UAE FZCO + US LLC Payment Processing

[AbsetJW]

Is it possible to own a UAE FZCO and use a US LLC for payment processing?

How would this work with accounting on the UAE side?

1) Owner is UAE resident
2) FZCO and pay 9% corporation tax
3) US LLC to process payments in USD

I know people do it - but I can't figure out who to ask to understand if it's legitimate.

 

[JustAnotherNomad]

Read this thread:

Thread 'Best way to set up company to charge customers Tax Free?'

Sep 15, 2024

Is there any company (between the ones listed below) that allow the company to be used to charge clients for services/goods, and then transfer the funds tax free into a foreign company: (e.g: UAE company) without going into illegal tax evasion areas?

For example:
- Irish company used to set up Stripe charges clients
- Profits are distributed from the Irish company into a UAE company either through Dividends OR the UAE company charges the Irish company for services
- The Director would be a resident of the UAE or similar low tax jurisdiction ( such as: Hungary, UAE, Hong Kong, etc...)


Is...

• HeinzKetchup69
• Replies: 26
• Forum: Offshore Company

• 

It's legitimate, but there is a risk that the US payment providers won't like you.
If you have a lot of EU customers, it might make sense to use a EU entity, as for example Stripe will offer lower fees for EU cards then.

 

[AbsetJW]

Thanks. Would a US LLC work? Does the FZCO need changing to a holding company?

 

[JustAnotherNomad]

Yes, it should work with a US LLC as well. Not sure about the rest.
You'd probably have the highest chance of success if you set up the US LLC as opaque, rent an office in the US and pay tax on the (tiny) profit.