Urgent help needed

[JackieTsan]

Dear All,

After all the stress of having a UAE offshore, without still any understanding, I’ve decided to move out (as company) from uae and I’m looking for a new region to open a company that :

Can have 0% company easily (not with a lot and risky processes to pay tax)” like HK as I understand, or UAE now).

I’m tax resident in a country with territorial tax so I’m not taxed for whatever I make unless getting them inside the country.

Director will be there (not me)

My customers are in EU (Italy, France, Germany) and are big companies. Haven’t ever had issues buying from anywhere but that does not mean I want them having issues when buying from strange offshore regions.

I provide online platforms and digital solutions for my customers. All are licenses and cloud, no hardware delivered.

Would like to easily open reliable EMI account.

Please your suggestion for the 0% region to open a company.

Thank you very much

 

[daniels27]

Probably Singapore. Maybe Channel Islands if you can get the director to move there. Cyprus if you clients have no issues with that. Estonia if you can move out all the money as salary.

 

[JohnLocke]

I don't understand why, when you have spent time and money to establish a company in Dubai for one reason or another, you think it makes sense to close it and set up a new company to avoid 9% taxation.

As you can read around here on the forum, there are several ways to avoid taxation in Dubai! But that said, your question was about a company with 0% taxation. There are still some, for example, Seychelles, Belize, Delaware, New Mexico, and Wyoming, but nothing is straightforward anymore when it comes to offshore companies, especially if you are aiming for 0% taxation.

 

[ilke]

Maybe Cyprus? I guess there could be some ways to fit digital services into the IP box, may be better to consider talking to somebody like @CyprusLawyer101

Otherwise the Channel Islands are doable, as suggested above. Maybe Gibraltar too - you'd be liable for tax if the director was there, but the banking is quite good.

It also depends on where you would trigger PE.

 

[ShillGates]

I don't understand why, when you have spent time and money to establish a company in Dubai for one reason or another, you think it makes sense to close it and set up a new company to avoid 9% taxation.

As you can read around here on the forum, there are several ways to avoid taxation in Dubai! But that said, your question was about a company with 0% taxation. There are still some, for example, Seychelles, Belize, Delaware, New Mexico, and Wyoming, but nothing is straightforward anymore when it comes to offshore companies, especially if you are aiming for 0% taxation.

there are several ways to avoid taxation in Dubai!

please explain - if you make 5Million profit usd (20Maed)

 

[JohnLocke]

there are several ways to avoid taxation in Dubai!

please explain - if you make 5Million profit usd (20Maed)

I'm not going to explain, as I said, you should look around on the forum, there have been lot's of posts about it how to reduce the tax burden in a Dubai company.

Just because it's not said doesn't mean you can eliminate taxes on all 5 million. Soon someone might come along asking how you can remove taxes from 500 million, and then someone else might ask if you can do it for 1 billion USD - I don't think you can. But if we stay grounded and try to understand the issues and look for opportunities instead of just scrapping everything and jumping on the next best thing, then I think you can find them.

I'd rather not comment on tax evasion or cheating. And I don't think it's necessary either.

 

[JackieTsan]

Probably Singapore. Maybe Channel Islands if you can get the director to move there. Cyprus if you clients have no issues with that. Estonia if you can move out all the money as salary.

Something 0% and remote open. Singapore has high expenses for my budgets (around $300K per year income). Need arount $10K per year at least. For channel islands I have no idea, I was thinking about St. Vincent or Cayman but I am still under search (urgently though)..

I don't understand why, when you have spent time and money to establish a company in Dubai for one reason or another, you think it makes sense to close it and set up a new company to avoid 9% taxation.

Mant thanks for your response, I partially agree with you! The reason is that when i opened it (many years ago) the tax was 0%. And me in 0% region (other than UAE). Now with the 9% when I can be on 0% according to my tax residency, why should I pay 9% ? Wouldn't you agree?
As for the "many other ways" , yes i am crazily struggling to find them as my accountant says "I don't know yet". How it's possible to run a company and "don't know yet" what is the tax? How UAE can let this situation happening where we actually don't know exactly what is happening? To say you have to pay this and that.
So, that's the reason I am in this trouble looking for alternatives. And I believe there are many out there having the same issue and concerns.

 

[daniels27]

Something 0% and remote open. Singapore has high expenses for my budgets (around $300K per year income). Need arount $10K per year at least. For channel islands I have no idea, I was thinking about St. Vincent or Cayman but I am still under search (urgently though)..

Can you maybe elaborate what you mean? 300k is at least 10k. What do you want to do and why they cause high costs?

 

[Marzio]

The least hassle way it's probably by running a US LLC since EU companies are accustomed to buy IT services from US companies.

In US there are many EMIs you could choose but you could also open a US bank account by flying there.

Depending on which territorial taxation country you are tax resident you could run US LLC by yourself because of the little risk of creating a PE in the country OR you could hire a manager in a tax free jurisdiction like Bermuda, Monaco and so on so that the US LLC itself becomes tax resident in a tax free jurisdiction.

 

[JackieTsan]

Can you maybe elaborate what you mean? 300k is at least 10k. What do you want to do and why they cause high costs?

Apologies if i was not clear. I said my income is aroud $300k (three hundreds thousands usd) per year, and the cost that I found to struvcture a company in Singapore was around 10.000USD to 15.000 USD. And again need special processes for tax excemption etc etc.. Is not something easy, you open it, invoice, give dividends, 0% tax etc. That's what I am looking for.. No headaches of processes.

