Bank Account in Cyprus or UAE?

[orangeye]

It's been a long time since I've been around offshorecorptalk - great place, waow. I am looking for a bank account for our Swedish company that runs Internet trading. To make things a little easier for us, we are thinking of setting up a company with a bank account either in Cyprus or in the UAE. What do you think is easiest for our situation?

 

[Sols]

Why not get a bank account in Sweden?

Unless you have close ties to Cyprus or UAE and/or a very attractive business case, I'm not sure your chances are all that great.

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This is the probably the answer to your question.

 

[Konstanz]

orangeye said:
It's been a long time since I've been around offshorecorptalk - great place, waow. I am looking for a bank account for our Swedish company that runs Internet trading. To make things a little easier for us, we are thinking of setting up a company with a bank account either in Cyprus or in the UAE. What do you think is easiest for our situation?
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Try fintech companies like Bankera. They provide EU IBAN accounts and payments

 

[cyprusbanker]

Can we relay on Bankera as a trusted bank account for our Cyprus company?

Is there a thread with reviews, good or bad or similar?

 

[Konstanz]

cyprusbanker said:
Can we relay on Bankera as a trusted bank account for our Cyprus company?

Is there a thread with reviews, good or bad or similar?
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I am using them and I am happy with their service. Yes there is thread about them.
https://www.offshorecorptalk.com/threads/any-bankera-feedback.28936/

 

[Gediminas]

cyprusbanker said:
Can we relay on Bankera as a trusted bank account for our Cyprus company?

Is there a thread with reviews, good or bad or similar?
Click to expand...

Yes, you can totally rely on them. I know them very well. Their customer support is great!

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https://locked.money - Your Crypto Management Company, Ready in Days ”“ Trade, Invoice, $1,200/Year!

 

[JustAnotherNomad]

orangeye said:
To make things a little easier for us, we are thinking of setting up a company with a bank account either in Cyprus or in the UAE.
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To make what easier for yourselves?
Have you heard about CFC rules?

 

[rowena]

It is very unlikely to open a bank account for a foreign company in the UAE. You probably need to establish a branch company and apply it via that license. It is better to go with EMIs.

 

[CaptK]

UAE mainland can be registered in a day and you will need to go there to open your bank account. Think of it as a working holiday.

You can use an EMI until you get there and so long as you can prove your current business is running well they will open you an account.

It's a lot easier then Cyprus and costs a little bit more but they won't give you any headache after that.

 

[Konstanz]

CaptK said:
UAE mainland can be registered in a day and you will need to go there to open your bank account. Think of it as a working holiday.

You can use an EMI until you get there and so long as you can prove your current business is running well they will open you an account.

It's a lot easier then Cyprus and costs a little bit more but they won't give you any headache after that.
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Maybe a little headache when there are CFC and PE rules enforced if not properly established business. Cyprus is EU country, it's a bit different in that view
I suggest to firstly consult with tax advisor before doing such incorporations
Regarding accounts EMI's are much faster than banks..

 

[CaptK]

Konstanz said:
Maybe a little headache when there are CFC and PE rules enforced if not properly established business. Cyprus is EU country, it's a bit different in that view
I suggest to firstly consult with tax advisor before doing such incorporations
Regarding accounts EMI's are much faster than banks..
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CFC & PE rules will be the same in both situations. To that regard the UAE is more advantageous overall.

 

[JustAnotherNomad]

CaptK said:
CFC & PE rules will be the same in both situations. To that regard the UAE is more advantageous overall.
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No, not necessarily. It's not unusual for the rules to be different for EU and non-EU companies, or rather, for EU treaties to set some limits to what the taxman can do.

I haven't read the whole document, but since the original question mentioned Sweden, this might be interesting, it's in English:
https://www.skatter.se/?q=node/1345
You can clearly see that the CFC rules are different for EU and non-EU companies. On top of that, you can expect that a UAE company will invite more scrutiny than a company in another EU state - though I guess Cyprus is almost as much of a red flag.

 

[CaptK]

JustAnotherNomad said:
No, not necessarily. It's not unusual for the rules to be different for EU and non-EU companies, or rather, for EU treaties to set some limits to what the taxman can do.

I haven't read the whole document, but since the original question mentioned Sweden, this might be interesting, it's in English:
https://www.skatter.se/?q=node/1345
You can clearly see that the CFC rules are different for EU and non-EU companies. On top of that, you can expect that a UAE company will invite more scrutiny than a company in another EU state - though I guess Cyprus is almost as much of a red flag.
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Yes totally agree as you can appreciate Cyprus is viewed as negatively as the UAE tax wise, so you might as well go all out with no restrictions.

 

[pesto]

Gediminas said:
Yes, you can totally rely on them. I know them very well. Their customer support is great!
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how old are they and what is your relation to them? you look to be one of the owners.

 

[Gediminas]

pesto said:
how old are they and what is your relation to them? you look to be one of the owners.
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If I remember right, they started their eco-system back in 2012.

They are my partners, I bring part of my clients to their financial insitututions. And I can say they are my best partners.

Unfortunately I am not the owner. I wish I was. 🙂

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https://locked.money - Your Crypto Management Company, Ready in Days ”“ Trade, Invoice, $1,200/Year!

 

[JustAnotherNomad]

CaptK said:
Yes totally agree as you can appreciate Cyprus is viewed as negatively as the UAE tax wise, so you might as well go all out with no restrictions.
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Read the rest of my comment. The Swedish CFC rules specifically make a distinction between EU and non-EU companies. You can have as much substance as you want with a non-EU company, it will be a CFC. If it's an EU company, if you have proper substance, it's not a CFC because that would violate EU treaties.
That's how I understand it at least.

 

[CaptK]

orangeye said:
It's been a long time since I've been around offshorecorptalk - great place, waow. I am looking for a bank account for our Swedish company that runs Internet trading. To make things a little easier for us, we are thinking of setting up a company with a bank account either in Cyprus or in the UAE. What do you think is easiest for our situation?
Click to expand...

Do you currently live in Sweden?

 

[orangeye]

yes I do.. I will not be able to relocate!

 

[CaptK]

orangeye said:
yes I do.. I will not be able to relocate!
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Then both structures are not really going to benefit you much. You maybe better looking at Estonia from my understanding unless you actually employ staff and have a running office.
What will you be trading?

 

[JustAnotherNomad]

Unless Estonia is whitelisted in Sweden, I don't see how Estonia would have an advantage over Cyprus.

@orangeye
You need to read this:
https://www.taxathand.com/article/1...ent-adopts-proposal-to-amend-CFC-legislation-
And this:

https://www.skatteverket.se/service...edenornot.4.71004e4c133e23bf6db800094764.html
Just forget about your whole plan, it's not going to work out this way.
If you cannot relocate to a different country entirely, you can choose 2 out of 3 for your structure:
- cheap
- legal
- substantial tax savings

Maybe there's a third way, by using a foreign holding company:
https://www.offshorecorptalk.com/threads/paying-corporate-income-tax-only-cashing-out-later.30816/
But even if that should indeed work (which I'm not sure about), it's going to cost you a good deal of money. And it would only allow you to save your money for later, while still paying Swedish corporate income tax. Just find a good Swedish accountant and work with them to get the maximum deductions you can get. Forget about offshore companies.