Should the fund be a legal entity before starting to raise capital?

searcher profile

April 17, 2019

by a searcher from Gordon Institute of Business Science, University of Pretoria in Dubai - United Arab Emirates

We are starting discussions with investors, but not yet formally raising capital. The reason for this is that registering a business in the UAE is extremely expensive.

Should we establish the legal entity before we know that we would be able to raise the capital? 

Thanks,
Marinus

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commentor profile
Reply by a searcher
from Gordon Institute of Business Science, University of Pretoria in Dubai - United Arab Emirates
Hi Sachiv,
we can register offshore, but I believe we have found a compromise - we have been accepted by a local accelerator offering subsidized company setup, subject to contributing to their co-working space in one of the free zones. This should enable us to acquire the target, take care of the visas and increase our local investor and industry network.
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Reply by an investor
from King's College London, University of London in Dubai - United Arab Emirates
Can’t you register an offshore company that will finally invest in the UAE entity? (To keep costs low) I assume you can register your residency visa on another company in the meantime?
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