NON-CRS SETUP: Dubai Company with FREE Residence Visa and Bank Accounts! - DLS Dubai

[Gamblord]

I've already messaged you @Fred

Some logistical questions for you:

Q1. Just to be clear what are the out of pocket costs for the 1st year? It sounds like 7k euros for set up then 4k euro in maintenance fee for the business trade license. So 11k euros in year 1 then 4k each year thereafter?

Q2. I will obviously need to spend some money for health tests and lodging when going to UAE, how much money do you recommend preparing?

Q3. It sounds like you can't simply cash out huge amounts of fiat as this would upset the banks there. Can you recommend a less alerting way to cash out large sums of fiat? I understand you mentioned something about cashing some fiat then buying crypto again and cashing out to show organic behavior. I just assumed that we could cash out big sums and it wouldn't be an issue since everything done is legal.

Q4. How does one typically buy something like a property in his home country or overseas. Let's say I wanted to buy a small apartment in Ukraine, can I do this using my company? Is it anonymous?

Q5. If I want to send some cash to relatives what is the appropriate way of doing this? I pay myself out as an employee then pay out my relative with my personal account?

I apologize if these sound like stupid questions. I don't have any experience with this.

 

[Fred]

@Gamblord good questions.

1.) The 4k Business Trade License costs are already included in the 7k. So 7k for the first year and 4k ongoing - the 4k are the Business Trade License you renew directly with the Business Authority - no hidden costs.

2.) 1000 AED especially if you want to have everything done within minutes and VIP service.

3.) Source of Funds - it's all about source of funds. You can cash out millions at once in physically cash in the UAE but then you are limited to buying local property,cars and so on. The ways via Banks are there but has limitations of course. For 100M+ there are again other ways that can be used. There is no one fits it all solution and it needs to be discussed in person.

4.) Personal Loan from the UAE Company - especially in jurisdiction like Ukraine - depending on the country in EU it can be different. UK is famous for having property investment from offshore while Germany is not.

5.) Exactly - no issue.

Toggle signature

 

[sujoe]

Very informative thread, Fred, but how about the required substance for the company? I see it was not mentioned at all.
Does it not apply to a DSOA Freezone company? Thank you in advance!

 

[zzzzzz]

@Fred
1. How does an owner dissolve his freezone company, what is the process and how much does it cost?
2. Do banks require something like certificate of good standing every year?

 

[Fred]

sujoe said:
Very informative thread, Fred, but how about the required substance for the company? I see it was not mentioned at all.
Does it not apply to a DSOA Freezone company? Thank you in advance!
Click to expand...

The Economic Substance Regulations aren't related to a specific Company Type or Freezone - it's related to the Company Activity.

Relevant Activities:

• Banking Business
• Insurance Business
• Investment Fund management Business
• Lease - Finance Business
• Headquarters Business
• Shipping Business
• Holding Company Business
• Intellectual property Business (“IP")
• Distribution and Service Centre Business

So in case your Company doesn't conduct an activity from the list above - your registered Company Address is from the Government side everything you need to have.

However Substance in Terms of Bank Account opening is required with some Banks - of course we get this done for you together wit an associated Banker so that the Business Bank Account Application is as comfortable as possible for you and of course at no additional cost.

Toggle signature

 

[Fred]

zzzzzz said:
@Fred
1. How does an owner dissolve his freezone company, what is the process and how much does it cost?
2. Do banks require something like certificate of good standing every year?
Click to expand...

1. You get in touch directly with the Business Authority and start the process of dissolving the company - ca. 2000 AED.
2. The Banks require you to upload once a year the renewed Business Trade License - that's the only bureaucracy you face once a year. The Business Trade License is what we mention as rene costs as you only have to pay for the Business Trade License once a year - get the renewed Business Trade License and submit it via Online Banking to the Bank. That's it.

Toggle signature

 

[zzzzzz]

Fred said:
1. You get in touch directly with the Business Authority and start the process of dissolving the company - ca. 2000 AED.
2. The Banks require you to upload once a year the renewed Business Trade License - that's the only bureaucracy you face once a year. The Business Trade License is what we mention as rene costs as you only have to pay for the Business Trade License once a year - get the renewed Business Trade License and submit it via Online Banking to the Bank. That's it.
Click to expand...

What happens if you just don't pay renewal fee? I know that in Seychelles (IBC company) you could just leave it and it was struck from the registry - however there were some penalty fees to pay if you wanted to restore it back.

 

[Fred]

zzzzzz said:
What happens if you just don't pay renewal fee? I know that in Seychelles (IBC company) you could just leave it and it was struck from the registry - however there were some penalty fees to pay if you wanted to restore it back.
Click to expand...

Same here - Company will be strucked off and that's it.

To keep a clean business history within the UAE we always recommend to dissolve the Company Official.

After 2 months you don't update your trade license in the Online banking the Bank will charge you penalty fees and close your account after some time.

Toggle signature

 

[alexrinse]

Just today signed for the opening of my business bank account in the UAE, initiated through Fred whom I luckily came across on this forum. So add my thumbs-up to the others on this thread.

