Goodbye to Dubai and all UAE Banks friendliness?

[petal355]

Thanks 234, golden and Konstanz for the discussion.

In my example :

The idea is to︁ respect the 183 days+ presence and have a real long term rental in the uae,︂ as well as proofs as daily food delivery orders that show that you actually live︃ there. To respect that honestly on this point.

However you opened a freezone in the︄ mere purpose to get a visa, you conduct all your activities throught your physical person(day︅ trading/investment). Or for some reason you just cannot get a bank account for your FZ.︆ Thus you wouldnt be able to grant yourself a salary and obtain that certificate. From︇ that discussion I understood that this tax residence certificate is neither enough, neither necessary to︈ avoid problems from your citizenship country.

So from what Konstanz says it seems it is︉ enough to simply live 183+ days in uae, avoid to trigger tax residence in your︊ high tax citizenship country (own nothing there and dont come more than a few weeks︋ per year on holidays per year). Then even if you become a person of interest︌ and do not have a salary/ dividend/ active FZ for the reason aforementionned in uae︍ and do not get the tax res certificate you are safe from your citizenship country︎ ?

 

[Fred]

@petal355

With the things mentioned from you I have in a half decade never seen‌ that a local UAE bank wouldn't open a Business Bank Account for the Freezone Company‍ you own.

Even with ultra high-risk passport from Iran you can arrange this for the⁠ mentioned scenario from you.

My personal advise for you is don't escalate the things too⁤ much in theory and don't forget to enjoy life - what you have mentioned is⁣ already more then enough.

 

[Davis123]

This is real but I think UAE will also try︂ very hard to keep it as it is as they know this is the only︃ attraction they have and they can't let go of their business model. Corporate taxes might︄ be something they can think of due to their own economy suffering but presently it︅ will be like committing suicide. I think it's simply common sense for EU and other︆ nations with strict tax laws to move to UAE full time and simply trying to︇ cheat the system as it's not going to work forever.

 

[Konstanz]

Of course they will do︀ everything to keep the same model. I am sure it will stay few years. But︁ anyway, you should worry not about UAE changes, but about investigations by home country

 

[Martin Everson]

UAE is weak on the international stage its no Saudi let alone even a Qatar.‌ It will be the whipping boy for the major nations as they chase tax cheats.‍ They will do whatever the EU or US tells them to do. And it could⁠ happen overnight with a pen stroke as thats how the dictators...sorry rulers do business down⁤ there....lol.

 

[Davis123]

I have nothing to worry dear⁠ as my everything is legit being a us citizen. 🙂. They know I am living⁤ here as I file everything every year and put up with their BS too.

 

[Kakarot]

Fred, you say General Trading is deemed high︋ risk by the banks?

So that means you won't incorporate e commerce businesses?

Like if︌ we buy products from asia, trade them to europe -- that's high risk and you︍ wouldn't take on a client like that? And it would be risky to have a︎ corporate transactional bank account in UAE for this kind of very common e-commerce business?

 

[Fred]

We incorporate a⁤ lot of E-Commerce business and use a specific business activity code for it that explains⁣ the activity in detail.

General Trading needs to be used with some small emirates like⁢ Fujairah but with Dubai Freezone you have detailed business activity code.

That's the way to︀ go otherwise if you choose General Trading you need to bring 1m$ and a business︁ track record with you that the bank is willing to open an account for you︂ because the wording of General Trading is simply too weak - could be literally everything︃ and because of that the banks want to see much more paperwork.

 

[Kakarot]

Sorry Fred, I don't understand clearly. Can you elaborate please and be more specific?

What business activity code would we use in this case?

How much does it cost to‌ form a company in Fujairah? I wouldn't be able to use the Dubai silicon free‍ zone for a general trading company?

If I have to use Fujairah zone -- is⁠ that zone ok for getting corporate transactional bank accounts?

thanks for further details -- I⁤ would imagine a lot of your potential clients are trade businesses of some kind, and⁣ selling goods from one country to another -- so this might be crucial info for⁢ them.

 

[Fred]

No it's not.

