Question Best Company Structure and EMI/Bank account for international e-commerce in UAE

[Iskillz94]

Hello everyone,

I moved to the UAE almost 1 year ago now and I have my company here where I work on my online business (mainly e-commerce).
The problem is that my clients are mainly individuals living abroad but not in the Middle East. The payment services available in the UAE (including Stripe or Checkout.com) are not really suitable for international sales as the payment methods available are very limited. When selling online abroad, it is quite important to be able to offer popular local payment methods (AMEX, JCB, dinner's club,...) but these payment methods are not available for UAE, not to mention the much higher fees. It is also important for me to be able to accept payments (and payouts) in multiple currencies which is not always available here.

Since I currently use Shopify, the best solution would be to be able to use Shopify Payments, which as you probably know is only available in certain countries (not the UAE). I wanted to know if a set-up with an LTD/LLP in the UK (or even an LLC in the US) could be interesting in my situation. I wouldn't mind paying taxes on my local sales (in the UK or US) but since I'm in the UAE (0% tax), I would find it stupid to have to pay taxes on all my profits from my worldwide sales while having a company and living in the UAE.
I was considering setting up an LLP in the UK (UK agency company) that would act as an agent for my UAE company: in exchange for a certain %, it would act as an agent that receives my sales on its Shopify Payment account on behalf of the UAE company. So technically I would only have to pay taxes on the profits of that company rather than on all the sales. Is this a feasible solution? Or are there other similar setups that might be useful in my situation?
It is actually possible that Shopify Payments rejects an LLP (whose shareholders are both non-resident), so is there a similar setup with Ltd? Since I live in a 0% tax country, is it "acceptable" to take out a large part of the profits as a salary to lower the taxes? Or will salaries for non-resident employees/directors also be taxed in the UK?

Finally, my last question is to know if it is ever possible to have access to local IBAN (in EUR, GBP and USD) with my company in the UAE? Since Wise is no longer available in the UAE, are there any other financial companies that can provide this type of service for a UAE company? Because I also work with companies in Europe/USA and I would like to be able to accept payments by automatic bank transfers or direct debit.

I have already done a lot of research but the answers I find remain vague and every time I look for a lawyer, he is not really qualified for such international issues, so if you also have some competent law firms to advise (that are not going to take 1000€/hour for a consultation), I am a taker.

Thank you in advance for your help!

 

[clemens]

take a chat with @Fred

 

[Iskillz94]

take a chat with @Fred

If you have information on any of my questions, I'll be happy to discuss it @Fred !

 

[CaptK]

This is a structure I would be happy to discuss with you.
A UK LTD would be perfect for you as an intermediary. You will require a UK resident to open the necessary PSP’s.

 

[Iskillz94]

This is a structure I would be happy to discuss with you.
A UK LTD would be perfect for you as an intermediary. You will require a UK resident to open the necessary PSP’s.

I will be happy to discuss this, can you PM me or should I contact you on Telegram?

This is a structure I would be happy to discuss with you.
A UK LTD would be perfect for you as an intermediary. You will require a UK resident to open the necessary PSP’s.

What type of structure would keep taxation to a minimum? If the Ltd is an intermediary for only one company, won't that be problematic? @CaptK

 

[uplana]

If you have someone professional to help you with the UK LTD taxing and structuring you can let the UK LTD be a payment provider and only get taxed if you leave 2 - 5% in this UK LTD.

 

[sujoe]

Try looking at an US LLC too. You don't need two partners to setup the LLC, unlike the UK LLP.

 

[Iskillz94]

If you have someone professional to help you with the UK LTD taxing and structuring you can let the UK LTD be a payment provider and only get taxed if you leave 2 - 5% in this UK LTD.

Do you know where can I find one? Any law firm in the UK which can help for that kind of structure? I have trouble finding good lawyers...

I assume that it would be better not to be the director of the UK ltd too (for transfer pricing issue).

Try looking at an US LLC too. You don't need two partners to setup the LLC, unlike the UK LLP.

Yes the US LLC can also be an option but I prefer not to have direct links with the US and the IRS if possible. Banks can be reluctant to open accounts for people with U.S. ties + payment services must automatically report transactions received. If I have most of my customers in the U.S., if I ever have suppliers or stock there, it could get complicated. The business could be fully taxed in the U.S. depending on how the U.S. tax authorities decide to treat it (Etob or non Etob etc).

 

[BlueMist]

Finally, my last question is to know if it is ever possible to have access to local IBAN (in EUR, GBP and USD) with my company in the UAE? Since Wise is no longer available in the UAE, are there any other financial companies that can provide this type of service for a UAE company? Because I also work with companies in Europe/USA and I would like to be able to accept payments by automatic bank transfers or direct debit.

https://www.ebury.ae

 

[Iskillz94]

https://www.ebury.ae

I did not know Ebury, seems great thank you!
Do you know more about their pricing?

 

[CaptK]

Try looking at an US LLC too. You don't need two partners to setup the LLC, unlike the UK LLP.LLP

LLP wont work and will be hard to get a PSP to work longterm.

If you have someone professional to help you with the UK LTD taxing and structuring you can let the UK LTD be a payment provider and only get taxed if you leave 2 - 5% in this UK LTD.

Yes the company purely serves as an agent to collect payments on your behalf for a fee. Then the company will be taxed on the profit from that fee.

I will be happy to discuss this, can you PM me or should I contact you on Telegram?



What type of structure would keep taxation to a minimum? If the Ltd is an intermediary for only one company, won't that be problematic? @CaptK[/USETelegram
[/QUOTE]
Yes, Telegram details in the signature. It wont be an issue its a common structure for access to new markets.

 

[BlueMist]

I did not know Ebury, seems great thank you!
Do you know more about their pricing?

See here , not sure if the the pricing changed or not. Basically in one time setup fee you get AED and USD accounts, any other currency is AED 4000 one time setup. They held accounts with Barclays and Citibank. They did not have local AED account, their AED account was held with Barclays London.

 

[startfleetio]

Do you know where can I find one? Any law firm in the UK which can help for that kind of structure? I have trouble finding good lawyers...

I assume that it would be better not to be the director of the UK ltd too (for transfer pricing issue).


Yes the US LLC can also be an option but I prefer not to have direct links with the US and the IRS if possible. Banks can be reluctant to open accounts for people with U.S. ties + payment services must automatically report transactions received. If I have most of my customers in the U.S., if I ever have suppliers or stock there, it could get complicated. The business could be fully taxed in the U.S. depending on how the U.S. tax authorities decide to treat it (Etob or non Etob etc).

It is not as complicated as you might think, we have a lot of customers from UAE. Feel free to talk to us on our site.

 

[thirtyniner]

I did not know Ebury, seems great thank you!
Do you know more about their pricing?

Ebury works very well, but they are a pain in the as* in what is related with KYC. You receive 5.000 USD, they deposit on the account and then you receive an email asking you for the invoice on the same. 50% of the income transfers at least.

 

[Don]

Using Estonia could also be a cheap, tax-free option