Need some company setup + banking advices in the UAE

[thapparbrother]

Good evening everyone,

This is my first thread in this amazing community, so I hope I am following the rules properly.

I recently opened a company in the IFZA Freezone in the UAE. My Emirates id process is ongoing and I am now meeting few banks.

I a willing to live here and also found an amazing appartement, so I will be resident in the UAE.

I’m a bit worried because I am now facing some issues, so I hope that you guys will be able to help me.

Here are my questions:

1. Applying for business banking is crazy here, I visited FAB and EDIB, they are asking for some crazy balance to maintain on the account (100K€). I guess that if I just transfer 100K€ from my Belgian company to my UAE company I might get in trouble. What do you guys recommend? Do you have any other affordable bank in mind?

2. What’s the best way to transfer money from my Belgian corporate account to UAE? Is only invoicing from a company to another fine?

3. I work especially online and all my clients are based in Europe. I sell monthly online paid advertising management, digital courses and I sometime do dropshipping. I have been told that having a US LLC or UK LLP is helpful when having an UAE company, can someone please clarify why it’s useful and if the UAE company should be parent of the LLC or LLP ? Also, how can I get an EU IBAN bank account ? Then finally, how do you send the money back to the UAE ?

Sorry being dumb but I don’t really get the setup and the company in charge of my UAE company setup doesn’t have any clue about it.

Thank you so much for your help and advices !

 

[Fred]

Good evening everyone,

This is my first thread in this amazing community, so I hope I am following the rules properly.

I recently opened a company in the IFZA Freezone in the UAE. My Emirates id process is ongoing and I am now meeting few banks.

I a willing to live here and also found an amazing appartement, so I will be resident in the UAE.

I’m a bit worried because I am now facing some issues, so I hope that you guys will be able to help me.

Here are my questions:

1. Applying for business banking is crazy here, I visited FAB and EDIB, they are asking for some crazy balance to maintain on the account (100K€). I guess that if I just transfer 100K€ from my Belgian company to my UAE company I might get in trouble. What do you guys recommend? Do you have any other affordable bank in mind?

2. What’s the best way to transfer money from my Belgian corporate account to UAE? Is only invoicing from a company to another fine?

3. I work especially online and all my clients are based in Europe. I sell monthly online paid advertising management, digital courses and I sometime do dropshipping. I have been told that having a US LLC or UK LLP is helpful when having an UAE company, can someone please clarify why it’s useful and if the UAE company should be parent of the LLC or LLP ? Also, how can I get an EU IBAN bank account ? Then finally, how do you send the money back to the UAE ?

Sorry being dumb but I don’t really get the setup and the company in charge of my UAE company setup doesn’t have any clue about it.

Thank you so much for your help and advices !

I guess you mean ENBD - yes they ask for funds and even if you bring funds the KYC is though.

FAB doesn't work in the SME with Freezone Companies - however we can get you a 0 Balance Business & Personal Account.

 

[uplana]

I would pickup some of the experts which are in the same situation as you and who are around in the UAE - would be easy for you to meet there and get things done professional.

Offshorecorptalk can be the link to these professionals if you use it right.

 

[JimBeam]

1. Apply for Mashreq NeoBiz online and they usually approve accounts with zero balance, but it's better to deposit something or at least tell them that you'll do that ... All can be done online and they will send someone to sign the documents once things are ready. Can take some time to get it open and approved.

2. If you are the owner in both that can be an issue. I've done it personally but it was quite a hustle with the accountants, lawyers and bankers to make it possible.

3. Not sure about this one. You can use PayPal in UAE. (Transfer)Wise worked before and they would gave you EUR IBAN but they for your UAE company but they do not work anymore in UAE. I managed to setup a bank account in Switzerland for my UAE company and got IBANS for EUR, USD in that bank. There are also EMIs that might be able to help you out. I would go for US/UK company only if it's a requirement to get Stripe or something like that.

 

[uplana]

Mind to share some names of the banks and EMI's ?

 

[thapparbrother]

Thanks for your help!

I'll try Mashreq. Anyone in the UAE operating with an US LLC ?

 

[JimBeam]

Mind to share some names of the banks and EMI's ?

CIM but AFAIK they only work with Dubai based Free Zones (they won't open for RAK and other "cheaper" options)...
Actually, we got that one opened quicker than Mashreq (as someone in Mashreq "lost our application" despite it being digital LOL)...