Fujairah with Flexi Desk and General︁ Trading without 1$m in funds and business track record will lead to simply don't get︂ any business bank account in the UAE.

You can send an E-Mail to [email protected] and get things setup right or you live with the fact that you limit yourself with︃ your mentioned setup to overcharging EMI's that try to rip you off.

 

[4br]

Have you tried⁣ Mashreq Neo Biz?

There are a few banks that take small businesses. I have guesses⁢ the government has shepherded these into existence.

I have a Mashreq Neo Biz account and︀ it was very quick to setup. Only issue is that Mashreq require you to have︁ an office or a personal address. No hotels. They do however, let you sign a︂ letter to say you will have one within 90 days.

Their KYC was very light︃ and I've not had issues moving in XX,XXX sums.

Another is RAKBANK. They went through︄ everything with a fine comb, which included going through all the stock trades I did︅ in my old company that had nothing to do with trading. Most of my trades︆ were medical marijuana stocks or crypto ETNs.

I am based in DMCC. I chose that︇ because I didn't want to get stuck in a situation where I could not get︈ a bank account.

As for the title of this thread. I get regular emails from︉ DMCC. Some were not good. There were some about ESG (environmental, social, governance). This is︊ a scam being foisted by the OECD, WEF and the rest of the mafia. They︋ are going to use it to regulate small business out of existance, because they can't︌ hire enough blacks, women and throw enough money at Al Gore's gas tank as he︍ gives a lecture about global warming or whatever they call it now. Also got the︎ ones about AML, but it's only for certain companies like gemstones.

 

[petal355]

Can you use the company as a mere⁠ visa provider and let it inactive without business bank while getting the residence for yourself⁤ and trade only on your name.

1) will the uae bank let you open and⁣ maintain personnals account if u dont get salary effectively transferred (inactiv fz) and without initial⁢ deposits, without obfuscating origin for 5-6 figures.

2) will you be able to open offshore︀ online bank as swissquote to cashout crypto without obfuscating some 5-6 figures as a newly︁ resident of uae without questions from the SQ or whatever Seba bankera on your previous︂ residence or do you have to wait years ?

3) if yes will you be︃ able to invest it later to stocks etc on IB or it wont be possible︄ ?

4) will the uae bank question deposit from online bank in your name to︅ ur personnal uae bank if its the same name for 5-6 figs ?

5) if︆ its necessary to use organicly your company and grant you a salary can you simply︇ lend your own crypto to the company and use it to pay a salary then︈ without any workaround

 

[Michaelpitt]

I have not tried it. I will try them when I︊ visit UAE again.
What documents did RAK asked? Did they ask office or personal address?︋

Did DMCC Fz made it any better to get bank accounts? or you got hold︌ of them without any lease certificate or ejari, or utility bill?

 

[Nasters]

Interesting questions, waiting for the answer from @Fred

 

[CoffeeCherryTea]

Leave this here UAE to allow investors full ownership of companies from June 1

 

[CaptK]

Have you seen the minimum investment that you have to put‍ down?

Lowest listed investment AED 7M approximately $2M!!!

So you need to show that in⁠ the bank first and then you will have to demonstrate how that was spent it.⁤

They know what they are doing, this is to encourage people with millions.

 

[Golden Fleece]

Honestly, the fact that the country previously had such anti-captialist restrictions‍ on businesses is a good reason to stay away from the country. What a government⁠ can grant, it can also take away. When will people ever learn? A nation's (or⁤ person's) past history is often a reliable indicator of their future conduct.

 

[CaptK]

You can open a personal Bank account and hope the⁣ bank don't ask about salary.

If you have︂ not made a deposit into your exchange from your bank account. Your funds will be︃ blocked if you send from the exchange.

Yes they will ask, and want proof. If it's a proper bank account and︈ not a broker then bit by bit.
How do you intend on seeding the bank account. You can not tell︋ the bank it was a capital contribution in BTC.

 

[Dandyline]

Source where the minimum investment requirement is stated?

 

[mike400]

Hi, can you share your banker's contact who opened your business account⁤ at Rakbank? I'm trying to open an account there for almost 2 months with no⁣ luck...