I am with the IFZA freezone, a flexi-desk licence. I'm not dealing with huge amounts of cash per month by any stretch - just a single-contract IT consultant. They haven't even asked for a minimum/initial balance but I will be bringing over the funds from the EMI I was using anyway.

When we stopped for a coffee after one bank meeting at the beginning of the process, Fred said he worried people on this forum might see him as a "unicorn". Having spent a couple of months before engaging his services reading various unsuccessful testimonies on reddit and here and elsewhere about how impossible it had become for FZ flexi-desk companies to get on board the UAE banks, I did wonder whether his confidence that it would be no problem might be misplaced/rooted in the hard-sell. Well, he's a good guy, decent and true to his word.

In any case, here I am 3 weeks since making the application and I have logged into my account today.

Oh - and get a company stamp. I think I had last heard of such things in Edwardian literature but they are still going strong here. I used Mr Shoekran in Kuwait St, Dubai and he did it in 30 minutes while I went for a Biriyani.

 

[Brutus]

1) Does this setup work for crypto exit strategy?

2) what crypto friendly bank are you working with?

3) what major crypto exchanges are compatible with said bank?

 

[Fred]

Brutus said:
1) Does this setup work for crypto exit strategy?

2) what crypto friendly bank are you working with?

3) what major crypto exchanges are compatible with said bank?
Click to expand...

1.) Yes
2.) All retail banks in the UAE are crypto friendly or in other words: not crypto unfriendly - if used right -> people think crypto friendly means no questions asked by the bank when opening a new bank account without history and withdrawing then millions - that will never work and that's why you have us to navigate you through the single steps
3.) Kraken

Toggle signature

 

[Brutus]

Fred said:
1.) Yes
2.) All retail banks in the UAE are crypto friendly or in other words: not crypto unfriendly - if used right -> people think crypto friendly means no questions asked by the bank when opening a new bank account without history and withdrawing then millions - that will never work and that's why you have us to navigate you through the single steps
3.) Kraken
Click to expand...

Works with binance too?

 

[Fred]

Brutus said:
Works with binance too?
Click to expand...

We are working with our recommendations and Kraken only as they have a licensed entity in Abu Dhabi.

Toggle signature

 

[offshoreecom]

Hey,

There is a lot of good information in this post.

I just have a question about the location to incorporate the company.

Why do you not recomend places like Fujairah ?

What is the advantage to have the company in Dubai?

Thank you,

 

[Fred]

offshoreecom said:
Hey,

There is a lot of good information in this post.

I just have a question about the location to incorporate the company.

Why do you not recomend places like Fujairah ?

What is the advantage to have the company in Dubai?

Thank you,
Click to expand...

Reputation.

Not only if you write invoices to other companies or need to sign contracts with big companies in Europe it looks better even some big banks like FAB and ENBD refuse to onboard companies incorporated in small emirates as the Freezones in smaller emirates not always follow the regulations it's too much risk for the banks we work with mainly.

What's the point to incorporate in smaller Emirates if you can have the same rate like in Dubai the way we make the setup.

Incorporating in Dubai comes only with plus and isn't more expensive then smaller Emirates Freezone - so we don't see any point why to incorporate there instead of in Dubai.

Toggle signature

 

[blenkin]

Hello, I'd like to buy your All-inclusive package - please let me know how I can reach out to you. Thank you!

 

[carlosbl]

Hi Fred,

How is it possible to a incorporate a non-CRS setup in UAE, since UAE agreed CRS on 2018?

Beside of that, in DTTs normally there is an article about exchange of information.

For example, here you have a look at the "exchange of information" article in DTT between UAE and Spain.

Thanks in advance.

 

[Fred]

Good Point @carlosbl

Due to the fact that we open the local UAE Business & Personal Account with the Residence Visa, Emirates ID and local phone no. the Bank consider you fully as local UAE resident and therefore no reporting of your financial statements under CRS is triggered.

It's called Residence by Investment by the OECD:

"While residence and citizenship by investment (CBI/RBI) schemes allow individuals to obtain citizenship or residence rights through local investments or against a flat fee for perfectly legitimate reasons, they can also be potentially misused to hide their assets offshore by escaping reporting under the OECD/G20 Common Reporting Standard (CRS)."

Source:
https://www.oecd.org/tax/automatic-...sistance/residence-citizenship-by-investment/

Toggle signature

 

[carlosbl]

Fred said:
Good Point @carlosbl

Due to the fact that we open the local UAE Business & Personal Account with the Residence Visa, Emirates ID and local phone no. the Bank consider you fully as local UAE resident and therefore no reporting of your financial statements under CRS is triggered.

It's called Residence by Investment by the OECD:

"While residence and citizenship by investment (CBI/RBI) schemes allow individuals to obtain citizenship or residence rights through local investments or against a flat fee for perfectly legitimate reasons, they can also be potentially misused to hide their assets offshore by escaping reporting under the OECD/G20 Common Reporting Standard (CRS)."

Source:
https://www.oecd.org/tax/automatic-...sistance/residence-citizenship-by-investment/
Click to expand...

Nice explanation!

Danke @Fred

 

[Verbatim]

Hi @Fred , please drop me a PM, thank you