Offshore Company to Hide my Identity, Dubai?

[drain]

Hello!

I have a limited liability company registered in Europe and unfortunately, all details are publicly disclosed (ceo/ shareholder names and details, addresses, etc.). My goal is to hide my own identity for a better privacy. My business is in no way illegal or shady, but I just do not want to have everything publicly available since I value my privacy. In my country there is no way to incorporate a company that hides those personal details.

The goal here is NOT to evade taxes. Since I live in europe, I will still pay my taxes here.

My idea:
- Incorporate a dubai freezone company and bill all customers through that dubai company. My customers will only "see" the dubai company. The shareholder of the dubai company is my european company.
- Forward all sales (minus a small management fee) to my european company. That means the dubai company will not have significant profits.
- This way, I still have the profits/ taxes in europe but my "public" business activities are routed through the Dubai company

Does this work? Is a dubai freezone company really discreet, i. e. is it impossible to gather the names / addresses/ personal details of the ceo/ shareholders? If not, what countries or companies could provide that?

Thank you for your help!

 

[Forester]

I do not feel competent to judge whether the UAE freezone company can serve well for this purpose or not as to the lack of a proper local experience; but I am sure that a US LLC in a properly choosed state can serve for this with a definitely less effort and costs than the former (on condition that you are not resistant to have some interaction with the US institutions ”“ if so, then forget my proposal).

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I am just a simple countryman. Anything I say is only a personal opinion, not a certified advice 🙂

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[yngmind]

drain said:
Hello!

I have a limited liability company registered in Europe and unfortunately, all details are publicly disclosed (ceo/ shareholder names and details, addresses, etc.). My goal is to hide my own identity for a better privacy. My business is in no way illegal or shady, but I just do not want to have everything publicly available since I value my privacy. In my country there is no way to incorporate a company that hides those personal details.

The goal here is NOT to evade taxes. Since I live in europe, I will still pay my taxes here.

My idea:
- Incorporate a dubai freezone company and bill all customers through that dubai company. My customers will only "see" the dubai company. The shareholder of the dubai company is my european company.
- Forward all sales (minus a small management fee) to my european company. That means the dubai company will not have significant profits.
- This way, I still have the profits/ taxes in europe but my "public" business activities are routed through the Dubai company

Does this work? Is a dubai freezone company really discreet, i. e. is it impossible to gather the names / addresses/ personal details of the ceo/ shareholders? If not, what countries or companies could provide that?

Thank you for your help!
Click to expand...

You will still have your details public because you own an EU company. Close it down and open a UAE or, better yet, a US company (less hassle, better processing, banking, and cheaper).

You're not hiding anything here. In the scheme you've described, your customers won't be able to find the shareholder, and that's all the scheme will help with. You'll probably end up spending an extra $5k a year to maintain it, and you'll likely need a UAE bank account.

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[drain]

Thank you for the responses!

yngmind said:
You will still have your details public because you own an EU company.

You're not hiding anything here.
Click to expand...

I don't understand those two points. When I have a Dubai company and invoice the customers through that Dubai company (i. e. they only see this company, and I process the payments through that company). then they have no knowledge about my EU company (unless they could find the shareholder/ ceo details of the Dubai company (which is not publicly available as far as I know (?)). I obviously still need to pay tax in the EU since I live here (for now), so I need to pass the profits to the EU company, but thats an internal contract and not public information.

Regarding US company:
Actually, my payment processor also recommended that (due to better payment processing opportunities in the US) but I have one big concern here: I have many US customers and I do not want to trigger any sales tax in the US. The US sales tax is extremely complicated and based on the state, city, etc. of the customer and that would mean a horrible bureaucracy + cost a lot of money.

So, if anyone can help me here and tell me whether a US company + US clients would trigger any tax liabilities in the US or not (I am NOT based in the US) I would be grateful.

Also, I was always sceptical because every EU bank asks whether you have a (business) relationship with the US and if you say yes, then it means a lot of bureaucracy and trouble (FATCA). Though I have no experience with that.

