UAE Freezone Company & Economic Substance

[MrDeddy]

Hi Guys,

Was hoping someone might be able to shed some light on this:

I am researching my options and now looking at a Freezone company (probably SHAMS) for general trading/IT hardware distribution. The hardware would be purchased from outside the UAE and goods shipped to countries outside of UAE.

I would plan to take UAE residency, although not live in the UAE (at least not initially). I currently reside in a SE Asian country, am not employed here and have no legal connection with any entity here or elsewhere.

• Main question I have - If I set up as a SHAMS entity (Freezone Limited Liability Company) and conduct a hardware distribution activity then ESR would apply? I believe yes but would be great to hear others thoughts.
• If I were to setup on a SHAMS Freelance license - ESR would not apply under the new guidance? However the company license would be under my personal name and not a company name? Not ideal for dealing with factories and suppliers etc

To be frank, I would want to avoid the business being subject to exchange of information with the authority in my country of residence. In order to do this, my understanding is that I would need to show economic substance?

I would be ok in employing someone for this if required - am curious to understand if anyone knows of any outsourcing agents that may offer such a service - accounting, admin, placing orders, negotiating with suppliers etc?

Thanks for any thoughts ad input!!

 

[Gediminas]

Hey,

Generally speaking, Economic Substance Regulations apply to UAE onshore and free zone companies that carry out relevant activities indicated in ESR. In order to determine whether your business falls under the regulations, I would need to fully understand your business. I would have to get more information about your business and to make an analysis in light of ESR.

After this examination, I would be able to indicate whether your business falls under the ESR and to offer you the most suitable solution. Depending on the results of the analysis, I would be able to offer you a plan for the next steps including company management services, accounting, premises, advice on exchange rules, etc.

Let me know if you have any questions.

I hope this helps. 😉

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