Sticking to Transferwise as EMI, what about the incorporation country?

[mmueller]

You don't have to pay any tax if you setup a UAE company in RAK FZ. No accounting and no audit required. Transferwise accepts UAE companies and the corporate registry is anonymous.

Running cost for year 1 and on 2000 - 2500 EUR. Setup cost around 2500 EUR.

 

[JimmyWho]

OffshoreBVI said:
As far as taxes go if all your business is outside the UK you shouldn't have to pay UK taxes.
Click to expand...

Will an account with TransferWise make the income considered made in the UK?

 

[OffshoreBVI]

Where one banks doesn't determine tax treatment.

Resident companies are taxable in the United Kingdom on their worldwide profits (subject to an opt-out for non-UK permanent establishments [PEs]), while non-resident companies are subject to UK corporation tax only on the trading profits attributable to a UK PE....

United Kingdom - Taxes on corporate income

See the link above for further details and/or seek competent tax advice for your specific situation.

 

[JimmyWho]

Is where the bank account is located is an issue for Singaporean companies?

 

[OffshoreBVI]

Singapore companies have no problem with most banks. Singapore banks are some of the strongest in the world with low prices and decent service. The down side is that Singapore companies are expensive to form and maintain if you're not a Singapore resident as you need a resident director.

 

[JimmyWho]

A Singaporean's foreign sourced income that is sent to a Singaporean bank account is taxed on said income. The tax exemption only applies if the money is not remitted to Singapore and instead is paid directly to the foreign shareholders as a dividend.

Correct me if I am wrong?

Source: FAQs on Taxable and Non-taxable Income - IRAS

 

[OffCap]

Loosely that's correct in practice most income a Singapore company earns will be taxable. Why would you look to Singapore vs some of the alternatives? I love Singapore as a place to visit and live and the banks are fantastic but for forming companies they really aren't a great destination.

 

[JimmyWho]

Which alternative would not provide banking compliance issues? The problem with most 0% jurisdictions is that there is too much privacy and my customer's banks will always be suspicious that my company is really owned by the customer and is part of a tax evasion scheme by the customer.

 

[OffCap]

JimmyWho said:
Which alternative would not provide banking compliance issues? The problem with most 0% jurisdictions is that there is too much privacy and my customer's banks will always be suspicious that my company is really owned by the customer and is part of a tax evasion scheme by the customer.
Click to expand...

Where are you getting this from?

 

[JimmyWho]

I sell to China. People I have told me that countries like Seychelles are no good because banks in China suspect that Chinese people are sending themselves money out of China as part of a tax evasion scheme.

All this is hearsay so it can be completely wrong.

 

[OffCap]

JimmyWho said:
I sell to China. People I have told me that countries like Seychelles are no good because banks in China suspect that Chinese people are sending themselves money out of China as part of a tax evasion scheme.

All this is hearsay so it can be completely wrong.
Click to expand...

If you're selling to China I'd seriously look at Labuan in large part because you can get low cost people who speak Mandarin so it's a nice gateway to China without the costs of HK and Singapore. This assumes you don't need any of the infrastructure Malaysia is weak on or will trigger any of the areas where tax is problematic there.

 

[TurnedToRobot]

mmueller said:
You don't have to pay any tax if you setup a UAE company in RAK FZ. No accounting and no audit required. Transferwise accepts UAE companies and the corporate registry is anonymous.

Running cost for year 1 and on 2000 - 2500 EUR. Setup cost around 2500 EUR.
Click to expand...

Where did you get these costs from? I read all over this places and agent sites running costs are 15K ?

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[mmueller]

That's from my own agent which I have used for this setup. There are plenty others to find if you Google around, I'm unsure about promotions/links here so not going to post anything.

People on this forum have been talking about license costs and so on when it comes to UAE companies however that is nothing that I've heard about or been required to get for the one I have.

There are a few different free-zones in UAE and companies formed in one or the other probably have different requirements/fees. The one I'm talking about is Ras Al Khaimah Free Trade Zone (RAK FTZ) and my company is expressly forbidden from conducting business inside UAE which could explain the low price I suppose.

 

[Larry]

mmueller said:
That's from my own agent which I have used for this setup. There are plenty others to find if you Google around, I'm unsure about promotions/links here so not going to post anything.

People on this forum have been talking about license costs and so on when it comes to UAE companies however that is nothing that I've heard about or been required to get for the one I have.

There are a few different free-zones in UAE and companies formed in one or the other probably have different requirements/fees. The one I'm talking about is Ras Al Khaimah Free Trade Zone (RAK FTZ) and my company is expressly forbidden from conducting business inside UAE which could explain the low price I suppose.
Click to expand...

The prices you mention can only be possible for RAK ICC's the classic offshore companies like IBC's you can forget about to get any good banking inside UAE for them. Few years ago I had one together with Paysera account but this times are all gone. And yes as registered agent with RAKEZ I know what I'm talking about.

Either a normal Freezone with just a Flexi Desk have problems this days to get a bank account. As already mentioned there are banks like Mashreq who have blacklisted RAK completely.

 

[Nicholas Van Orton]

darkster said:
Where did you get these costs from? I read all over this places and agent sites running costs are 15K ?
Click to expand...

@darkster ==> As @ledger just pointed out in the post above this one, the costs @mmueller indicates are for establishing RAK ICC offshore companies (analogous to what a standard IBC is). As I mentioned in another thread devoted to specific UAE setups, these are now almost entirely forbidden from doing banking within the UAE (RAKBANK might be able to open a business account for your structure, but it would require a personal visit and lots of charm and clout to be honest, let alone the fact that they'd be expecting to churn you out in commissions from the 'big' business you would (be forced to/be asked politely to) bring them), and there are some banks like Mashreq and Noor Bank that have these setups blacklisted for good, so you do the math.

However, having said that and on the positive side, if a reputable EMI like TW, MT or Paysera accepts such a setup, which as OP suggests it is the case, that's a different ball game, because indeed the setup costs of a RAK ICC structure are substantially lower than any other setup in the UAE, starting around $1,1K and usually sitting around $2,5K all-in. So if anyone is fine with dealing with EMIs, then this may be an economically efficient option to consider. BUT bear in mind that offshore companies in the UAE are NOT considered residents, so they will end up reporting you under CRS/AEOI, unlike freezone companies, which are considered resident and will ONLY report you to UAE authorities (if need be) and nobody else.

 

[CryptoIsFreedom]

JimmyWho said:
A Singaporean's foreign sourced income that is sent to a Singaporean bank account is taxed on said income. The tax exemption only applies if the money is not remitted to Singapore and instead is paid directly to the foreign shareholders as a dividend.

Correct me if I am wrong?

Source: FAQs on Taxable and Non-taxable Income - IRAS
Click to expand...

I'd like to ask, is money sent to SG company via Transferwise Business account count?

1. So I got a Stripe account.
2. It sends money to SG company Transferwise details.
3. Transferwise makes my money available in the borderless account.
4. I send Transferwise money into my bank account in the BVI or something

It never enters my company SG bank account. Legally speaking, I don't even have a company SG bank account.

In this scenario the income is exempt, correct?

@OffCap I'd like your input too