RAK ICC or Ajman Offshore With UAE Resident Golden Visa Shareholder/Director

[Jtatur]

I've seen a couple of threads warning against setting up RAK ICC companies because it is very hard to get a bank account for them. Does that also apply if the shareholder and director has a local visa and job?

My situation: I need an inexpensive holding company which will hold my stocks and bonds in Interactive Broker account. I have a job in Dubai and a golden visa (which I got via the job). IB will accept the company but needs a linked bank account. I don't mind keeping $50k in the UAE company account (though I'd prefer less like $10k). Is one of the banks like RAK Bank, FAB, Mashreq likely to open an account for a new company without a trade licence?

I don't really want to open a freezone or JAFZA offshore company as they are more expensive to run.

 

[Martin Everson]

Out of interest why do you need a holding company as opposed to holding securities in your name?

Any UAE setup is not inexpensive to run.

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Please note my posts should not be taken as financial or tax advice. Please seek professional advice in that respect.

 

[Jtatur]

Martin Everson said:
Out of interest why do you need a holding company as opposed to holding securities in your name?

Any UAE setup is not inexpensive to run.
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1. In the event of my death, I thought DIFC will/RAK ICC shares is a super easy way to distribute shares to my kids without going through US probate and potential estate taxes.

2. I spend time in Europe, so I like the idea of having some separation to the assets in case some country gets the bright idea that I'm tax resident there.

3. I have some interests in the U.S. and if any unexpected liability should arise there, again I'd be happy to have some extra hoops that any creditor would have to jump through.

 

[JustAnotherNomad]

Jtatur said:
1. In the event of my death, I thought DIFC will/RAK ICC shares is a super easy way to distribute shares to my kids without going through US probate and potential estate taxes.
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Maybe look into DIFC foundations also.
But generally any corporation will avoid US estate tax. I think it was @TheCryptoAnt who mentioned that all UAE-based trader he knows just use some offshore company for this, he may have more input here. I probably wouldn't want to get the UAE involved in this.

Jtatur said:
2. I spend time in Europe, so I like the idea of having some separation to the assets in case some country gets the bright idea that I'm tax resident there.
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That won't be much help, they will simply also consider your offshore entity tax resident as well. It just might be a bit harder for them to find out that you own the assets this way.

Jtatur said:
3. I have some interests in the U.S. and if any unexpected liability should arise there, again I'd be happy to have some extra hoops that any creditor would have to jump through.
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Fair enough.

 

[Martin Everson]

Jtatur said:
1. In the event of my death, I thought DIFC will/RAK ICC shares is a super easy way to distribute shares to my kids without going through US probate and potential estate taxes.
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Are you a U.S Person then?

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Please note my posts should not be taken as financial or tax advice. Please seek professional advice in that respect.

 

[JustAnotherNomad]

Martin Everson said:
Are you a U.S Person then?
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How is that relevant? There would be US estate tax in any case if he holds US assets.

 

[JustAnotherNomad]

JustAnotherNomad said:
I think it was @TheCryptoAnt who mentioned that all UAE-based trader he knows just use some offshore company for this, he may have more input here.
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Found it:

[IMG alt="TheCryptoAnt"]http://localhost/data/avatars/s/30/30616.jpg?1727588592[/IMG]

Post in thread 'Suitable structure/residency for active trader (Stocks, futures, options)'​

Jan 10, 2025

JustAnotherNomad said:
I would try reaching out to UAE-based traders.
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Most people use personal accounts with Proof of Address somewhere else and me + 3 others I know have large enough balances that we use 'classic' offshore corps to have them separated from us.

2 Seychelles, 1 Belize, 1 Cayman.

I know around 15 people full time traders counting myself.

• TheCryptoAnt