Question Hong Kong or Dubai offshore companies do they need an accountant?

[bogdy23]

Hy,
Quick question I have heard about this for some companies but not all of them. A Hong Kong-based offshore or a Dubai one. Do they ask for accounting do they need an accountant? Or just pay the annual fees and you are all good to go?
Thanks

 

[For Free]

For the tax matter, keeping profit in low-tax country is just the first step. How to send profit back to your home country and spend it legally is another story and generally it is different for each country. Developed countries have more power to control their citizens but many developing countries cannot (or even don't care). So you can setup offshore structures like many people are doing, but also need to understand the taxation policies in your home country as well

 

[Davis123]

Well said. For the UAE you should go with Dubai license and avoid small emirates + get someone that know how to work with the local banks.

I agree for a small Emirates it's very difficult if not an impossible task to obtain a bank account nowadays. Years ago it was so easy to open up an Ajman Freezone company (cheapest at the time ) and get a bank account at any of the banks or walk to Ajman bank next door to the freezone but not anymore.

 

[JimBeam]

Hy,
Quick question I have heard about this for some companies but not all of them. A Hong Kong-based offshore or a Dubai one. Do they ask for accounting do they need an accountant? Or just pay the annual fees and you are all good to go?
Thanks

Some free zones in UAE require an audit - so double check in advance.

Also it if you go over 375K AED in last 12 months you need to register for VAT and at that point you'll probably need an accountant. So, if you plan making above this amount get the accountant from day one... If you don't - you need to reconsider is it worth doing UAE FZ setup...

 

[BlueMist]

Some free zones in UAE require an audit - so double check in advance.

Also it if you go over 375K AED in last 12 months you need to register for VAT and at that point you'll probably need an accountant. So, if you plan making above this amount get the accountant from day one... If you don't - you need to reconsider is it worth doing UAE FZ setup...

Provided he would have zero tax rated sales exceeding AED 375k per annum, all it takes is to fill one field properly in the quarterly VAT reports (total AED of sales), while all others field need to be field with 0. Takes no more than 5 mins and can be easily done without accountant.

 

[lacomaco]

Some free zones in UAE require an audit - so double check in advance.

Also it if you go over 375K AED in last 12 months you need to register for VAT and at that point you'll probably need an accountant. So, if you plan making above this amount get the accountant from day one... If you don't - you need to reconsider is it worth doing UAE FZ setup...

DMCC companies definitely need audit. But when it is ready the client has substance to show to the outside world that it is a real working entity

 

[JimBeam]

DMCC companies definitely need audit. But when it is ready the client has substance to show to the outside world that it is a real working entity

Due to ESR rules?
How is that actually done?

 

[lacomaco]

Due to ESR rules?
How is that actually done?

All I wanted to say is that more and more substance is required from structures used worldwide, and an audited FS gives additional credibility and shows that it is a serious entity

 

[Davis123]

All I wanted to say is that more and more substance is required from structures used worldwide, and an audited FS gives additional credibility and shows that it is a serious entity

Yes this is now a problem in UAE that all of them are going through strict ESR checks never done previously.

 

[JackAlabama]

Yes this is now a problem in UAE that all of them are going through strict ESR checks never done previously.

what does that mean? Will you need bookkeeping for sure?