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Company Formation And Covid-19: Answers To The Business Setup FAQ

January 24, 2022


Every time we seek some information the unnecessarily long webinars tire us. Hence, we are here to rescue you from all those things. Read ahead to know answers for the most frequently asked questions regarding Covid-19 and company formation.


Before we begin, here’s some basic information about the CoronaVirus


What is Covid-19?


Covid-19 is a form of illness caused by the newly identified Virus in December 2019 at Wuhan, China. This recently identified infection is similar to that of a severe cold and mostly infects the respiratory system. It has been identified in both humans and animals. 


The disease is known to be highly contagious. There is no set treatment or medicine discovered for the infection which makes it more dangerous and untreatable causing the death of a person. It can be prevented by social distancing and keeping oneself clean and covered as it usually spreads through small droplets from mouth and nose. The immune system of a person prevents one from being highly affected by the Covid. Here are some frequently asked questions related to the Covid-19 and company formation.



Can we receive a package from an area where Covid-19 has been reported?


As said by the experts it is safe to receive the packages as the rate of contamination is very low when a package has been transmitted under different temperatures. 


Can one grocery shop safely during the pandemic?


So far there has not been reported any transmission case through food or packages. However, it is necessary to maintain a safe distance and sanitize yourself frequently. Also, avoid touching your nose and mouth to prevent yourself from the infection


Is the coronavirus airborne?


It has been identified that the virus mainly transmits in the form of droplets when one sneezes or coughs. The droplets are heavy enough to not hang in the air and they usually fall down to surfaces. Hence, it is safer to maintain a distance of more than 2 meters from any and every person.


What do I do if I receive less salary and have loans to pay?


Well, you do not have to worry about that. Thanks to the UAE Government as they have informed the banks to provide deferral and leniency personal loans, credit cards and even mortgages even for companies.


In case of a personal liquidity crisis, what do I do?

The government has not only informed the bank to provide leniency, they have also requested to provide loans for those in need. All you have to do is call the customer service in your bank and inquire about it. The same applies to the corporate liquidity crisis as well. 


What to do If I receive less salary and can’t afford to pay my rent?


Abiding to the law, the real estate authorities have agreed to provide leniency in terms of rent payment until the situation normalizes. The withdrawal of the check can be delayed to a period of 3 months at least. Hence, you can call your agents to explain your situation and discuss this in detail. 



How do I manage my business through the crisis?


You can protect your business by establishing a Business Continuity Plan (BCP). A BCP helps companies recover from any potential threat such as the Covid-19 pandemic. BCP ensures that when any disaster strikes the company, it is necessary that the personnel and assets function quickly without any weaknesses.


What are the industries that are promising even in the crisis and after?


As the saying goes, “When adversity strikes, an opportunity rises” a lot of industries are rising out of this crisis by reaching new heights and success. A few among them are as follows:

  • E-commerce services
  • Online games
  • Software VPN
  • E-learning 
  • Virtual Reality
  • Remote apps
  • Wellness and fitness
  • Entertainment
  • Remote conferencing
  • Food delivery
  • Etc.


The pandemic has had many boons and bans in regards with the companies and their formation. To be a part of the boons get in touch with company formation specialists such as Startup Zone to help you start right.


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