banking.TOP

Our valued sponsor

EmiratesSetup
SWISSMONEY Iban Accounts with Sepa
EmiratesSetup

Are you thinking of closing your UAE business or already close down after New Corporate Tax ?

Are you thinking of closing your UAE business or already close down after New Corporate Tax ?

  • Yes

    Votes: 38 50.7%

  • No

    Votes: 31 41.3%

  • Already close down

    Votes: 8 10.7%
  • Total voters
    75
#64
dishonestCitizen said:
For anyone interested in costs of closing down, liquidators report is around 1500 AED and IFZA closure cost is another ~3800 AED
Click to expand...
As a former employee of IFZA, here are the costs associated with liquidating the business:

- Visa Cancellation - 500 AED if you are in the country during the procedure, 1300 AED if you are outside
- Est. Card Cancellation - 500 AED
- License Cancellation - 2000 AED
You will however also submit an accounting report, which is not done by IFZA. You would need to find a company yourself, the prices range from 5 to 10k AED.
 
#65
Ancova said:
As a former employee of IFZA, here are the costs associated with liquidating the business:

- Visa Cancellation - 500 AED if you are in the country during the procedure, 1300 AED if you are outside
- Est. Card Cancellation - 500 AED
- License Cancellation - 2000 AED
You will however also submit an accounting report, which is not done by IFZA. You would need to find a company yourself, the prices range from 5 to 10k AED.
Click to expand...
thats an insightful post.
what is that accounting report exactly?
 
#70
jafo said:
@Ancova

What happens if an owner, e.g. no wife, no children, passes away overseas?
What happens then?
What will UAE and others do?
Click to expand...
That is a great question, I am 99% sure I know the answer, but want to doublecheck and will get back to you!

Ancova said:
That is a great question, I am 99% sure I know the answer, but want to doublecheck and will get back to you!
Click to expand...
@jafo I checked with our lawyers and as I though, the company will go to the State of UAE if there is no will.

Other scenario is if the deceased has family. As per the Shariya law in UAE, a non muslim expat which deceased will have his company split according to the Shariya law. That means the wife gets 1/4, the sons 1/4, the daughters 1/8 and the remaining to the brothers. This is why we advise our clients to do a will upon setting up the company, it is a one time cost of AED 25,000 but saves every hassle coming afterwards since the scenario of Shariya law is not ideal in most cases.

You may be thinking what about muslim expats. They cannot have a will in the UAE and their assets will be split as per the Shariya law. In this case what we do is opening a trust in Cook Islands which owns the Dubai company and the assets will be split as mentioned in the trust, even for muslims in UAE.

Hope this helps!
 
Last edited:
  • Like
Reactions: sinos and jafo
#71
Ancova said:
That is a great question, I am 99% sure I know the answer, but want to doublecheck and will get back to you!


@jafo I checked with our lawyers and as I though, the company will go to the State of UAE if there is no will.

Other scenario is if the deceased has family. As per the Shariya law in UAE, a non muslim expat which deceased will have his company split according to the Shariya law. That means the wife gets 1/4, the sons 1/4, the daughters 1/8 and the remaining to the brothers. This is why we advise our clients to do a will upon setting up the company, it is a one time cost of AED 25,000 but saves every hassle coming afterwards since the scenario of Shariya law is not ideal in most cases.

You may be thinking what about muslim expats. They cannot have a will in the UAE and their assets will be split as per the Shariya law. In this case what we do is opening a trust in Cook Islands which owns the Dubai company and the assets will be split as mentioned in the trust, even for muslims in UAE.

Hope this helps!
Click to expand...
But if the company has no assets, no balance on the bank accounts, visa still valid. The person dies and nobody knew about his/her Dubai business so nobody informs UAE? What will they do?
 
  • Like
Reactions: jafo
#76
zzzzzz said:
Is UAE still considered good option for personal tax residency (for investments in brokerage account abroad) or would you consider some other country?
Click to expand...
Either UAE or any other country which doesn't tax foreign sourced income.
Wide choice available.
Of course, nobody knows how things will be next year. Changes are about to come everywhere since all countries need money.
 
