If you are a UAE National want to establish a company with f

If you are a UAE National want to establish a company with friends in UAE, which type of company you will choose? and why? Write the full answer and considering the following:

1- your nationalities.

2- the capital (share).

3- the activity.

4- the liability.

5- how many?

Please do it as soon as possible

Solution

Companies are of two types i.e. goods manufacturing and service providers. In countries like UAE there can be enormous opportunities in both the segments. But as an individual who is thinking of starting new business I would suggest to start a service providing company as it will take less amount of investment as compared to starting a goods manufacturing company. It is because if the business does not succeed the amount of loss will be less.   

Being a UAE national, who wish to start with friends the best business I would be interested in the business of Air conditioning equipment supplier. It is because the temperature of gulf countries is usually very high. Thus, there is huge demand of well equipment that are installed in the buildings to keep the temperature sustainable and favourable. Thus, there are very high chances that the business of Air conditioning equipment supplier. Also, being a UAE national, I would have an edge over the outsiders in the industry in terms of familiarity and acceptance.

But as per the management lessons a prior market research must be conducted so as to avoid pitfalls.

The capital needed to start the business will be around 120,000-150,000 UAE Dirhams.

The primary activities of the business will be to provide well efficient air conditioning equipment at affordable rates.

Initially, I would suggest to start only one company. Later, depending on the performance, the expansion plan can be devised.