 

[yngmind]

drain said:
Thank you for the responses!


I don't understand those two points. When I have a Dubai company and invoice the customers through that Dubai company (i. e. they only see this company, and I process the payments through that company). then they have no knowledge about my EU company (unless they could find the shareholder/ ceo details of the Dubai company (which is not publicly available as far as I know (?)). I obviously still need to pay tax in the EU since I live here (for now), so I need to pass the profits to the EU company, but thats an internal contract and not public information.

Regarding US company:
Actually, my payment processor also recommended that (due to better payment processing opportunities in the US) but I have one big concern here: I have many US customers and I do not want to trigger any sales tax in the US. The US sales tax is extremely complicated and based on the state, city, etc. of the customer and that would mean a horrible bureaucracy + cost a lot of money.

So, if anyone can help me here and tell me whether a US company + US clients would trigger any tax liabilities in the US or not (I am NOT based in the US) I would be grateful.

Also, I was always sceptical because every EU bank asks whether you have a (business) relationship with the US and if you say yes, then it means a lot of bureaucracy and trouble (FATCA). Though I have no experience with that.
Click to expand...

You don't really have to bother with the sales tax unless you're making 6 figs a month.

Are you selling digital or physical products?

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[drain]

yngmind said:
You don't really have to bother with the sales tax unless you're making 6 figs a month.

Are you selling digital or physical products?
Click to expand...

My company is making 6 figs a month.

Digital services. No shipping involved.

 

[yngmind]

drain said:
My company is making 6 figs a month.

Digital services. No shipping involved.
Click to expand...

You are fine if it's digital, don't worry about the sales tax.

But better hire US CPA and get a legal opinion.

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I'm not a tax advisor, so please don't consider my posts here as tax advice. Always seek a professional opinion.
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[EliasIT]

drain said:
Hello!

I have a limited liability company registered in Europe and unfortunately, all details are publicly disclosed (ceo/ shareholder names and details, addresses, etc.). My goal is to hide my own identity for a better privacy. My business is in no way illegal or shady, but I just do not want to have everything publicly available since I value my privacy. In my country there is no way to incorporate a company that hides those personal details.

The goal here is NOT to evade taxes. Since I live in europe, I will still pay my taxes here.

My idea:
- Incorporate a dubai freezone company and bill all customers through that dubai company. My customers will only "see" the dubai company. The shareholder of the dubai company is my european company.
- Forward all sales (minus a small management fee) to my european company. That means the dubai company will not have significant profits.
- This way, I still have the profits/ taxes in europe but my "public" business activities are routed through the Dubai company

Does this work? Is a dubai freezone company really discreet, i. e. is it impossible to gather the names / addresses/ personal details of the ceo/ shareholders? If not, what countries or companies could provide that?

Thank you for your help!
Click to expand...

You can do it much cheaper and easier by registering a UK LTD with imaginary friends, read more about it in Mentor Group Gold ”“ or buy a ready-made setup from some of the sellers here on OCT. This way, you avoid all sorts of hassle, which you can also read more about in MG GOLD.

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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.

 

[OVER]

UBO disclosure is mandatory in EU. Or not? So if you keep EU company you will hit yourself as UBO. Drop EU company and deal with taxation on a personal level in EU to keep it private.

 

[drain]

EliasIT said:
You can do it much cheaper and easier by registering a UK LTD with imaginary friends, read more about it in Mentor Group Gold ”“ or buy a ready-made setup from some of the sellers here on OCT. This way, you avoid all sorts of hassle, which you can also read more about in MG GOLD.
Click to expand...

Thanks, will check that out as well.

OVER said:
UBO disclosure is mandatory in EU. Or not? So if you keep EU company you will hit yourself as UBO. Drop EU company and deal with taxation on a personal level in EU to keep it private.
Click to expand...

