What is the Eligibility Criteria to obtain Company Loans in Dubai?
Dubai has increased in popularity as a destination for expatriates over the years. To keep this trend, the Dubai loan industry has grown into a well-established market providing company loans to local and foreign lenders. If you are looking for company loans in Dubai. Then, in this article, we present to you certain very crucial things that you have to require to consider.
Getting the right company loans can help you to survive in an economy where is one fight after another to stay on top of the game. By taking benefit of this fast company loan in Dubai, a company can use the money to accomplish the financial requirements related to the regular task of the company like paying employees’ salaries, purchasing equipment, and inventory, for marketing purposes, etc. Which will present the development of the company. Having quick access to company loans in Dubai can empower you financially and will permit your company to continue and expand its worldly operations.
The most important thing that you have to consider before contacting a bank to get a company loan is the eligibility criteria offered by the concerned bank.
Below are the general criteria that all the banks consider:
- The business should be in operation for at least one year
- If your association is a subsidiary or branch of an offshore company, this will be considered easy to obtain a company loan.
- An annual turnover of AED one million is needed to get a company loan in Dubai.
Banks in Dubai offe4r different types of loans for different types of companies. The period of the loan for the company is 1 to 4 years.
Company Loans in Dubai
Running a company is not easy, and it doesn’t help if you are unable to make payments and purchases on time to take benefits of opportunities that come your way. That’s why company loans have become a necessary tool for businessmen. Being Able to take company loans permits you to continue operating business when you have a monetary cash shortage.
The company loan amount you are eligible for is based on your expected profits and the size of your company. The lender will want to ensure your business is capable of repaying the loan.
When you take a loan, if you offer an asset as a security to the bank, you will be taking a protected loan. The rate of interest for protected loans than unprotected loans, making it much more beneficial. Although, if you default on your payments, you would have to give up the asset you provided as protection to the bank.
What are the required documents to take Company Loans in Dubai
Whether it is a large or small company, it is easy to obtain company loans in Dubai if you have corrected and valid documents. The very crucial and mandatory documents you required are given below:
- Bank statements for the last twelve (12) months
- Memorandum of Association/board of resolution or share certificate
- Passport or visa of all the partners
- Emirate ID
- Office Ejari
- Owners home residence tenancy contract or sharing accommodation letter
- High volume transaction invoices
- VAT certificate
- Audit report
- List of employees obtained from Ministry of labor
- Landing bill
- Trade license
These all the essential documents that you need to prepare and submit to the bank for company loans.
What are the benefits of acquiring Company Loans in Dubai?
The advantages of company loans in Dubai are:
- As per convenience promoters provides different repayment options. They can work out a repayment scheme according to the business cash flows to avoid facing difficulties while servicing the loan.
- Monthly installment can be increased and decreased by the owners according to the profitability or select bullet payments to periodically repay the charge.
- As per the need of the fund different types, the owner vails the loan
- Many companies can select term loans to complete the fund needs in the short to long term.
- They can select working capital loans to accomplished the operational expenses of the business
- An overdraft facility whereby promoters can overdraw the current accounts according to the agreed terms and conditions
- The flexibility makes it easy for promoters to avail of a loan for the business facility
- No income or collateral documents require to submit to avail the company loans in Dubai
- Land or property should be owned by the borrower for a 100% loan disbursement
- For a business startup, these loans help to accomplish their business needs and maintain progress.
Offshore company bank account opening
For offshore company bank account opening , you should register the company. if you are planning to engage in international trading activities, then these existing offshore jurisdictions in the United Arab Emirates, such as RAK ICC, would be to your benefit. Keep in mind that offshore activities in the UAE will have limitations. For instance, you would be able to offer financial services of the UAE, so you can’t use the position of a tax resident of the country, etc.
In order to bank account opening in Dubai, it is compulsory for the individual shareholders of the company to be present in the United Arab Emirates. If there is an inconvenience for the shareholders to be present, a resolution can be attested and passed by offshore authority enabling any one individual to be present in the bank and be the signing authority to open operate and close the company bank account.