Algo CFD/Forex Trading setup in Dubai/Abu Dhabi

[neverloggedin]

Hi all,

I have a working algorithmic strategy based on Forex/Gold CFDs which has been giving me good gains after years of testing. Now I want to utilise the tax-benefits of Dubai or Abu Dhabi to set up a company there instead of my home country (UK).

I have a person there as a Dubai citizen/local partner who I can utilise to set up the company. I want to set up a mainland company as I want the company to do Algo trading using popular ECN brokers as well as provide IT consultancy services to other Dubai firms.

My question is
1. if this possible
2. When setting up a company, presumably I need to provide a purpose of the business activity to get a license e.g. Professional license?. Can I provide 2 different business activities (algo trading and IT consultancy) and what is the license this falls under?
3. Do I need a trading license of some sort? I'm not a broker but I will be dealing with ECN brokers like Pepperstone/ICMarkets/FP Markets.

Any other things I need to be wary of?

Thanks for all the help in advance.

 

[petal355]

Simple question for the experts :
Can you just open a dummy freezone which will remain inactiv and let the bot trade your own personnal funds professionally but without tax as it will be your personnal account balance and you would be tax resident there ?

The broader question is can you trade professionally from Dubai your own funds online without doing so under a licenced company ?

 

[Thepopo]

Simple question for the experts :
Can you just open a dummy freezone which will remain inactiv and let the bot trade your own personnal funds professionally but without tax as it will be your personnal account balance and you would be tax resident there ?

The broader question is can you trade professionally from Dubai your own funds online without doing so under a licenced company ?

I don't think you need of licence if you don't provide service to other people. But it has to be confirmed, that's not my speciality.
But what you propose is a bad idea. your broker is going to send reports to taxman of your own country, and since you have no employee or substance, they will consider that your company is tax resident of your home country. Just let it sleep and the bot running is the best way to have problems in few years (and in some countries like Belgium such structures are not taxed under corporate tax but under personnal income tax)

 

[petal355]

I don't think you need of licence if you don't provide service to other people. But it has to be confirmed, that's not my speciality.
But what you propose is a bad idea. your broker is going to send reports to taxman of your own country, and since you have no employee or substance, they will consider that your company is tax resident of your home country. Just let it sleep and the bot running is the best way to have problems in few years (and in some countries like Belgium such structures are not taxed under corporate tax but under personnal income tax)

I am not sure you got me.
I was meaning to do all the trade as an individual (without licence and not under the company), but instead as an individual which actually moved his personnal tax residence to UAE, just trading under his own name, his own balance, with a lot of orders, volume, and algos, behaving as a professional. (The FZ being here only to get the sponsor but not used for trading)

 

[neverloggedin]

Simple question for the experts :
Can you just open a dummy freezone which will remain inactiv and let the bot trade your own personnal funds professionally but without tax as it will be your personnal account balance and you would be tax resident there ?

The broader question is can you trade professionally from Dubai your own funds online without doing so under a licenced company ?

Hey sorry but this wasn't my question at all. My questions are to do with mainland companies and doing dual activities. I'm not interested in freezone companies.

Could you please open a new topic with your question?

 

[anubis211]

Check out this activity in DMCC (Dubai Multi Commodities Center) which is a free zone

Trading in FX, OTC and Exchange Traded Derivatives on its own behalf with counterparties which are regulated by authorities deemed acceptable by DMCC​

 

[troubled soul]

My question is

1. if this possible

Yes

2. When setting up a company, presumably I need to provide a purpose of the business activity to get a license e.g. Professional license?. Can I provide 2 different business activities (algo trading and IT consultancy) and what is the license this falls under?

There are so many free zones. You have to choose very carefully which suits you. One company can more than one business activity. but You have to pay a fee for each license. (under license, you may add up to 6 activities if they all start with the same 2-digit code (ex: 51xxxx) and have the same license type)

3. Do I need a trading license of some sort? I'm not a broker but I will be dealing with ECN brokers like Pepperstone/ICMarkets/FP Markets.

Yes, Company registration Includes the license.
ECN brokers like Pepperstone/ICMarkets/FP Markets only works which Personal account. As fas as I know most of the retail fx broker does not accept Business/Corporate client. Do proper research before making any move.
If you just want to tax-free trading and IT Freelance service. Better to move to Dubai with a freelance visa. You can get more info here (GoFreelance).
For small amount, Company registration, Circus does not worth the effort.

 

[bluegiraffe]

My question is

Yes


There are so many free zones. You have to choose very carefully which suits you. One company can more than one business activity. but You have to pay a fee for each license. (under license, you may add up to 6 activities if they all start with the same 2-digit code (ex: 51xxxx) and have the same license type)


View attachment 2608

Yes, Company registration Includes the license.
ECN brokers like Pepperstone/ICMarkets/FP Markets only works which Personal account. As fas as I know most of the retail fx broker does not accept Business/Corporate client. Do proper research before making any move.
If you just want to tax-free trading and IT Freelance service. Better to move to Dubai with a freelance visa. You can get more info here (GoFreelance).
For small amount, Company registration, Circus does not worth the effort.

i'm wondering if this licence allows crypto trading as well?

 

[troubled soul]

i'm wondering if this licence allows crypto trading as well?

They have a solution for it also
You check here
https://landing.dmcc.ae/cryptocentre

 

[shubhankarch01]

@azb1 do they assist with a bank account
as everything ends up in that particular question

I am in the same situation and with a $$$$ budget am bothered if any temporary solution is possible, bigger problem being establish a bank account as an fx trader

 

[shubhankarch01]

I couldnt edit the message
I just had a chat with turnerlittle who suggested a
- Belize company + BVI bank including a negotiated initial deposit of med $$$$

What are the possible downsides ?

 

[troubled soul]

@azb1 do they assist with a bank account
as everything ends up in that particular question

I am in the same situation and with a $$$$ budget am bothered if any temporary solution is possible, bigger problem being establish a bank account as an fx trader

Dear with small amout dubai is not worth it.
And dmcc crypto license is not for bank opening solution.

 

[shubhankarch01]

thanks @azb1 , so I count it out for the time being

 

[bamboozlethemall]

An interesting topic. I still don't understand what to do with taxes if I move to a more favorable tax zone? To continue to transfer them to the tax authorities of my country? I have also been trading for a long time; now, I have studied trading on earnforex.com, and of course, I would like to pay taxes and keep more money for myself. Moving to the UAE seems tempting, especially since my friends live in Dubai and I like to go there on vacation. A beautiful country, in my opinion. But the tax system in case of relocation is entirely incomprehensible to me.

Why is it so incomprehensible get your emirates id here open bank account,trading account stay in uae for 183 days and tell your home country to f**k themselves as they ain't gonna f**k your a*s anymore with their taxation tool. If you need a setup here let me or @Fred know.