October 28, 2024

Setting up a company and applying for a loan: How German companies can get started in Dubai

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Dubai attracts entrepreneurs worldwide and offers ideal conditions for setting up companies thanks to its numerous tax advantages, stable economy and strategic location between Asia, Europe and Africa. German companies particularly benefit from Dubai's international orientation and the numerous business options. However, the process of setting up a business can be complicated and requires thorough planning - especially if financing or a loan is required in Dubai. In the following, you will learn how German companies can optimize their start-up in Dubai and have the best chances of obtaining loan approvals.

1. the advantages of setting up a company in Dubai

Dubai offers a variety of incentives for foreign investors and entrepreneurs. Tax exemption on corporate profits and flexible forms of business in the numerous Free trade zones create an advantageous environment to grow in Dubai while keeping operating costs low. Setting up a company in Dubai also gives you access to a large and growing network of business partners and suppliers.

Advantages at a glance:

  • Tax advantages: No corporate taxes in most sectors.
  • Business networks: Access to international companies and partners.
  • Logistical advantages: Strategic location as a gateway between Asia, Africa and Europe.

2. choose the right company form

For German entrepreneurs, Dubai offers various company forms that differ in terms of legal requirements and advantages. The two most popular forms are the Free Zone Establishment (FZE) and the Mainland Company:

  • Free Zone Establishment (FZE): Ideal for companies that conduct their business mainly outside the UAE and want to retain full control over their company. Here 100% foreign ownership is allowed, but trade within the UAE is restricted.
  • Mainland Company: Suitable for companies that want to trade directly in the UAE. A local sponsor is required, but you get access to the entire local market and have fewer restrictions.

3. credit options for companies in Dubai

Applying for a loan in Dubai can be a challenge for German entrepreneurs. The local banks generally expect a certain Creditworthiness and documentation proving the value of the company and the planned income. German companies should prepare for the credit process at an early stage and pay attention to a few important points:

Important steps for a successful loan application:

  • Business plan: A detailed plan describing the planned course of business, sales forecasts and cost-cutting strategies is essential.
  • Financial reserves: Banks like to see financial collateral, so an equity reserve can be helpful.
  • Credit history: For established companies, previous credit histories can have a positive effect. However, new companies should be able to demonstrate a solid credit rating.

4. the advantages of a professional agency for company formation and financing

Entering the market in Dubai and the successful credit process can be made considerably easier with professional support. Agencies that specialize in business start-ups and financing advice in Dubai offer German-speaking companies a valuable service that reduces the risk of mistakes and speeds up the process.

Advantages of a professional start-up and financing agency:

  • Legal expertise: An experienced team knows the local laws and regulations and ensures that all documents are correct.
  • network in Dubai: Contacts to banks, lawyers and potential business partners to facilitate the start.
  • Time saving and efficiency: The steps for founding and loan approval are accelerated and optimized.

5. the next step: non-binding advice and success strategies for German companies

Setting up a company in Dubai and successfully applying for a loan are the keys to market success. If you are interested in gaining a foothold in Dubai and tapping into the Gulf market, you should obtain comprehensive information and support.

Request free information and advice now: Sign up for our funnel and find out how you can get off to a successful start in Dubai.

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