EMI's have Payoneer (but don't use it much really) as the banks work just fine... So didn't even bother looking for other ones...

 

[Fred]

CIM but AFAIK they only work with Dubai based Free Zones (they won't open for RAK and other "cheaper" options)...
Actually, we got that one opened quicker than Mashreq (as someone in Mashreq "lost our application" despite it being digital LOL)...

EMI's have Payoneer (but don't use it much really) as the banks work just fine... So didn't even bother looking for other ones...

Then you were opening 1-2 years back.

CIM Bank stopped opening for Dubai Companies at all - starting from this year but even 2020 they were not really keen to open - 2019 was the last year of the good old times.

Even if the Director is fulltime living in Dubai, Office in Dubai and Company in Dubai (100% Residence Case) they are no longer opening for the UAE as a jurisdiction itself - except personal bank accounts.

We guess due to OECD pressure as even in 2019 they were forced from the OECD to ask a lot of nonsense stuff that basically even didn't exist for the Dubai Company.

At least for now they keep all the old accounts open - let's see how long this lasts.

 

[ceko]

I'd be very careful when transferring funds from Belgium to UAE. If both companies are owned by you this is subject to transfer pricing and you are not free to allocate profit as you please. So you need an expert to write a long report on where the service is provided to what extend and how the profit should be shared between countries.

Best way forward looks like using stripe to make payments convenient for your clients and issue all invoices from your UAE company.

 

[MiddleEuroAsia]

Then you were opening 1-2 years back.

CIM Bank stopped opening for Dubai Companies at all - starting from this year but even 2020 they were not really keen to open - 2019 was the last year of the good old times.

Even if the Director is fulltime living in Dubai, Office in Dubai and Company in Dubai (100% Residence Case) they are no longer opening for the UAE as a jurisdiction itself - except personal bank accounts.

We guess due to OECD pressure as even in 2019 they were forced from the OECD to ask a lot of nonsense stuff that basically even didn't exist for the Dubai Company.

At least for now they keep all the old accounts open - let's see how long this lasts.

Damn. Didn't know about that, I have been using them for a while and they've been good. Although, they have been asking for extra documents lately but that's about it. But I didn't know that they stopped onboarding Dubai companies though, what a bummer.

I'm not gonna gamble and see if they will keep my account with them open or not, I will look for other options.

Seems like I need to travel again since the problem with most representative offices in the DIFC is that they want to sell you some investment products or the general wealth management BS. None of them are really interested in opening transactional accounts for your company UNLESS you are a customer with them, by their words "they can work something out".

well, at least it was good while it lasted.

Anyway, thanks for the update @Fred

 

[Fred]

Damn. Didn't know about that, I have been using them for a while and they've been good. Although, they have been asking for extra documents lately but that's about it. But I didn't know that they stopped onboarding Dubai companies though, what a bummer.

I'm not gonna gamble and see if they will keep my account with them open or not, I will look for other options.

Seems like I need to travel again since the problem with most representative offices in the DIFC is that they want to sell you some investment products or the general wealth management BS. None of them are really interested in opening transactional accounts for your company UNLESS you are a customer with them, by their words "they can work something out".

well, at least it was good while it lasted.

Anyway, thanks for the update @Fred

That's it man.

Figuered it out early this years as I wanted to re-open an old account with them and they refused.

I noticed as well that they are the only Bank that deals with international clients without selling you som investment BS - they just charge you good money for having you with a more exotic residence.

Keep us posted if you find something similar

 

[PaulKruger]

Does it mean CIM Bank reject Dubai companies but keep existing customers with such entities or are they taking them as long as you have sufficient with money to float the account?

 

[Fred]

Does it mean CIM Bank reject Dubai companies but keep existing customers with such entities or are they taking them as long as you have sufficient with money to float the account?

They rejecting new applications for Dubai and Abu Dhabi Companies and keeping existing clients as for now.

I guess due to the fact everyone with a Dubai Company has automatically a Dubai Residence as well makes it easier for them to keep the accounts compared to all the Europeans with Hong Kong Companies in the past and EU residence - this kind of setup they did already shut down during 2019/2020.

 

[PaulKruger]

What banking can you suggest possible for a Dubai company?

Can you clarify, do I need visit Dubai if I just want the company there? Is there an EMI that opens accounts remote for such entities?