Okay, seem to be true. But I dont have a problem when banks, governments or payment processors know the UBO (me). I just dont want that random people, competitors, or customers can find the UBO (unless they go to court for example). Like there shouldnt be a public company register displaying the executives/ shareholders and they shouldnt be able to get the data with a simple email. Thats all I want.

 

[OVER]

drain said:
Like there shouldnt be a public company register displaying the executives/ shareholders and they shouldnt be able to get the data with a simple email. Thats all I want.
Click to expand...

Not sure, but any UBO privacy is about to end in whole EU. There is a heavy push, so get rid of your EU entity and be taxed on a personal level to keep it private "Information on beneficial ownership held in national central registers should be available digitally, in an EU official language plus English, and include current and historical information for a defined period. The entity in charge of the central register will have the right to request from corporate and legal entities any information necessary to identify and verify their beneficial owners."
https://www.europarl.europa.eu/news...inst-money-laundering-and-terrorist-financing

 

[Offct]

I would also recommend an anonymous US LLC.

The Economic Nexus in the US does not distinguish between US and non-US entities. Therefore, you could also be liable to sales taxes in the US with a Dubai company (Enforcement is a different topic).

You mentioned that you provide digital services, depending on what exactly you are doing it could trigger an Economic Nexus or not, while the rules are not the same as the EU VAT rules, they are somewhat similar. However, be careful with the individual states, unlike the EU they all have their own rules. For example, when we are talking about a SaaS solution it highly varies between the states.

A solution to handle the whole sales tax problem could be a MOR.

 

[OVER]

The new rules will come into effect in 2027 https://www.loyensloeff.com/insight...-the-identification-and-registration-of-ubos/

 

[yngmind]

How about an Irish or Scottish company? I think it's impossible or hard to find a UBO from those countries.

You can also own your EU company via a company in the US.

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[James Turner]

drain said:
Hello!

I have a limited liability company registered in Europe and unfortunately, all details are publicly disclosed (ceo/ shareholder names and details, addresses, etc.). My goal is to hide my own identity for a better privacy. My business is in no way illegal or shady, but I just do not want to have everything publicly available since I value my privacy. In my country there is no way to incorporate a company that hides those personal details.

The goal here is NOT to evade taxes. Since I live in europe, I will still pay my taxes here.

My idea:
- Incorporate a dubai freezone company and bill all customers through that dubai company. My customers will only "see" the dubai company. The shareholder of the dubai company is my european company.
- Forward all sales (minus a small management fee) to my european company. That means the dubai company will not have significant profits.
- This way, I still have the profits/ taxes in europe but my "public" business activities are routed through the Dubai company

Does this work? Is a dubai freezone company really discreet, i. e. is it impossible to gather the names / addresses/ personal details of the ceo/ shareholders? If not, what countries or companies could provide that?

Thank you for your help!
Click to expand...

@drain I see how your process will work and if your clients only deal with the Dubai company they will not be able to see who the shareholders, directors or UBO are, even if this is your European Company.

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[Forester]

drain said:
Regarding US company:
Actually, my payment processor also recommended that (due to better payment processing opportunities in the US) but I have one big concern here: I have many US customers and I do not want to trigger any sales tax in the US. The US sales tax is extremely complicated and based on the state, city, etc. of the customer and that would mean a horrible bureaucracy + cost a lot of money.

So, if anyone can help me here and tell me whether a US company + US clients would trigger any tax liabilities in the US or not (I am NOT based in the US) I would be grateful.
Click to expand...

Yes, this is really an important point. See below. (It did not come to my mind that you had US customers. Sorry.)

drain said:
Also, I was always sceptical because every EU bank asks whether you have a (business) relationship with the US and if you say yes, then it means a lot of bureaucracy and trouble (FATCA). Though I have no experience with that.
Click to expand...

FATCA concerns US citizens/residents, actually. Do not worry about this.

drain said:
My company is making 6 figs a month.

Digital services. No shipping involved.
Click to expand...

yngmind said:
You are fine if it's digital, don't worry about the sales tax.
Click to expand...

