Free Zone company: Can we lend funds to a friend's German startup?

Dear Client,

Thanks for your question! I hope you are doing well. I will definitely assist you in this matter.

Yes, you can provide a loan from your company to your friend in Germany with a properly documented agreement specifying the terms and conditions.

For any further legal assistance, you can WhatsApp us. We have an extensive team of knowledgeable and experienced lawyers to provide the legal assistance you need.

We will definitely be happy to help you.

Thanks & Regards,

ABDUL WAHIED

Dear Questioner,

You cannot lend money to another person outside the company with interest.

This is because in the UAE, only licensed banks and financial institutions can legally lend money with interest.

It is better to make an investment in the business of the German company and make an agreement accordingly. But this also has certain regulatory compliances to be met as per UAE Law.

If you have an investment agreement according to the nature of the party and it's so accepted by the company management, then you can initiate such a transaction.

There is no restriction for such actions if proper documentation and requirements are met.

If you need better clarity, we will arrange a legal consultation for a charge.

Share your WhatsApp number if you want to go with the services,

Hi,

This is Nada,

Sir, what is the nature of your company?

If it's a financial company, you can give a loan.  But if it's not, you can not give a loan to individuals unless this individual is an employee or partner in the company.

If you require any legal support, please contact me at my phone.

Regards,

Nada

Dear Inquirer,

Hope you are doing well!

Kindly note that you can engage with him in a loan agreement and take some securities guarantee for your rights.

If you have any other queries you can reach us through Email or via Mobile.

I would appreciate it if you could leave your review and rate our advice if it helps you, thank you!

Best Regards,

MennaTullah