UAE free zone for dropshipping business

[Konstanz]

LoveMyLife said:
Mashreq will never open bank account for FTZ company owned by person who is citizen of high risk country. Does not matter if the person is resident of UAE. This person is citizen of one of north african countries. The only one which is not on blacklist of the most banks in UAE is Morrocco. If he is citizen of any other countrym he can forget to have a bank account in UAE for FTZ company.

I understand, you are trying to sell. And you hope to solve a problems late. But be fair. Write the truth here. For how many peiople from notrh africa have you ever openned a bank account for FTZ company in the UAE?

The most of banks in UAE will NEVER EVER open bank account for such company. Many people in the UAE face the same problems. He will have to live in the UAE for at least few months, maybe half year to be acceptable for the banks with his business. He will have to open personal bank account first. The most of banks will not open current account. But will be illing to open saving account. As long as he will live in the UAE and have some time relationship with a bank, it can be possible to open bank account for FTZ business.

Please, write a the truth. and be honest When people ask you here to provide information, do not ask them to contact you directly to be able to hide facts from public reaction..
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I am sure there is a way to open bank account at other countries not necessary UAE

 

[Fred]

For Dropshipping I think you need PayPal and Stripe and maybe other merchants?

PayPal is working very limited in UAE. Stripe dont work at all.

You should go for a combination of US LLC for the merchant account part and UAE freezone for the profit shifting and residence.

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[talker]

Fred said:
For Dropshipping I think you need PayPal and Stripe and maybe other merchants?

PayPal is working very limited in UAE. Stripe dont work at all.

You should go for a combination of US LLC for the merchant account part and UAE freezone for the profit shifting and residence.
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Thanks Fred for the feedback!

How much taxes do I have to pay on the US LLC while living in the UAE? knowing that I sell mainly to US customers (I guess that will require to collect state taxes)!

And how about the UK LTD, will that be better for taxes?

 

[Fred]

Drzou said:
Thanks Fred for the feedback!

How much taxes do I have to pay on the US LLC while living in the UAE? knowing that I sell mainly to US customers (I guess that will require to collect state taxes)!

And how about the UK LTD, will that be better for taxes?
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With the Dubai company setup UK LLP will be your real deal.

You simply setup the Dubai company with residence and bank account and proceed after that with the incorporation of the UK LLP. As the UK LLP require 2 partners - you will be a partner and your Dubai company.

The UK LLP is tax neutral and you get taxed in your residence country - in your case the 0% tax UAE + UK LLP works very good with Stripe and PayPal.

If you require help with this setup or further clarification - feel free to PM me.

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[talker]

Fred said:
With the Dubai company setup UK LLP will be your real deal.

You simply setup the Dubai company with residence and bank account and proceed after that with the incorporation of the UK LLP. As the UK LLP require 2 partners - you will be a partner and your Dubai company.

The UK LLP is tax neutral and work very good with Stripe and PayPal.

If you require help with this setup or further clarification - feel free to PM me.
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Does this mean 0% tax with this setup?
Thanks Fred

 

[Fred]

Drzou said:
Does this mean 0% tax with this setup?
Thanks Fred
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Yes

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[lacomaco]

Fred said:
For Dropshipping I think you need PayPal and Stripe and maybe other merchants?

PayPal is working very limited in UAE. Stripe dont work at all.

You should go for a combination of US LLC for the merchant account part and UAE freezone for the profit shifting and residence.
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To insert a US LLC when the client deals with US persons just to solve the question of the merchant account? Why not talk to your bank in the UAE? Many of them provide card acceptance as a service - obviously with restrictions on your citizenship

 

[Fred]

lacomaco said:
To insert a US LLC when the client deals with US persons just to solve the question of the merchant account? Why not talk to your bank in the UAE? Many of them provide card acceptance as a service - obviously with restrictions on your citizenship
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It's the simplest way.

The banks in UAE are old-school and provide mainly PoS stations not online merchant processing for let's say Shopify in multicurrency. If it's possible like with merchant services - avoid a UAE bank service.

