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Question Best way to manage a BVI company

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OffshoreResearch

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Nov 27, 2019
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#1
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We all know that a BVI is exempted from taxes as well as from dividend withholding tax.
Let's say I live in a country which doesn't tax foreign income (it's obviously what I'm finally going to concretize and not just an hypothetic case) and which has a double taxation treaty with the BVI so what's the most legit and transparent way to withdraw dividends from the company to my personal account ?
I mean that I can't surely just wire funds from the company account to mine so should this be cared from my local tax accountant or from a qualified one in the BVI ?

Basically what should I provide to my country to proof the legit origin of such funds ?
Thanks in advance for your feedback.
 
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#3
Thanks for your advice.
Some months back I've ivestigated a lot about UAE companies and it seems it's quite impossible 'today' opening a bank account for a freezone company (without local shareholders/directors) for a non resident and it's even harder dealing with banks basing on some reliable info collected from an Iraqi friend who knows very well the local situation.
Noting is easy today and most of the good structures are not supported by banks so I'll have an hard life while looking for a bank ready to open an account in the UAE.
 
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#4
OffshoreResearch said:
Noting is easy today and most of the good structures are not supported by banks so I'll have an hard life while looking for a bank ready to open an account in the UAE.
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you are able to visit the UAE and consult a firm to help you?

If you read on the forum it sounds like personal visit is mandatory and you need someone used to it to help you.
 
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#6
But BVI companies pay apparently no tax and no dividend withholding tax so a complex matter may be simplified by starting to look for banks ready to open an account for it in a safe jurisdiction.
Ah surely UAE is the best option to legally avoid any taxes and I agree on that point.

I'll check again about current UAE situation with my contact by asking him to collect some info locally and I'll try to make a decision.
 
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#7
OffshoreResearch said:
I'll check again about current UAE situation with my contact by asking him to collect some info locally and I'll try to make a decision.
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if you can get a bank account with some bank in the UAE then please don't forget to come back her and let us know how you did it, there may be hundred of people around here interested in the same.
 
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#8
sonato said:
if you can get a bank account with some bank in the UAE then please don't forget to come back her and let us know how you did it, there may be hundred of people around here interested in the same.
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If you open up a Dubai Freezone company like Jafza etc you will be able to get an account with a bank as some Dubai free zones can get accounts easily but if you get any LLC with a local partner as share partner you will be able to open accounts in a few minutes. Banks love LLC.
 
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#9
I don't even know if possible going to the UAE from Europe actually and I'll still need to talk with my Iraqi friend to know how things are actually working locally but I'll surely update the thread in case I should make such decision so I'll let you know how things worked.

But opening an LLC with a local partner may probably expose at possible risks my bank account and future funds in case he should have equal rights like me to manage it - Again I may be wrong so I'll investigate further about this topic as well.
 
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#10
Davis123 said:
get any LLC with a local partner as share partner you will be able to open accounts in a few minutes. Banks love LLC.
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do you know if this will require personal visit or is it possible to let the partners do the account opening?
 
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#13
You can also move to some exotic island countries like Bahamas or Vanuatu and enjoy tax free exotic life. However, be aware you will have really live there and also banking will become more difficult. Because these countries are high risk. But be able to use BVI companies etc.
This does not apply to USA citizens , because they pay tax based on citizenship and some other cases when you still have wife kids in your home country.
You have to emigrate properly and then you will be tax free :)
 
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#14
I'm thinking since a long time to spend some time in few diff. exotic places before choosing the right one where starting a new tax-free life problem is that COVID is making things harder just now that I was ready to start travelling around the world.
I don't want to stay anymore in my home country so I'll start travelling from November towards the few opened countries of the moment (the ones which won't force me to a quarantine of course).
 
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#15
Depending on your business you may throw a look on so called professional license in UAE. Listed activities such as accounting, consulting or project management allows you to open a mainland company without a sponsor/local resident who owns 51%. This does not apply to trade licenses. For mainland companies LLC it is pretty easy open a business bank account as they are not beeing considered as offshore liability.
To setup you will need a local agent. It’s required by law. They manage all paperwork for you.

Even with a local shareholder, he hasn’t direct control nor you need to share profits. Usually you just pay a fix rate per year. To cover your control a deed is lodged at court.
 
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#16
Admin said:
do you know if this will require personal visit or is it possible to let the partners do the account opening?
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I think personal visit is the best option. Plus UAE local partners in an LLC are simply some paid off partners who are paid every year by you based on a stated amount on a contract. I have a local partner I am paying every year on my local business. He does not need to come to your bank even to open up your account. My father had local partners for decades for his business in UAE. I think once UAE starts a citizenship program if it ever starts it, this would remove the partner option too but then again I doubt citizenship laws would sail that easily as I am sure locals would absolutely hate it as they are making money off foreigners without any work or labour in business partnerships in LLCs. Admin you are welcome to contact me anytime for any help on this.

wheelspin said:
Depending on your business you may throw a look on so called professional license in UAE. Listed activities such as accounting, consulting or project management allows you to open a mainland company without a sponsor/local resident who owns 51%. This does not apply to trade licenses. For mainland companies LLC it is pretty easy open a business bank account as they are not beeing considered as offshore liability.
To setup you will need a local agent. It’s required by law. They manage all paperwork for you.

Even with a local shareholder, he hasn’t direct control nor you need to share profits. Usually you just pay a fix rate per year. To cover your control a deed is lodged at court.
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Yes correctly stated.

Dandyline said:
Just open a simple freezone company to gain UAE residency, open private bank account. Then just wire money from BVI (or UK LLP, US LLC) to your private bankaccount in UAE.
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Yes but bank accounts for Freezone companies are very difficult nowadays. While Dubai Freezone companies like Jafza etc are easier to get banks interested in them, it's not so easy with other Freezones. It also depends on who you know so get a good introducer.

OffshoreResearch said:
I don't even know if possible going to the UAE from Europe actually and I'll still need to talk with my Iraqi friend to know how things are actually working locally but I'll surely update the thread in case I should make such decision so I'll let you know how things worked.

But opening an LLC with a local partner may probably expose at possible risks my bank account and future funds in case he should have equal rights like me to manage it - Again I may be wrong so I'll investigate further about this topic as well.
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Your partner will not be on your bank account so no worries. It just depends on your contract with him. Just not let too much money sit in UAE bank accounts. Best way to do it is to get a bank account in Singapore where you keep most of your money. I think CaptK and others here have some unique ideas too how to manage your tax affairs since it's their field of expertise.
 
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#19
Setting up a BVI company owned by a UAE entity may be the most bulletproof solution. The big question is if you are able to get any bank account opened anywhere as it look right now with the current situation in the world.

offshoreavatar said:
Can’t you just open a World First, TransferWise or similar account? Why do you need to open one in the UAE?
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you want to avoid taxes, that's not possible that way.
 
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#20
erni said:
Setting up a BVI company owned by a UAE entity may be the most bulletproof solution. The big question is if you are able to get any bank account opened anywhere as it look right now with the current situation in the world.


you want to avoid taxes, that's not possible that way.
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Oh right I don’t know if I’m being naive here or just not understanding correctly maybe. But if you use flag theory type approaches correctly you don’t have to avoid / do anything illegally.
Also how does a UAE company owning a BVI company help?
 
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