UAE + UK LLP/US LLC setup questions

[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 going to live here.

I have few questions and I hope you guys will be able to help me. I did some research on the forum and Google and I could not find any proper answer to these questions:

1. 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 ?

2. Considering that I have some money in my Belgian company, what would be the best way to transfer this money to the UAE to save on taxes?

3. Is crypto allowed at a personal level in the UAE? Which bank do you use to cash out?

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 !

 

[TravelAfficionado]

Welcome to the UAE.

Regarding your second question, I believe the cleanest option is simply to pay yourself a dividend from your Belgian company to yourself as a UAE resident. As a UAE resident, you should qualify for a Belgian dividend withholding tax rate of 10% under the Belgium-UAE tax treaty (rather than the 30% rate for Belgium residents).

Here's the text of the Belgium-UAE tax treaty:
http://internationaltaxtreaty.com/download/United Arab Emirates/DTC/UAE-Belgium-DTC-Sep-1996.pdf
The relevant clause is Article 10, clause 2(b)
"the tax so charged shall not exceed... 10 per cent of the gross amount of the dividends in all other cases"

 

[thapparbrother]

Hi, thank you and thank you for your answer !

Interesting, do you think it can be helpful to make the UAE company parent of the belgian company ?

 

[Fred]

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.

That's really sad.

Get yourself next time a reliable corporate service provider.

We can help you for sure - send me a PM or E-Mail via our website.

 

[thapparbrother]

Hi Fred,

I sent you a DM, thanks for your help!

 

[startfleetio]

The reason to have a US LLC in front of the Dubai company is you can have access to Stripe Paypal Transferwise and other popular services for US companies and the LLC does not have any taxes if you fulfill certain criteria

 

[thapparbrother]

Thanks, but as far I know stripe and PayPal are also available in Dubai?

What would be the best option considering the fact that my clients are based in Europe ?

Thank you !

 

[startfleetio]

If you are issuing invoices to European companies some of them might not accept a Dubai Company invoice. Generally, it is better to use Dubai as a holding company rather than the operating company

 

[thapparbrother]

Okay thanks! So I guess I have to open a LLC and make the UAE company parent of this new llc ?

 

[uplana]

@Fred is a reliable and helpful guy where you can't go wrong, that's at least my experience.