Best way to manage a BVI company

[OffshoreResearch]

We all know that a BVI is exempted from taxes as well as from dividend‌ withholding tax.
Let's say I live in a country which doesn't tax foreign income (it's‍ obviously what I'm finally going to concretize and not just an hypothetic case) and which⁠ has a double taxation treaty with the BVI so what's the most legit and transparent⁤ way to withdraw dividends from the company to my personal account ?
I mean that⁣ I can't surely just wire funds from the company account to mine so should this⁢ be cared from my local tax accountant or from a qualified one in the BVI︀ ?

Basically what should I provide to my country to proof the legit origin of︁ such funds ?
Thanks in advance for your feedback.

 

[Konstanz]

If you like in a country like UAE with 0% income tax, no CFC, you‌ should be fine to withdraw from BVI with no tax

 

[OffshoreResearch]

Thanks for your advice.
Some months back I've ivestigated a lot about UAE companies and‌ it seems it's quite impossible 'today' opening a bank account for a freezone company (without‍ local shareholders/directors) for a non resident and it's even harder dealing with banks basing on⁠ some reliable info collected from an Iraqi friend who knows very well the local situation.⁤
Noting is easy today and most of the good structures are not supported by banks⁣ so I'll have an hard life while looking for a bank ready to open an⁢ account in the UAE.

 

[sonato]

you are able to visit the⁠ UAE and consult a firm to help you?

If you read on the forum it⁤ sounds like personal visit is mandatory and you need someone used to it to help⁣ you.

 

[Davis123]

Agreed 100 percent.⁠ These days you need the right introducer to banks in UAE as well as an⁤ LLC company.

 

[OffshoreResearch]

But BVI companies pay apparently no tax and no dividend withholding tax so a complex‌ matter may be simplified by starting to look for banks ready to open an account‍ for it in a safe jurisdiction.
Ah surely UAE is the best option to legally⁠ avoid any taxes and I agree on that point.

I'll check again about current UAE⁤ situation with my contact by asking him to collect some info locally and I'll try⁣ to make a decision.

 

[sonato]

if you can get a bank account with some bank in the UAE then please⁠ don't forget to come back her and let us know how you did it, there⁤ may be hundred of people around here interested in the same.

 

[Davis123]

If you open up a Dubai Freezone company like Jafza etc you will be⁤ able to get an account with a bank as some Dubai free zones can get⁣ accounts easily but if you get any LLC with a local partner as share partner⁢ you will be able to open accounts in a few minutes. Banks love LLC.

 

[OffshoreResearch]

I don't even know if possible going to the UAE from Europe actually and I'll‌ still need to talk with my Iraqi friend to know how things are actually working‍ locally but I'll surely update the thread in case I should make such decision so⁠ I'll let you know how things worked.

But opening an LLC with a local partner⁤ may probably expose at possible risks my bank account and future funds in case he⁣ should have equal rights like me to manage it - Again I may be wrong⁢ so I'll investigate further about this topic as well.

 

[JohnLocke]

do you know if this will require personal visit or is it possible to let the‍ partners do the account opening?

 

[OffshoreResearch]

Honestly I'll not be comfortable with an LLC and an unknown person (partner) opening the‌ company account by gaining equal right to the same and to all my future funds.‍
I'm sure most of these people are real professionals actually dealing with dozens of companies⁠ still I've to think a lot about that.

 

[Dandyline]

Just open a simple freezone company to gain UAE residency, open private bank account. Then‌ just wire money from BVI (or UK LLP, US LLC) to your private bankaccount in‍ UAE.

 

[Konstanz]

You can also move to some exotic island countries like Bahamas or Vanuatu and enjoy‌ tax free exotic life. However, be aware you will have really live there and also‍ banking will become more difficult. Because these countries are high risk. But be able to⁠ use BVI companies etc.
This does not apply to USA citizens , because they pay⁤ tax based on citizenship and some other cases when you still have wife kids in⁣ your home country.
You have to emigrate properly and then you will be tax free⁢ 🙂

 

[OffshoreResearch]

I'm thinking since a long time to spend some time in few diff. exotic places‌ before choosing the right one where starting a new tax-free life problem is that COVID‍ is making things harder just now that I was ready to start travelling around the⁠ world.
I don't want to stay anymore in my home country so I'll start travelling⁤ from November towards the few opened countries of the moment (the ones which won't force⁣ me to a quarantine of course).

 

[wheelspin]

Depending on your business you may throw a look on so called professional license in‌ UAE. Listed activities such as accounting, consulting or project management allows you to open a‍ mainland company without a sponsor/local resident who owns 51%. This does not apply to trade⁠ licenses. For mainland companies LLC it is pretty easy open a business bank account as⁤ they are not beeing considered as offshore liability.
To setup you will need a local⁣ agent. It’s required by law. They manage all paperwork for you.

Even with a local⁢ shareholder, he hasn’t direct control nor you need to share profits. Usually you just pay︀ a fix rate per year. To cover your control a deed is lodged at court.︁

 

[Davis123]

I think personal visit‍ is the best option. Plus UAE local partners in an LLC are simply some paid⁠ off partners who are paid every year by you based on a stated amount on⁤ a contract. I have a local partner I am paying every year on my local⁣ business. He does not need to come to your bank even to open up your⁢ account. My father had local partners for decades for his business in UAE. I think︀ once UAE starts a citizenship program if it ever starts it, this would remove the︁ partner option too but then again I doubt citizenship laws would sail that easily as︂ I am sure locals would absolutely hate it as they are making money off foreigners︃ without any work or labour in business partnerships in LLCs. Admin you are welcome to︄ contact me anytime for any help on this.

Yes correctly︍ stated.

Yes but bank accounts for Freezone companies are‌ very difficult nowadays. While Dubai Freezone companies like Jafza etc are easier to get banks‍ interested in them, it's not so easy with other Freezones. It also depends on who⁠ you know so get a good introducer.

Your partner will not be on your bank account︄ so no worries. It just depends on your contract with him. Just not let too︅ much money sit in UAE bank accounts. Best way to do it is to get︆ a bank account in Singapore where you keep most of your money. I think CaptK︇ and others here have some unique ideas too how to manage your tax affairs since︈ it's their field of expertise.

 

[OffshoreResearch]

Thanks for the useful advice regarding UAE companies and I admit I didn't know the‌ local partner had no access to my bank account which's for sure a great thing.‍
I've many options on the table so I'll take some time to think about them⁠ before making the wiser decision.

 

[offshoreavatar]

Can’t you just open a World First, TransferWise or similar account? Why do you need‌ to open one in the UAE?

 

[erni]

Setting up a BVI company owned by a UAE entity may be the most bulletproof‌ solution. The big question is if you are able to get any bank account opened‍ anywhere as it look right now with the current situation in the world.

you want to avoid taxes, that's⁣ not possible that way.

 

[offshoreavatar]

Oh right⁤ I don’t know if I’m being naive here or just not understanding correctly maybe. But⁣ if you use flag theory type approaches correctly you don’t have to avoid / do⁢ anything illegally.
Also how does a UAE company owning a BVI company help?