Even local companies that work online and collect in AED only work with online merchants like Payfort.

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[EuroKiss]

Fred said:
For Dropshipping I think you need PayPal and Stripe and maybe other merchants?

PayPal is working very limited in UAE. Stripe dont work at all.

You should go for a combination of US LLC for the merchant account part and UAE freezone for the profit shifting and residence.
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With a USA LLC the UBO needs SSN to open with PayPal, Stripe and even CCBill. I got a USA LLC with business account and have to use a UK LTD per merchant due to lack of SSN.

 

[Fred]

EuroKiss said:
With a USA LLC the UBO needs SSN to open with PayPal, Stripe and even CCBill. I got a USA LLC with business account and have to use a UK LTD per merchant due to lack of SSN.
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Yes as mentioned in other topics the best recommendation is to forma a UK LLP in combination with the previously formed Dubai company. The UK LLP is tax neutral and is easier to work with compared to the US LLC.

The UK LLP can be formed with 2 partners. One partner is the Dubai company and the oder partner is yourself.

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[lacomaco]

Fred said:
It's the simplest way.

The banks in UAE are old-school and provide mainly PoS stations not online merchant processing for let's say Shopify in multicurrency. If it's possible like with merchant services - avoid a UAE bank service.

Even local companies that work online and collect in AED only work with online merchants like Payfort.
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How will such a US LLC tax-free in the US? Isn't the full cost of accounting and taxpaying is an additional serious cost?

 

[Fred]

Not at all.

But as mentioned in other topic we do the setup mainly with UK LLP.

The additional cost is close to zero.

For example if a client setup with us the Dubai company with residence and bank account in UAE - we don't charge anything additional for the UK LLP Consulting / setup.

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[lacomaco]

Fred said:
Not at all.

But as mentioned in other topic we do the setup mainly with UK LLP.

The additional cost is close to zero.

For example if a client setup with us the Dubai company with residence and bank account in UAE - we don't charge anything additional for the UK LLP Consulting / setup.
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What about the running cost and compliance of the UK LLP?

 

[Fred]

lacomaco said:
What about the running cost and compliance of the UK LLP?
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We can discuss further via PM.

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[BlueMist]

Fred said:
We can discuss further via PM.
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It's a valid question, why not to continue it public? Although I have never considered such option, I would also be interested in the UK LLP compliance going further and running fees, reporting requirements (accounting, audit), VAT registration requirement, annual submission if any. Can the 2nd partner have 0% shares (e.g. UAE FZ) to be considered as a legal setup? Are profits distributed from UK LLP (dividends) tax free on the UK level?

Any UK real bank possibility with such a structure of UK LLP with 2 non resident shareholders (essentially the same UBOs...)?

 

[Fred]

BlueMist said:
It's a valid question, why not to continue it public? Although I have never considered such option, I would also be interested in the UK LLP compliance going further and running fees, reporting requirements (accounting, audit), VAT registration requirement, annual submission if any. Can the 2nd partner have 0% shares (e.g. UAE FZ) to be considered as a legal setup? Are profits distributed from UK LLP (dividends) tax free on the UK level?

Any UK real bank possibility with such a structure of UK LLP with 2 non resident shareholders (essentially the same UBOs...)?
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Because Admin don't want us to turn this thread into an advertising.

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[EuroKiss]

Fred said:
Because Admin don't want us to turn this thread into an advertising.
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It isn't an ads if you answer the question in the thread. It is when you say to PM you.

 

[lacomaco]

EuroKiss said:
It isn't an ads if you answer the question in the thread. It is when you say to PM you.
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Bravo

 

[fshore]

EuroKiss said:
With a USA LLC the UBO needs SSN to open with PayPal, Stripe and even CCBill. I got a USA LLC with business account and have to use a UK LTD per merchant due to lack of SSN.
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Do PayPal support your UK Ltd when you don't live in UK? Do they require proof of owner/director address in the UK?

 

[EuroKiss]

fshore said:
Do PayPal support your UK Ltd when you don't live in UK? Do they require proof of owner/director address in the UK?
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Yes (I have address in EU)
No