What kind of physical structures are available for foreign investors?
UAE offers leasing/purchase of various types of business facilities. The governing bodies for free zones even provide excellent warehouses, office spaces, and other facilities.
Can a foreign company open a branch in the UAE?
A foreign company can open a branch in UAE after maintaining a certified letter from the parent company and getting the approval of the UAE’s Ministry of Economy.