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Question UAE Company formation

Wudan01

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Jan 26, 2023
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Hey guys,

So I am currently researching a country, that is favorable, for setting up a new SaaS business.

Background information:
- The new company will be a collaboration between a Dutch entity (BV) and a Canadian individual
- We only sell digital goods
- We do not want to relocate to the UAE
- UAE is preferred due to low tax

Upon engaging this topic, two free-zones keep popping up:
RAK and Meydan. Are there any pro's or cons for either of these zone's or doesn't it matter?
We also read about a UAE residency visa that you can purchase with your company formation, why should one need it if you are not willing to relocate?
Are there other things that we need to consider? We see that competitors in our niche are also located in RAK and Meydan.
And at last, how would one be able to move the profit back to either Canada or NL without paying a huge amount of tax? Any Accountant that you guys can recommend.

I know these are many questions, but I appreciate all feeedback!
 
RAK and Meydan both are good, RAK is cheaper but you won't get Dubai prestige.

You can also have a look at IFZA but they don't have any online panel for company management, everything is done via email.

Regarding the visa, the freezone itself will quote it to you and help you during the process.

I suggest you contact the free zones directly they will set everything up for you without any extra charges.
 
Hey guys,

So I am currently researching a country, that is favorable, for setting up a new SaaS business.

Background information:
- The new company will be a collaboration between a Dutch entity (BV) and a Canadian individual
- We only sell digital goods
- We do not want to relocate to the UAE
- UAE is preferred due to low tax

Upon engaging this topic, two free-zones keep popping up:
RAK and Meydan. Are there any pro's or cons for either of these zone's or doesn't it matter?
We also read about a UAE residency visa that you can purchase with your company formation, why should one need it if you are not willing to relocate?
Are there other things that we need to consider? We see that competitors in our niche are also located in RAK and Meydan.
And at last, how would one be able to move the profit back to either Canada or NL without paying a huge amount of tax? Any Accountant that you guys can recommend.

I know these are many questions, but I appreciate all feeedback!
We can assist with a Dubai Freezone Company same like we did for @M4S and a lot of others here in the forum.

Don't go too cheap - especially if you don't intend to live in the UAE you actually need someone setting up for you bulletproof substance like an Office for Banker Visit and Utility Bills - you can rent all this out by yourself of course but you endup paying the double just for the substance compared to our proposal and you don't get any service.

Quite a lot of guys get everyday burned with oldfashioned Freezones like RAK in 2023 - this guys assume to open a Business Bank Account by walk in to any branch while having a virtual office / flexi desk - Business Bank Account opening with such a setup won't happen in 2023 in any reputable Bank in Dubai.

I think it's unnecessary that you are getting burned the same way after reading around here in the forum - all is there but everything for nothing doesn't works out - especially not in the UAE.

The point about the Residence Visa is that it gives us infront of the Bank Compliance a strong nexus.

Common Compliance Question:

"Your Supplier is based in the Netherlands and your client in Canada (or the other way around) - what's the rational for setting up a Business Bank Account in the UAE?"
-> Without a Residence Visa the honest reply would be: "well there is no rational as we are just operating a 0 substance shell company to pay no taxes" you can formulate this in whatever way you want - what was written here is basically how the compliance officer sees it and just rejects your Business Bank Account Application.

With a Residence Visa (we have actually a Residence Visa FREE for LIfetime Promotion) we can claime you are living fulltime in the UAE and you need to pay for your living expenses etc. - while at the same time the Residence Visa remains active by visiting the UAE twice a year for 1 day and no residence register exists.

The Immigration Politics in the UAE are actually the real loophole while everyone is looking at 0% tax.

How to leverage back to your home country can be discussed but don't think about this for now as no money can be remitted without Business Bank Account.
 
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