Planning to start your company in Dubai? Discover the 7 common mistakes entrepreneurs make in 2025 and how to avoid them smartly.

Setting up a company in Dubai is a fantastic opportunity but beware: some mistakes can cost you a lot, slow your growth, or even block your project entirely. Here are the 7 most common traps and our advice on how to avoid them.

1. Picking the wrong legal structure (Freezone, Mainland, Offshore)

Choosing between Freezone, Mainland, or Offshore should depend on your activity, your clients, and your ambitions.
➡️ The wrong choice can limit your operations, complicate your banking, and lead to unexpected long-term costs.

2. Choosing the cheapest option without thinking long term

You’ll find company formation offers starting from AED 5,000.
But beware: these low-cost setups often mean:

• Limited flexibility

• Difficulties with banking

• Lower credibility with partners and clients

3. Ignoring VAT and Corporate Tax

Starting in 2025, all companies in Dubai must plan for:

• VAT (Value Added Tax)

• Corporate Tax

➡️ Ignoring tax obligations can lead to heavy penalties and legal trouble.

4. Skipping local professional support

The UAE's administrative, banking, and legal systems are unique.
Without expert guidance, you risk:

• Delays

• Bank account rejections

• Legal mistakes

5. Opening a bank account without preparation

UAE banks are highly selective.
To succeed, you need:

• A clear and credible business model

• A clean financial profile

• A professional introduction

6. Not setting up accounting from day one

Proper bookkeeping is mandatory in Dubai. You must:

• Maintain complete accounting records

• Keep your documents for 5 years

➡️ Neglecting this can result in audits, fines, or worse.

7. Underestimating visa requirements

Depending on your business setup, you might need multiple visas:

• Partner visa

• Employee visa

• Freelance visa, etc.

Planning your visa needs early will save you both time and money.

How to avoid these mistakes?

✅ Work with an experienced consultancy like SLM Consultants
✅ Build a flexible, compliant, and scalable structure
✅ Leverage a strong network of banking, legal, and administrative partners

Need expert support to launch your company in Dubai?
👉 Contact SLM Consultants today!