Hello,
I run a company in digital goods and I have been searching for a solution for months for some problems we are having, I am looking for some advice.
My current company is based in the EU. I have a few websites where I process 1000's of small transactions per day. I do have expenses, but these are all for digital goods, I never touch anything physical.
Because we process small transactions people are not willing to verify their VAT residency as required by EU MOSS.
In the past, fool as I was, I opened up a Hong Kong company, with no knowhow of what I was doing at all. The company I used was one we randomly found on Google. They sold me a banking package. In the small letters it said the opening was not guaranteed, but they told us that we have a very good chance.
I travelled all the way to Hong Kong for a meething which HSBC. Delivered the documents they requested.
As I turned out, the application was denied and only later on I found that it was almost impossible for a foreigner with no actual proof of local trade to open up a bank account in Hong Kong without propper guidance.
Today things have changed a bit. I learned by reading and I have a larger budget for a solution.
The main goal I have right now is a solid and safe construction. Cost is of minor importance, the quality of the structure is what matters.
Many times I read stuff about Dubai, people say it is good but expensive. But not much more. We are now in touch with a local consultant, not a cheap one, but a good one recommended by contact who is an expert tax consultant in Switzerland. Next to that I also contacted several other firms from Google to hear their opinions.
What we got offered is a Freezone company in Dubai Internet City. The initial cost all in including Visa and flexidesk (which is obligated) is 80,000 AED. The renewal would be 65,000 AED every year. I am aware that this is expensive.
Some extra info:
- I am very concerned by CRS.
- I was advised that have a residence visa is always a good way to go. The expert told me that nobody knows what the way around it will be yet because of the lack of details. Others told me that if you get the residence visa and a PO box you can just go to the bank with these details and no CRS will happen.
- I have a strong relation with my family, being out of the country effectively for more than 183 days is not something I consider yet. Creating substance around this usually ends up in endless discussion with the authorities.
- I am also very concerned with VAT MOSS even in Dubai.
- There is no such thing as nominee shareholders in UAE.
- If I go the way for the expensive DIC freezone, I will actually create some substance. I will travel multiple times per year to Dubai. I will actually redirect business from there, meaning daily incoming and outgoing payments from there.
- The incoming payments are not a concern and dealt with.
Do you guys have any advice?
I run a company in digital goods and I have been searching for a solution for months for some problems we are having, I am looking for some advice.
My current company is based in the EU. I have a few websites where I process 1000's of small transactions per day. I do have expenses, but these are all for digital goods, I never touch anything physical.
Because we process small transactions people are not willing to verify their VAT residency as required by EU MOSS.
In the past, fool as I was, I opened up a Hong Kong company, with no knowhow of what I was doing at all. The company I used was one we randomly found on Google. They sold me a banking package. In the small letters it said the opening was not guaranteed, but they told us that we have a very good chance.
I travelled all the way to Hong Kong for a meething which HSBC. Delivered the documents they requested.
As I turned out, the application was denied and only later on I found that it was almost impossible for a foreigner with no actual proof of local trade to open up a bank account in Hong Kong without propper guidance.
Today things have changed a bit. I learned by reading and I have a larger budget for a solution.
The main goal I have right now is a solid and safe construction. Cost is of minor importance, the quality of the structure is what matters.
Many times I read stuff about Dubai, people say it is good but expensive. But not much more. We are now in touch with a local consultant, not a cheap one, but a good one recommended by contact who is an expert tax consultant in Switzerland. Next to that I also contacted several other firms from Google to hear their opinions.
What we got offered is a Freezone company in Dubai Internet City. The initial cost all in including Visa and flexidesk (which is obligated) is 80,000 AED. The renewal would be 65,000 AED every year. I am aware that this is expensive.
Some extra info:
- I am very concerned by CRS.
- I was advised that have a residence visa is always a good way to go. The expert told me that nobody knows what the way around it will be yet because of the lack of details. Others told me that if you get the residence visa and a PO box you can just go to the bank with these details and no CRS will happen.
- I have a strong relation with my family, being out of the country effectively for more than 183 days is not something I consider yet. Creating substance around this usually ends up in endless discussion with the authorities.
- I am also very concerned with VAT MOSS even in Dubai.
- There is no such thing as nominee shareholders in UAE.
- If I go the way for the expensive DIC freezone, I will actually create some substance. I will travel multiple times per year to Dubai. I will actually redirect business from there, meaning daily incoming and outgoing payments from there.
- The incoming payments are not a concern and dealt with.
Do you guys have any advice?
