3 months to open company bank account': Zerodha's Nikhil Kamath shares the difficulty of doing biz in Dubai

[troubled soul]

'3 months to open company bank account': Zerodha's Nikhil Kamath shares the difficulty of doing biz in Dubai
https://www.businesstoday.in/entrep...culty-of-doing-biz-in-dubai-380121-2023-05-05

 

[stronco]

Now tell him about CH

 

[Spinat]

Without doubts, businesses from India have their fair share of troubles to make business almost anywhere unless everything is duly incorporated and transparent. Dubai is not an exception here!

 

[algotrader]

To start a business there and earn money is very difficult

This seems to be the case for many low tax places. You have the same problems in Bulgaria or Cyprus. There is a lot of marketing focusing on the aspect of low taxes but if you cannot even open a bank account for your business or cannot use it then having low taxes will be irrelevant because you won't have any revenue. The more complex your business is the more difficult it will be to run it in these places.
Business owners in Dubai will have a lot of trouble finding qualified accountants and auditors going forward. Since there haven't been any audit requirements until now you don't have enough established accounting businesses and if you are lucky enough to find one they will ask for astronomical prices.

 

[Dasilva]

This seems to be the case for many low tax places. You have the same problems in Bulgaria or Cyprus. There is a lot of marketing focusing on the aspect of low taxes but if you cannot even open a bank account for your business or cannot use it then having low taxes will be irrelevant because you won't have any revenue. The more complex your business is the more difficult it will be to run it in these places.
Business owners in Dubai will have a lot of trouble finding qualified accountants and auditors going forward. Since there haven't been any audit requirements until now you don't have enough established accounting businesses and if you are lucky enough to find one they will ask for astronomical prices.

Cyprus maybe yes but Bulgaria is one of the easiest to open with the big banks here like DSK, Postbank and Fibank, even with unicredit and ubb its possible. Just walk in any branch in the city and you will succeed.

 

[algotrader]

Cyprus maybe yes but Bulgaria is one of the easiest to open with the big banks here like DSK, Postbank and Fibank, even with unicredit and ubb its possible. Just walk in any branch in the city and you will succeed.

Lol, most local banks here in Bulgaria now ask foreigners to give PoA to a Bulgarian citizen in order to open a corporate bank account (I know it was easy a few years ago, but it is not anymore). Most won't accept applications done solely by foreigners anymore (even when they have a BG residence permit and have lived here for years). So, most expat entrepreneurs I spoke to now use foreign EMI's with Bulgarian IBAN instead or they open a Bulgarian one with PoA only for the 1 EUR capital and for paying taxes but then use another EMI for their main corporate banking.

 

[JohnLocke]

Don't it all comes to the individual business case like in any other country?

I mean, if you come to Bulgaria, start a 1 EURO company and rent some shady place somewhere and after that going to the bank and ask them to open a bank account......well that must go wrong.

 

[Dasilva]

Lol, most local banks here in Bulgaria now ask foreigners to give PoA to a Bulgarian citizen in order to open a corporate bank account (I know it was easy a few years ago, but it is not anymore). Most won't accept applications done solely by foreigners anymore (even when they have a BG residence permit and have lived here for years). So, most expat entrepreneurs I spoke to now use foreign EMI's with Bulgarian IBAN instead or they open a Bulgarian one with PoA only for the 1 EUR capital and for paying taxes but then use another EMI for their main corporate banking.

I’m not agreeing with you, I live here right now in Sofia(for many years already) as a western person, and everybody I speak with (foreigners) don’t have any difficulties what you speaking about. I don’t say some people get denied opening, for sure this will happen but there allot of banks here and for sure one of the top 5 will open. Till now Bulgaria is still the hidden gem if you willing to pay 10 precent tax . Get a good lawyer / accountant and you will find no problem.

 

[algotrader]

Get a good lawyer / accountant and you will find no problem.

That's another point. I'm finding myself here without any accountant who can do my income tax declaration for last year. I came to BG mainly because of a new law they introduced in 2021 that exempts capital gains realised with shares on "regulated exchanges" from taxation. The first accountancy I contacted (a large one in Sofia that deals with foreigners) has newer heard about that law and offered me a sole trader setup for 4000€ per year. I asked them how they would book my trades (long vs. short positions, regulated vs. non-regulated exchange profits) but they were not able to answer, even not for a consulting fee. Knowing that I would end up paying more tax than necessary with them, I passed my way.

I then onboarded with another one that appeared a bit more competent and agreed to register me as a ST and do my monthly/yearly tax returns. But then they faced some problems with registration they couldn't explain and completely stopped replying to my emails after I sent them my broker statement. This is very typical for BG businesses, about 80% of accountancies I contact don't reply. Or they reply to say that they cannot oboard more clients. Or they offer to do a personal income tax declaration instead of the ST one (which means for me that I would pay much more tax because of a different tax base).

Of course, if you have a very simple business (such as freelancing) chances are much higher that you won't face any problems.

 

[Fred]

That's the reason why we are around

 

[JimBeam]

My guess is that UAE is one of the most welcoming places for people from India, including entrepreneurs
A random guy I met in Dubai (Indian expat) helped me open a bank account in Dubai last year in one of the biggest banks.

The opening did took 2-3months.