and how to avoid for an IT consultancy/digital marketing/affiliate business, really interested?
Are you thinking of closing your UAE business or already close down after New Corporate Tax ?
- Thread starter troubled soul
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For anyone interested in costs of closing down, liquidators report is around 1500 AED and IFZA closure cost is another ~3800 AED
T
thomasparra
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As a former employee of IFZA, here are the costs associated with liquidating the business:
- Visa Cancellation - 500 AED if you are in the country during the procedure, 1300 AED if you are outside
- Est. Card Cancellation - 500 AED
- License Cancellation - 2000 AED
You will however also submit an accounting report, which is not done by IFZA. You would need to find a company yourself, the prices range from 5 to 10k AED.
As far as I am aware, it is a report showing all transactions from your last year of business. If you need some of those companies, happy to connect.
@Ancova
What happens if an owner, e.g. no wife, no children, passes away overseas?
What happens then?
What will UAE and others do?
That is a great question, I am 99% sure I know the answer, but want to doublecheck and will get back to you!
@jafo I checked with our lawyers and as I though, the company will go to the State of UAE if there is no will.
Other scenario is if the deceased has family. As per the Shariya law in UAE, a non muslim expat which deceased will have his company split according to the Shariya law. That means the wife gets 1/4, the sons 1/4, the daughters 1/8 and the remaining to the brothers. This is why we advise our clients to do a will upon setting up the company, it is a one time cost of AED 25,000 but saves every hassle coming afterwards since the scenario of Shariya law is not ideal in most cases.
You may be thinking what about muslim expats. They cannot have a will in the UAE and their assets will be split as per the Shariya law. In this case what we do is opening a trust in Cook Islands which owns the Dubai company and the assets will be split as mentioned in the trust, even for muslims in UAE.
Hope this helps!
Last edited: Aug 25, 2023
But if the company has no assets, no balance on the bank accounts, visa still valid. The person dies and nobody knew about his/her Dubai business so nobody informs UAE? What will they do?
I usually tell the non Muslim expats to do a will. There must be some person they want to inherit something.
For Muslims, a Cook Island trust that owns the Dubai entity
Either UAE or any other country which doesn't tax foreign sourced income.
Wide choice available.
Of course, nobody knows how things will be next year. Changes are about to come everywhere since all countries need money.
But why is it necessary to close a company then and carry the closing cost? Just play dead and never return to UAE.
We serve many UHNWI families and do only Cook Islands for them. Here are some reasons"
Building & Managing Generational Wealth Sustainably
- Preferred trust jurisdiction for high net-worth individuals, wealth management and succession planning
- Simplifies complex aspects of trust law while preserving the fundamental advantages
- Introducing innovative and ground-breaking asset protection provisions
- Asset protection of Cook Islands is recognized as the standard for best protection internationally
Ӣ Forced Heirship
Trust or settlement cannot be voided if it defeats heirship rights of related individuals
Settlor's capacity cannot be questioned.
Ӣ Bankruptcy
Trust or settlement remains valid in the event of Settlor's bankruptcy in their home jurisdiction.
Ӣ Spendthrift Beneficiaries
Interests in trust assets for beneficiaries cannot be alienated, passed by bankruptcy, or seized.
Ӣ Common Law Rules
Abolishes rules against accumulations and double possibilities. Trustee has discretion to avoid the rule in Saunders v. Vautier.
Ӣ Perpetuity Period
Abolishes Common Law rule against perpetuities
Trust can exist indefinitely or terminate based on specified events or dates.
Ӣ Fraudulent Conveyance
Establishes rules for determining validity of transfers and protecting rights of potential claimants.
Ӣ Burden of Proof
Limits creditor's access to specific settlement assets, not entire trust fund Creditor must prove intention to defraud within prescribed time limits.
Ӣ Foreign Judgments
Cook Islands courts do not recognize judgments based on inconsistent laws. Claims against trust assets must be initiated in Cook Islands court.
A typical Cook Islands Wealth Protection structure has several components allowing both flexibility and protection:
- Ø TheSettlorestablishesaCookIslandsInternationalTrust.
- Ø A Cook Islands licenced trustee company provides the
Trustee. - Ø The Settlor and family members can be discretionary
beneficiaries of the Trust. - Ø A Protector can be appointed to monitor the activities of
the Trustee, and can be granted absolute or veto powers or
a combination of both. - Ø The Settlor can provide a letter to the Trustee detailing
his/her wishes in regards to the investment and
distribution of assets both during and after his/her lifetime. - Ø The Trust owns 100% of a limited liability company (“LLC”) incorporated in the Cook Islands, or other jurisdiction
appropriate to the client's circumstances. - Ø The Settlor, or his representative, is the Manager of the LLC.
- Ø Assets are held and managed within the LLC or entities
underlying it. - Ø The Trustee is not required to be involved in the
management of the LLC or its assets. - Ø The Trustee can be granted power to remove and replace
the Manager of the LLC in certain circumstances to protect the interests of the Manager and the assets under his/her control - Ø The Manager is not personally liable for the debts, obligations or liabilities of the LLC.
- Ø The Trustee is not subject to foreign judgements or forced heirship rules.
Structuring Options
- Purpose trust (charitable or non-charitable)
- Discretionary trust
- Trust with fixed interest beneficiaries
- Any combination of the above
Possible Control Elements - Protector
-Appointed with powers and functions defined in the trust
instrument
-Not held liable as a fiduciary, unless stated otherwise in the trust
instrument
-Settlor, Trustee, or Beneficiary can serve as the Protector if
desired - Co-Trustee
-In addition to a licensed Cook Islands trust company, an
individual or entity can be appointed as a co-trustee -Co-trustee doesn't require a license in the Cook Islands to
engage in trust company business - Retention of Powers
-Settlor can retain, possess, or acquire certain powers without
invalidating the Cook Islands International Trust
-Powers can include: Amending or revoking the trust; Disposing
of trust assets; Removing or appointing a; Trustee or Protector; Directing the Trustee or Protector on any matter
Are you guys turning the thread into Cook Island discussion and advertising now?
I can say that we will keep our current Dubai company as it is in our company network. The 9% corporate tax don't matter at all, it is almost transparent.
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If money is your hope for independence you will never have it. The only real security that a man will have in this world is a reserve of knowledge, experience, and ability!
My personal favorite thread posted in the Mentor Group. Group of investment companies to avoid licensing.
I can say that we will keep our current Dubai company as it is in our company network. The 9% corporate tax don't matter at all, it is almost transparent.
Toggle signature
If money is your hope for independence you will never have it. The only real security that a man will have in this world is a reserve of knowledge, experience, and ability!
My personal favorite thread posted in the Mentor Group. Group of investment companies to avoid licensing.
I personally don't mind the 9% as well. The cook island trust is for HNWI and good for Muslim expats who want to have a will
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