What do you think ?

 

[Marzio]

SG is better suited as a final holding destination so i don't really see why you would want to use it for an operational company since it's far from being tax free.

 

[alain]

OP do you live in the UAE or abroad ?

 

[JackieTsan]

SG is better suited as a final holding destination so i don't really see why you would want to use it for an operational company since it's far from being tax free.

thank you! What region and company you would suggest? I need to act asap and open it. And need to find EMI to support it too.
My accountant is pushing for Cayman but I read again that there are tax declarations, audits etc.
What to do??
Customers in Europe, big companies. As long as I get dividends (not passive entity, but a normal company that gives to shareholder dividends), I am OK from tax aspect. Please your suggestions.
Thank you

OP do you live in the UAE or abroad ?

I live abroad, not in UAE. In the one of the two companies, the Director is UAE resindent. Nothing is clear in UAE so I decided to move away rather than getting this headache and stress. BUT WHERE TO GO?????

 

[Marzio]

What region and company you would suggest? I need to act asap and open it. And need to find EMI to support it too.
My accountant is pushing for Cayman but I read again that there are tax declarations, audits etc.
What to do??

I already told you what to do here: Urgent help needed

 

[JackieTsan]

I already told you what to do here: Urgent help needed

Thank you!!!!

OP do you live in the UAE or abroad ?

I live abroad, not UAE.

The least hassle way it's probably by running a US LLC since EU companies are accustomed to buy IT services from US companies.

In US there are many EMIs you could choose but you could also open a US bank account by flying there.

Depending on which territorial taxation country you are tax resident you could run US LLC by yourself because of the little risk of creating a PE in the country OR you could hire a manager in a tax free jurisdiction like Bermuda, Monaco and so on so that the US LLC itself becomes tax resident in a tax free jurisdiction.

Do you know anyone offering this service? Full with the director also? To form a compmany there. What is US LLC? Which region? Do you mean Dellaware? Or where else?
Thank you - Apologies for been newbie

I am researching about Dellaware. I need to open my own EIN (federal tax ID) correct? So, if I decide to open a company in Dellaware I will have to get filed in irs etc??? I have no relationship with USA at all, so far.
So the questions are:
1. Opening a Delaware LLC (or other LLC is better? Like New Mexico etc).
2. I had a chat with one company formation company, they said they provide Nominee Incorporator so I will not appear in the public records. How is this possible if its only Incorporator (nominee) and not real nominee Director?
3. As I understand Dellaware LLC (and other LLC) are not actually companies but are only passive entities, that pass the earnings to the members, correct? In this case that raises other issues, of the point of real management...
I'd extremely appreciate your answers and comments.

 

[daniels27]

How fast your actually need it?

US LLC, I would recommend Wyoming. Delaware is great if you plan to get investors or get listed. Delaware had the advantage that the case law is really developed and clear. A problem you won't have if you own it alone.

Got the US LLC, you need a second company in another tax free jurisdiction as it is a disregard entity. It just opens doors with more banks. That's why he recommends you to hire a manger in Bermuda or Monaco. I doubt that this will be cheaper than Singapore. Where do you live?

Check with Sovereign Singapore. They can do it for about 4k I think.

SG is better suited as a final holding destination so i don't really see why you would want to use it for an operational company since it's far from being tax free.

Why not use Singapore as exempt trading company?

 

[JackieTsan]

How fast your actually need it?

US LLC, I would recommend Wyoming. Delaware is great if you plan to get investors or get listed. Delaware had the advantage that the case law is really developed and clear. A problem you won't have if you own it alone.

Got the US LLC, you need a second company in another tax free jurisdiction as it is a disregard entity. It just opens doors with more banks. That's why he recommends you to hire a manger in Bermuda or Monaco. I doubt that this will be cheaper than Singapore. Where do you live?

Check with Sovereign Singapore. They can do it for about 4k I think.


Why not use Singapore as exempt trading company?

What is the exempt trading company?

I just need a 0% company to invoice my specific customers in Europe. Tax wise I need to have a real company, not an LLC as it’s a passive entity. Need to be active and take dividends.
The company sales technology and platforms software, licenses and solutions, no hardware no imports exports, no warehouse.

Got the US LLC, you need a second company in another tax free jurisdiction as it is a disregard entity.

What is the disregard entity?? why it’s so hard to find one simple company to do the job?? Please kindly explain without me want to waste your time. Thank you!

 

[daniels27]

Ok this case the proposal of @Marzio won't work. Try Singapore.

I sent you a contact of Sovereign Singapore. Give him a call tomorrow. And let us know if he can help

 

[Marzio]

Why not use Singapore as exempt trading company?

Never heard of that option in SG, could you please explain what is this all about?

Tax wise I need to have a real company, not an LLC as it’s a passive entity. Need to be active and take dividends.

FIY US LLC, depending on your tax residency, could be seen as transparent or opaque.

UK for example sees US LLC as opaque so income received from US LLC is taxed as dividends.

https://www.gov.uk/hmrc-internal-manuals/international-manual/intm180030

 

[JackieTsan]

@Marzio thank you very much! That’s what I say, it’s better I go with a normal company with director and shareholder, as I need something simple that I can take the dividends every time I have income, easily. Correct? That’s what I need too. Any suggestions for a region that I can do this easily? White listed in EU as my customers are there in several countries?