  • Like
Reactions: uranium, zzzzzz and jafo
#78
Onassis said:
Why Cook Islands and not some other, cheaper jurisdiction? Do UAE banks prefer it?
Click to expand...
We serve many UHNWI families and do only Cook Islands for them. Here are some reasons"

Building & Managing Generational Wealth Sustainably
  • Preferred trust jurisdiction for high net-worth individuals, wealth management and succession planning
  • Simplifies complex aspects of trust law while preserving the fundamental advantages
  • Introducing innovative and ground-breaking asset protection provisions
  • Asset protection of Cook Islands is recognized as the standard for best protection internationally

• Forced Heirship
Trust or settlement cannot be voided if it defeats heirship rights of related individuals
Settlor's capacity cannot be questioned.
• Bankruptcy
Trust or settlement remains valid in the event of Settlor's bankruptcy in their home jurisdiction.
• Spendthrift Beneficiaries
Interests in trust assets for beneficiaries cannot be alienated, passed by bankruptcy, or seized.
• Common Law Rules
Abolishes rules against accumulations and double possibilities. Trustee has discretion to avoid the rule in Saunders v. Vautier.
• Perpetuity Period
Abolishes Common Law rule against perpetuities
Trust can exist indefinitely or terminate based on specified events or dates.
• Fraudulent Conveyance
Establishes rules for determining validity of transfers and protecting rights of potential claimants.
• Burden of Proof
Limits creditor's access to specific settlement assets, not entire trust fund Creditor must prove intention to defraud within prescribed time limits.
• Foreign Judgments
Cook Islands courts do not recognize judgments based on inconsistent laws. Claims against trust assets must be initiated in Cook Islands court.

A typical Cook Islands Wealth Protection structure has several components allowing both flexibility and protection:
  • Ø TheSettlorestablishesaCookIslandsInternationalTrust.
  • Ø A Cook Islands licenced trustee company provides the
    Trustee.
  • Ø The Settlor and family members can be discretionary
    beneficiaries of the Trust.
  • Ø A Protector can be appointed to monitor the activities of
    the Trustee, and can be granted absolute or veto powers or
    a combination of both.
  • Ø The Settlor can provide a letter to the Trustee detailing
    his/her wishes in regards to the investment and
    distribution of assets both during and after his/her lifetime.
  • Ø The Trust owns 100% of a limited liability company (“LLC”) incorporated in the Cook Islands, or other jurisdiction
    appropriate to the client’s circumstances.
  • Ø The Settlor, or his representative, is the Manager of the LLC.
  • Ø Assets are held and managed within the LLC or entities
    underlying it.
  • Ø The Trustee is not required to be involved in the
    management of the LLC or its assets.
  • Ø The Trustee can be granted power to remove and replace
    the Manager of the LLC in certain circumstances to protect the interests of the Manager and the assets under his/her control
  • Ø The Manager is not personally liable for the debts, obligations or liabilities of the LLC.
  • Ø The Trustee is not subject to foreign judgements or forced heirship rules.
    Screenshot 2023-08-24 at 10.02.47 AM.png

Structuring Options
  • Purpose trust (charitable or non-charitable)
  • Discretionary trust
  • Trust with fixed interest beneficiaries
  • Any combination of the above
    Possible Control Elements
  • Protector
    -Appointed with powers and functions defined in the trust
    instrument
    -Not held liable as a fiduciary, unless stated otherwise in the trust
    instrument
    -Settlor, Trustee, or Beneficiary can serve as the Protector if
    desired
  • Co-Trustee
    -In addition to a licensed Cook Islands trust company, an
    individual or entity can be appointed as a co-trustee -Co-trustee doesn't require a license in the Cook Islands to
    engage in trust company business
  • Retention of Powers
    -Settlor can retain, possess, or acquire certain powers without
    invalidating the Cook Islands International Trust
    -Powers can include: Amending or revoking the trust; Disposing
    of trust assets; Removing or appointing a; Trustee or Protector; Directing the Trustee or Protector on any matter
 
#79
Are you guys turning the thread into Cook Island discussion and advertising now?

I can say that we will keep our current Dubai company as it is in our company network. The 9% corporate tax don't matter at all, it is almost transparent.
 
#80
EliasIT said:
Are you guys turning the thread into Cook Island discussion and advertising now?

I can say that we will keep our current Dubai company as it is in our company network. The 9% corporate tax don't matter at all, it is almost transparent.
Click to expand...
I personally don’t mind the 9% as well. The cook island trust is for HNWI and good for Muslim expats who want to have a will
 
You must log in or register to reply here.
send invoice get paid in multiple currencies!

Forum Announcement

Latest Threads

SWISSMONEY Iban Accounts with Sepa
Offshore Bank Accounts
The KingDom Bank
Top Bottom
Back