Friend as owner of company legal issues, cashing out

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anubis92

New member
I'm wondering about this : let's imagine for a second that you put your friend in charge of your Freezone company in UAE (what a bad idea heh) let's say the trust between both is really good.

1) Is there any issue to be resident in the UAE and him wiring money from the company account directly to my personal account? I'm not a shareholder, and at best I'm employed in the company, but he wires like 99% of profits. This is not really embezzlement since the owner (friend) is ok with it, will the banks have anything to say? Anyone else would see legal / government issues? Sorry, bit new here

2) This can be a great way to escape taxes, and keep "accumulating" While you are resident somewhere else, and then just become resident "once every 5 years", buy the company from said friend and cash out brokerage / trading / service gains... to own account. and it's all quite safe as long as you "work" remote. Is this being used by peopel or are there problems here too?

Cheers,
 

koohl

Mentor Group Gold
In point 1 I think it should be well possible because if you live in the UAE you don't pay any tax, what's the problem?

In point 2 I think you forget that there is a difference to live in the UAE and to live somewhere else where you get taxed on your income. Not sure if I misunderstood.

@Fred or @Gediminas may be able to sort this out better.
 

Don

Entrepreneur
In point 1 I think it should be well possible because if you live in the UAE you don't pay any tax, what's the problem?

In point 2 I think you forget that there is a difference to live in the UAE and to live somewhere else where you get taxed on your income. Not sure if I misunderstood.

@Fred or @Gediminas may be able to sort this out better.
Thats actually largely overlooked tax planning strategy and can work well as in some countries gifts are free from income tax
 

bamboozlethemall

bamboozlethemall
Mentor Group Gold
BANNED MEMBER
I'm wondering about this : let's imagine for a second that you put your friend in charge of your Freezone company in UAE (what a bad idea heh) let's say the trust between both is really good.

1) Is there any issue to be resident in the UAE and him wiring money from the company account directly to my personal account? I'm not a shareholder, and at best I'm employed in the company, but he wires like 99% of profits. This is not really embezzlement since the owner (friend) is ok with it, will the banks have anything to say? Anyone else would see legal / government issues? Sorry, bit new here

2) This can be a great way to escape taxes, and keep "accumulating" While you are resident somewhere else, and then just become resident "once every 5 years", buy the company from said friend and cash out brokerage / trading / service gains... to own account. and it's all quite safe as long as you "work" remote. Is this being used by peopel or are there problems here too?

Cheers,
I dont think there is any issue here but better to cashout via crypto.
 
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anubis92

New member
I dont think there is any issue here but better to cashout via crypto.
You mean the bank might not be suspicious when on my "employee at 10k AED / month" there is much more then that coming every months? It's also going breaching the UBO rules on the company bank account + trading accounts... may I not get banned from banking or such with these practices?

How would a cashout through crypto work in case of a company? gotta wire those AED from the company somewhere to turn them into USDT for instance (I know that bitoasis, and some OTC's provide that but the OTC's work only with cash here in Dubai). Not sure CBD likes to see business wires to crypto exchanges like Binance / Coinbase (business accounts) or they dont care? I got told they should not hear / see anything crypto. Same for local accounts. So I'm a bit confused how one would do that.

Cheers,
 

bamboozlethemall

bamboozlethemall
Mentor Group Gold
BANNED MEMBER
You mean the bank might not be suspicious when on my "employee at 10k AED / month" there is much more then that coming every months? It's also going breaching the UBO rules on the company bank account + trading accounts... may I not get banned from banking or such with these practices?

How would a cashout through crypto work in case of a company? gotta wire those AED from the company somewhere to turn them into USDT for instance (I know that bitoasis, and some OTC's provide that but the OTC's work only with cash here in Dubai). Not sure CBD likes to see business wires to crypto exchanges like Binance / Coinbase (business accounts) or they dont care? I got told they should not hear / see anything crypto. Same for local accounts. So I'm a bit confused how one would do that.

Cheers,
Thats why said going the crypto route is the best. DM me for help.Thats exactly what i do.
 

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