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After some time: New company formation

thirtyniner

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Sep 6, 2020
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Dear All,

It has been a few months since the last time I visited the forum. No big issue, just stuck with work from day to day routine in an industry.

Well, getting straight to the point.

I'm an European citizen who has companies in Europe, but also has a company in Hong-Kong for 7 years. This company in Hong-Kong is a regular trading company for raw-materials and other consumable goods (typically business - Buying in China, India or Pakistan and selling in European countries), but also serves to receives commissions on businesses where we play as agents. The company has 2 bank accounts on high street banks perfectly settled and working (and complying with everything locally required), and I also own a private bank account over there.

Over the last few months, with China becoming closer to get control over Hong-Kong (besides the huge Lobby that is being made by European and American democracies), I'm afraid they will start blocking accounts from foreigners, starting, off course, with the small fish.

Before I stopped using the forum, I was already looking to have another alternative to Hong Kong to establish a company, open a standard bank account, and eventually get a visa/passport from that location. By that time, I excluded Caribean countries because of shady banking system or exposure. I also excluded Estonia because of "proximity to Europe's CRS". I excluded African countries because of the same reasons I excluded the caribbeans. Well, I excluded US off-shores because besides they have a different reporting system (which is good), I'm not used to travel there in case it is needed. So, I was left with 2 options:
- Singapore;
- Dubai (and all the other emirates and special zones around it).

Both of them are also good for me, once I travel very often to Far-East and Middle-East. Both of them, specially Singapore, is a well established off-shore regime like Hong Kong.

I already have the 2 vaccines from Pfeizer, but would prefer if I can handle everything without travelling (but this is not a requirement, as I can perfectly travel on the months to come if I don't have to stay on mandatory quarantine for 15 days at the arrival).

One of my requirements would be the ability to transfer (income or outcome) from Hong Kong, and be able to make transfers to Crypto Trading Houses (Kraken for example).

Which and why would you choose, in my situation, any of those?

Thanks in advance for your information.
 
You are mentor group gold member now, so I would suggest you to contact some of the guys as @clemens already suggested.

There are guys around here that really know their stuff and can help with most of the complicated setups, the mentioned above are some of them.

You may also consider @James Turner and his team as well as @CyprusLaw
 
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Hi @thirtyniner ,

you already mentioned everything very well to yourself and the good thing I'm missing most of the time from people asking questions is that you mention exactly what you want to achieve - but much more important - what you don't want.

So it's between Singapore & Dubai (UAE).

First of all you can be happy that you still have some HK Bank Accounts up and running but you can be sure that once they are closing down you won't be able to open new Business Accounts with local HK banks - they are even no longer really keen to open new Personal Accounts.

While you are keep paying taxes, accountants and a lot of bureaucracy with Singapore - you can get rid of it by relocating the Business to Dubai (UAE).

If you have actually in HK everything in place that is required - you are paying not less in taxes, accounting, local directors with office etc. - this won't change by relocating the Business to Singapore - even to achieve the Residence will be harder in Singapore then you know it from HK.

With Dubai (UAE) you will get rid of any taxes, accounting & bureaucracy like you know it from HK and the Residence Visa is setup straightforward within a week once the company is setup. The only requirement you have is to be every 6 month at least 1 day to the UAE to keep the Residence Visa active.

Setup costs will be equal in both jurisdictions.

Considering taxes, accounting and bureaucracy as well ongoing costs and ease of setup it's clearly Dubai (UAE) as the business how you mentioned it is independent from the Jurisdiction of the Incorporation itself.

Everything else would then be only personal preferences what you have to decide for yourself.
 
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Hi @thirtyniner ,

you already mentioned everything very well to yourself and the good thing I'm missing most of the time from people asking questions is that you mention exactly what you want to achieve - but much more important - what you don't want.

So it's between Singapore & Dubai (UAE).

First of all you can be happy that you still have some HK Bank Accounts up and running but you can be sure that once they are closing down you won't be able to open new Business Accounts with local HK banks - they are even no longer really keen to open new Personal Accounts.

While you are keep paying taxes, accountants and a lot of bureaucracy with Singapore - you can get rid of it by relocating the Business to Dubai (UAE).

If you have actually in HK everything in place that is required - you are paying not less in taxes, accounting, local directors with office etc. - this won't change by relocating the Business to Singapore - even to achieve the Residence will be harder in Singapore then you know it from HK.

With Dubai (UAE) you will get rid of any taxes, accounting & bureaucracy like you know it from HK and the Residence Visa is setup straightforward within a week once the company is setup. The only requirement you have is to be every 6 month at least 1 day to the UAE to keep the Residence Visa active.

Setup costs will be equal in both jurisdictions.

Considering taxes, accounting and bureaucracy as well ongoing costs and ease of setup it's clearly Dubai (UAE) as the business how you mentioned it is independent from the Jurisdiction of the Incorporation itself.

Everything else would then be only personal preferences what you have to decide for yourself.

Thank you so much for your feedback! We can discuss further by PM.

Regarding HK, I have some expertise on this market, and I can actually still open accounts both company's or private's. Before COVID I was used to spent 3 weeks per year over there, and became very familiar with a lot of people with good positions within banks and other financial institutions.
 

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