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How to Move Germany Business to Dubai, UAE?

How to Move Germany Business to Dubai, UAE

Dubai stands as a haven for global business and investors, including those from Germany. With business-friendly taxes and policies, the government strives to maximize benefits for enterprises. Whether expanding or relocating, Dubai offers an ideal environment. For move your DE business to Dubai, UAE, this comprehensive guide explores the process, requirements, pros, cons, and crucial details to facilitate a smooth transition. Explore the insights for a seamless moving your business from Germany to Dubai, UAE.

Challenges in Conducting Business in Germany

#1. Bureaucratic Property Registration:

Registering property for a business in Germany involves a lengthy process, taking around 52 days. This includes obtaining extracts from the land registry, notarizing transfer agreements, securing municipality waivers, and paying transfer taxes.

#2. Complex Tax System:

The intricate German tax system poses challenges for businesses. With nine annual tax payments, totaling 218 hours of work, navigating tax laws requires collaboration with local finance specialists. Germany’s Pay As You Earn (PAYE) system adds to the complexity, necessitating time and effort to manage employee tax deductions.

#3. Starting Business Hurdles:

Starting a business in Germany is cumbersome due to complex bureaucratic requirements. The country ranks 125 out of 190 economies for “Starting a Business” in the World Bank Doing Business Report for 2020. New companies must navigate various offices, including regional tax and trade offices, chambers of commerce, and industry associations, making the process tiresome.

#4. Stringent Employment Protections:

German employment laws offer strong protections, including strict guidelines on firing, high minimum wage, and comprehensive employment contracts. Employee protection measures, although beneficial for workers, can be perceived as hurdles for businesses, impacting flexibility and adaptability.

#5. Distinct Business Culture:

Germany’s business culture demands a deep understanding of cultural nuances. The emphasis on efficiency, punctuality, and formality, coupled with a preference for organization and structure, can pose challenges for businesses unfamiliar with the German approach.

#6. High Labor Costs:

Germany’s high labor costs, reflected in an average hourly wage of 35.6 euros, pose challenges for international investors. The national minimum wage, set at 9.35 euros per hour, adds to the cost. High payroll taxation, with employers contributing an extra 20.7% to social security, makes labor expensive and recruitment costs significant.

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Compelling Reasons to Start a Business in Dubai

a). Business-Friendly Environment:

Dubai provides an exceptionally friendly and supportive business environment, evident from the recent launch of over 20,000 new businesses. The city attracts entrepreneurs globally, with approximately 80% to 90% of the workforce comprising foreigners.

b). Low Taxation:

One of the major draws is the absence of income tax on personal or business revenue in the UAE. The only significant tax is the Value Added Tax (VAT), currently set at a flat 5%, making Dubai an attractive destination for businesses seeking favorable tax conditions.

c). Vibrant Economy:

The United Arab Emirates boasts the second-largest economy in the Arab world, with a diverse range of industries contributing to a GDP of around AED 692 billion. From healthcare and hospitality to trade and technology, Dubai offers a dynamic economic landscape for entrepreneurs to establish their ventures.

d). Quality of Life:

Despite being ranked 23rd globally for the high quality of life, the UAE surpasses several European countries. This positive environment contributes to a favorable atmosphere for both living and doing business in Dubai.

e). Startup Support:

Dubai encourages entrepreneurship with numerous startup incubators and funding initiatives aimed at fostering business development. The city’s commitment to supporting startups provides a conducive ecosystem for new ventures.

f). Promising Economic Future:

The UAE is poised for significant economic growth, leading the Arabian Gulf with a projected expansion of 2.5%, according to the International Monetary Fund (IMF). This growth surpasses regional counterparts, such as Saudi Arabia, highlighting Dubai’s promising economic future as a thriving business hub.