Wait, wait. It's not so simple, I am afraid. US taxmen are not less money-hungry that other tax institutions, on the contrary.

yngmind said:
But better hire US CPA and get a legal opinion.
Click to expand...

Yeah. I second this.

EliasIT said:
You can do it much cheaper and easier by registering a UK LTD with imaginary friends, read more about it in Mentor Group Gold ”“ or buy a ready-made setup from some of the sellers here on OCT. This way, you avoid all sorts of hassle, which you can also read more about in MG GOLD.
Click to expand...

Well, yes. Yet have in mind that this is, say, a “greyzone” solution. For a 6 figs/month business I would pick it just as the last resort...

drain said:
Okay, seem to be true. But I dont have a problem when banks, governments or payment processors know the UBO (me). I just dont want that random people, competitors, or customers can find the UBO (unless they go to court for example). Like there shouldnt be a public company register displaying the executives/ shareholders and they shouldnt be able to get the data with a simple email. Thats all I want.
Click to expand...

Fully understandable. Just be advised, as explained in the previous posts, in certain EU countries the UBO register is on-line publicly accessible even now ”“ and the future is quite clear.

Offct said:
The Economic Nexus in the US does not distinguish between US and non-US entities. Therefore, you could also be liable to sales taxes in the US with a Dubai company (Enforcement is a different topic).
Click to expand...

Exactly.

Offct said:
You mentioned that you provide digital services, depending on what exactly you are doing it could trigger an Economic Nexus or not, while the rules are not the same as the EU VAT rules, they are somewhat similar. However, be careful with the individual states, unlike the EU they all have their own rules. For example, when we are talking about a SaaS solution it highly varies between the states.
Click to expand...

Very true.

Offct said:
A solution to handle the whole sales tax problem could be a MOR.
Click to expand...

Well... really. If @drain does not intend to build a multinational corp. and in the same time has customers across all the US with 6 figs/month turnover, some merchant of record can be of a good help.

yngmind said:
How about an Irish or Scottish company? I think it's impossible or hard to find a UBO from those countries.
Click to expand...

Can't say for Irish or Scottish companies but for Cypriot or Malthese it is hard for sure.

yngmind said:
You can also own your EU company via a company in the US.
Click to expand...

An interesting idea.

Yet this sales tax problem in the US remains unsolved, except of the MOR solution.

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I am just a simple countryman. Anything I say is only a personal opinion, not a certified advice 🙂

If you think it makes sense, you can like it; if opposite, please, tell me, why I am wrong...

 

[GPT]

EliasIT said:
You can do it much cheaper and easier by registering a UK LTD with imaginary friends, read more about it in Mentor Group Gold ”“ or buy a ready-made setup from some of the sellers here on OCT. This way, you avoid all sorts of hassle, which you can also read more about in MG GOLD.
Click to expand...

The UK imaginary friends thing is at the point of being obsolete due to new legislation.

 

[GPT]

Forester said:
Can't say for Irish or Scottish companies but for Cypriot or Malthese it is hard for sure.
Click to expand...

Cyprus is already publicly available. Definitely the director and secretary and if not mistaken also the shareholder.
Malta I dont know 🙂

 

[mraleph]

yngmind said:
How about an Irish or Scottish company? I think it's impossible or hard to find a UBO from those countries.

You can also own your EU company via a company in the US.
Click to expand...

Forester said:
An interesting idea.
Click to expand...

The ownership - member or shareholder - should be distinguished from the UBO - it still needs to be declared and will be public EU wide. Have this situation where foreign entities are majority or sole owners of entities in EU; UBO has to be declared.

 

[yngmind]

mraleph said:
The ownership - member or shareholder - should be distinguished from the UBO - it still needs to be declared and will be public EU wide. Have this situation where foreign entities are majority or sole owners of entities in EU; UBO has to be declared.
Click to expand...

Are you that the UBO data will be public in that case?

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