Best setup

[Uniquelyunique]

Hey everyone.

I’m looking for best structure, current uae resident

I have a Wyoming llc
Uk Ltd
Uae fz

I work in IT and could not get insurance except through uk Ltd which is requirement for the job and amounts required are outside the norm for OTC in US and uae. Currently working through uk Ltd.

No issue with paying tax and main requirement is for everything to be legal and be compliant. The main problem is in uae life is hard when you are not working through uae company, access to finance is almost impossible while self employed, especially when company has no income. I’m not looking up to set up a very complicated structure or have the same as what all the “suspicious” people have. Previously it was difficult to explain why I set up my structure the way I did while doing nothing illegal and would like to avoid having to convince people.

I want to make everything simple, and what I am thinking is one of the companies (uk or uae) opens a branch in the other, and only work through one, while legally receiving income from the other.

It seems easier to open a branch in uk but they publish too much info for my liking, I don’t like they put birth year, address and all that, but tbh it’s the same in either case.

In uae, the process seems difficult, having to attest everything and 50k deposit to open a branch.

 

[Cloudbanck]

Hey everyone.

I’m looking for best structure, current uae resident

I have a Wyoming llc
Uk Ltd
Uae fz

I work in IT and could not get insurance except through uk Ltd which is requirement for the job and amounts required are outside the norm for OTC in US and uae. Currently working through uk Ltd.

No issue with paying tax

It should be an issue! Don't feed the beast!

and main requirement is for everything to be legal and be compliant. The main problem is in uae life is hard when you are not working through uae company, access to finance is almost impossible while self employed, especially when company has no income. I’m not looking up to set up a very complicated structure or have the same as what all the “suspicious” people have. Previously it was difficult to explain why I set up my structure the way I did while doing nothing illegal and would like to avoid having to convince people.

I want to make everything simple, and what I am thinking is one of the companies (uk or uae) opens a branch in the other, and only work through one, while legally receiving income from the other.

Ok but how about keep the UK Ltd as you work through it and need it for insurance. Then you pay yourself a salary directly from it so it makes little profit.

And close the other two companies simplifying things.

Now the remaining problem is access to credit in the UAE, and possibly how to maintain residency in the UAE. Do you want to buy property in the UAE, is that what you need credit for? You can get an employer of reference in the UAE, then you count as a local employee and get good terms on mortgages and credit in general.

And to maintain residency, you can get a remote worker visa with the income from your UK Ltd, actually a much cheaper way to get visa than having a business or freelancer or via property.

 

[Marzio]

I work in IT and could not get insurance except through uk Ltd which is requirement for the job

Can you get insurance through a treaty non resident UK LTD?

UK LTD will still be see as a UK entity but its tax residency will be UAE so you'll pay UAE CIT instead of UAE's CIT.

 

[Uniquelyunique]

Thanks

The main problem is the insurance, and the uk had the best jurisdiction for that with good pricing per coverage. I got laughed at when I asked for $20m insurance for a sme in the uae.

The employee of record looks complicated, as I work many hours, and not sure an employer would be happy with it, and all the obligations look like a headache.

I have thought about all the suggestions, I think a freelancer is worse than self employed lol based on what I have read. For remote visa, I think it needs a history but my uk Ltd is rather new.

 

[Marzio]

The main problem is the insurance, and the uk had the best jurisdiction for that with good pricing per coverage.

That's why i suggested a treaty non resident UK LTD.

It means a UK company like yours with the only difference that HMRC will exempt you from paying UK taxes because it's tax resident in UAE.

The tax residency status is only known to HMRC and not to other entities so your insurance company will see it as a regular UK LTD.

 

[inector]

That's why i suggested a treaty non resident UK LTD.

What would be the requirements to apply for this?

Is office / director location enough?

 

[Uniquelyunique]

Is that something you apply for, or new company to be created?

As Long as I can get insurance, it sounds good. I will look into it

For the other problem I have, I think uk branch in uae may be the easiest. I am not sure as well what will happen with CIT and foreign managed companies, but this would simplify this greatly, link my visa to the branch, and just keep the one company/branch. Should be one set of financials/ documents to prepare as well.

The thing I didn’t like was it’s unclear how creating a branch works. I am leaning towards a new mainland branch of foreign company and closing uae fz company. It seems most of the benefit of fz is gone, but I can’t tell if a uae national partner is required or not as the info seems contradictory.

 

[Marzio]

I think uk branch in uae may be the easiest

To be approved by HMRC you have to show them that the company is tax resident in a treaty country (in this case UAE), this means that you need to form a branch in UAE, get UAE taxID for the branch and with that TaxID go to HMRC and ask to be exempted from UK CIT because the company is UAE tax resident.

 

[Uniquelyunique]

Based on my reading it can also be automatic based on PE and dta right, even without approval? I imagine this could be different for established existing uk resident companies as they need to “migrate”, mine has never filed a return yet.

Any recommendations on mainland vs FZ? Tax and obligations I think are the same now. fz seems easier, but I want to apply for GV based kn salary, and I read fz companies are exempted, so I am leaning towards mainland. Does this thinking seem correct