Important Considerations Before Relocating to Dubai

  1. Higher Cost of Living: Dubai’s cost of living is generally higher than in Germany, particularly in terms of basic commodities and services. While housing may have affordable options, be prepared for increased expenses in areas such as food, utilities, and transportation. Conduct thorough research and financial planning to ensure a comfortable budget.
  2. Understanding Visa Types: Dubai offers various visa types, each serving a specific purpose. Employment visas are essential for those planning to work, requiring additional documentation like medical exams, health insurance, and valid passports. Tourist visas are suitable for short visits, while the Golden Visa provides extended residency for professionals, students, and investors.
  3. Extreme Heat: Dubai experiences intense heat during the summer months, with temperatures reaching up to 43 degrees Celsius. Prepare for the hot and dry weather by investing in air conditioning, wearing breathable clothing, staying hydrated, and avoiding prolonged sun exposure.
  4. Traffic Challenges: Dubai is known for its traffic congestion, with drivers experiencing significant delays. Plan for long commutes, especially during peak hours, and consider alternative transportation options such as public transit or carpooling to mitigate the impact of traffic.
  5. Islamic Holidays: Dubai observes Islamic holidays, impacting daily routines and business operations. Ramadan, a month of fasting, leads to reduced working hours and changes in business activities. Familiarize yourself with these cultural practices and plan accordingly to respect local customs.
  6. Business Zones: Dubai has distinct business zones – free zones, mainland, and offshore – each with its own set of rules and regulations. Free zones are advantageous for foreign entrepreneurs, offering fewer restrictions and incentives. The mainland may have stricter regulations but provides greater access to the local market. Understand these zones to make informed decisions for starting a business in Dubai.
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Setting Up a German Business in Dubai

Embarking on a business journey in Dubai holds immense potential, particularly with the city’s corporate allure and attractive tax regime. For German passport holders, the process of establishing a business in the UAE is relatively straightforward with the right documentation and a well-defined business plan. Here’s a step-by-step guide:

Step 1. Finalize Your Business Plan:

Before considering the move, ensure your business plan is thoroughly finalized. A business license is a prerequisite, and having a clear understanding of your business structure, operations, and goals is essential before initiating the relocation process.

Step 2. Select an Ideal Location:

Choose the location for your business carefully. Free zones in Dubai offer enticing incentives, including tax exemptions. However, be aware of any restrictions these zones may impose on specific business types. Conduct thorough research to make an informed decision aligned with your business goals.

Step 3. Prepare the Required Documentation:

Gather the necessary paperwork to facilitate a smooth transition. Essential documents include copies of shareholder and director passports, proof of address, a minimum of 3 months’ bank statements, education certificates (if applicable), and a certificate of share capital deposit (if required). If starting a mainland company, a signed lease agreement or co-working contract is also necessary.

Step 4. Apply for a Business License:

Once your documents are in order, proceed to apply for a business license from the Department of Economic Development (DED). The specific process may vary based on the chosen emirate or free zone, but the approval generally takes around two weeks.

Step 5. Establish a Local Bank Account:

With the business license in hand, open a local bank account to commence your business operations in Dubai. The city houses major international banks, offering a variety of options to suit your financial needs.

Step 6. Apply for a Visa:

Following the approval of your business license, proceed to apply for a visa. Visa requirements may vary depending on the chosen zone, so carefully review and fulfill the necessary criteria. Consider exploring the Golden Visa option for a self-sponsored visa, adding flexibility to your residency status.

Document Required to Setting Up a German Business in Dubai

Here’s a summary of the essential documents required when relocating from Germany to Dubai:

  • Copies of shareholder and director passports
  • Proof of address
  • Minimum 3 months’ bank statement
  • Education certificates (if applicable)
  • Certificate of share capital deposit (if required)
  • Signed lease agreement or co-working contract (if establishing a mainland company)

How to Move to Dubai From Germany with Company Setup

Moving your German business to Dubai, UAE offers a strategic shift from the challenges of doing business in Germany to the myriad benefits of the Emirates. By following the steps outlined in this guide, you can seamlessly transition your company to Dubai, unlocking a world of opportunities.

If navigating the process independently seems daunting, or if you have any concerns, reach out to expert business setup consultants like Company Setup Consultants . We handle your application, complete the process on your behalf, and ensure a hassle-free transition. Contact us now to secure your slot and embark on a successful business venture in the thriving UAE market.

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