your own UAE company - pay yourself a salary?

[PhantomOf ThePits]

Hi,

from your experience living in the UAE on an investor visa (your own company will be your sponsor) I have question:

- Is it better to pay yourself a salary from your own company so that everything 'looks better' to NormalJoeSixPack in the banks? Because in their way of thinking someone with a salary may be considered more 'normal' vs someone who just gets money from somewhere irregularly and lives nomadically?

- If you pay yourself a monthly salary, whats the average cost on top of the salary you pay yourself from your experience?
I assume you'd need to register in some places etc, but maybe for substance purposes it looks more clean/'normal'.

- Or do you just have your shell UAE Co which is your Visa sponsor but you dont really use this Company?

I'd be happy to hear your thoughts on the topic. Thank you

 

[Fred]

Hi,

people tend to live in a bubble when it comes to banking in the UAE.

In practice you can pay everything from your Business Bank Account.

However in case you want to bank one day with let's say a Switzerland Private Bank you will face problems during the Due Diligence of your funds.

Because of this we mention our clients always to pay a monthly salary and higher amounts as a dividend payment. You can do this freely on your own whenever you like. Just use salary or dividend as reference of the transfer.

What we see is that many people opt for a Personal Credit Card that requires some minimum salary to be paid - that's the only thing were it matters if and how much you pay yourself as salary.

 

[troubled soul]

1)Doubt one

What precaution one should take to avoid Due Diligence?

Let's say ,I earn $2 Million in my business account from merchant account.
Can I transfer $1.75 to my personal account in first month?
Or I should avoid his practice ?

2)Doubt two

If someone does not want Swiss private banking , and He Buy Third party low cost mutual fund from local bank,
If something bad happen to local bank, You are safe because It is third party mutual fund.
Am I right?
Is this practice advisable?



Thanks

 

[JustAnotherNomad]

@Fred
Is a salary just a regular bank transfer? I always thought that it was coded in some special way in the system since most banks require either a minimum salary or minimum balance to waive the monthly fees for personal accounts.
Aren't there other implications with a salary, too? What about that wage protection system? Isn't their some sort of registration done for salaries, so employees can claim some sort of "final payment" if they are fired after many years?

 

[Fred]

@Fred
Is a salary just a regular bank transfer? I always thought that it was coded in some special way in the system since most banks require either a minimum salary or minimum balance to waive the monthly fees for personal accounts.
Aren't there other implications with a salary, too? What about that wage protection system? Isn't their some sort of registration done for salaries, so employees can claim some sort of "final payment" if they are fired after many years?

You mention the very bureaucracy way how bigger company are doing it. Using the WPS of a Bank and issuing Salary Certificate and so on. As most of our clients have a one man show all this is not required really.

 

[JustAnotherNomad]

So there is no need to do it that way to meet the "minimum salary" requirements of a bank?
Why would you have to pay a salary at all then, can't you just pay everything as dividends?

 

[Fred]

So there is no need to do it that way to meet the "minimum salary" requirements of a bank?
Why would you have to pay a salary at all then, can't you just pay everything as dividends?

Only if you opt for a personal Credit Card that requires min. Salary income otherwise you can do it like mentioned by you.

I need to add we alsways open both Business & Personal Account together in same bank so it's not a big deal anyway and very straightforward if they see it's a one man company.

 

[miosgit]

Only if you opt for a personal Credit Card that requires min. Salary income otherwise you can do it like mentioned by you.

I need to add we alsways open both Business & Personal Account together in same bank so it's not a big deal anyway and very straightforward if they see it's a one man company.

I thought that as a resident (no UAE / GCC national) I should pay Social security on my own salary and therefore issue a payroll. Isn't this the case? (I just opened a company in a free zone)

 

[Fred]

I thought that as a resident (no UAE / GCC national) I should pay Social security on my own salary and therefore issue a payroll. Isn't this the case? (I just opened a company in a free zone)

Social Security in the UAE?

There is no social security - pay your bills and have the money in place or you have to leave the country.

 

[miosgit]

Social Security in the UAE?

There is no social security - pay your bills and have the money in place or you have to leave the country.

Well, Social security in Dubai is mandatory for UAE and GCC employees.
Btw it seems that for residents is not. Thank you for your answer.

 

[I'mRobot]

There is no social security - pay your bills and have the money in place or you have to leave the country.

And what if you need to go to hospital? You have a to get an insurance or pay in Cash ?

 

[freeburgher]

And what if you need to go to hospital? You have a to get an insurance or pay in Cash ?

To my knowledge employee health insurance is mandatory in most Dubai freezones

 

[miosgit]

Health insurance is mandatory yes.

 

[Fred]

And what if you need to go to hospital? You have a to get an insurance or pay in Cash ?

Exactly.

Health insurance is mandatory yes.

That's correct however the basic incurance which is sufficient to get the Residence Visa approved is nothing what gets you far while visiting a doctor or hospital.

 

[miosgit]

Exactly.



That's correct however the basic incurance which is sufficient to get the Residence Visa approved is nothing what gets you far while visiting a doctor or hospital.

Interesting. Can you tell me more? I'm landing in Dubai in the next days to finalize residence visa and I need to get an health care. I need a quick and easy one as I will do a proper one for all my family when I'll move there a couple of months later.

 

[Fred]

Interesting. Can you tell me more? I'm landing in Dubai in the next days to finalize residence visa and I need to get an health care. I need a quick and easy one as I will do a proper one for all my family when I'll move there a couple of months later.

Your Service Provider should be able to assist.

 

[JackAlabama]

Interesting. Can you tell me more? I'm landing in Dubai in the next days to finalize residence visa and I need to get an health care. I need a quick and easy one as I will do a proper one for all my family when I'll move there a couple of months later.

For anything decent, you will first and foremost need a fat stack of cash to get the treatment you want, and that fast.

For insurance, theres a mil options out there, you need to find what you need for your individual situation.

 

[miosgit]

Thanks.

Well, I'm moving from USA, Calfornia..here the health care costs at least 2 times the price of UAE..so I'll save money for sure XD
I just wanted to do a quick short-term one before moving definitely with my family.