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Where to incorporate for Russian trade business

deepocean

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Mar 2, 2019
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Hi,

I got a question from a friend, where to incorporate a global trading company to export Russian agricultural products.
Target markets are Middle East and Africa. Of course the banking infrastructure needs to be up to par to support L/C business cash transfers.
Dubai came to mind but with annual fees as high as USD 15K, were are looking for alternatives. Any one has experience with Oman for example? Other suggestions are welcome.
 
You don't have to get a Dubai company to export to Dubai.
I work with Dubai since almost 15 years and i do it from Euro and HK companies, and i would advise HK. But then come the problem of the banking and the L/C's. It will be problematic.
When they want to pay in cash, it's happen a lot there , tell them to go to a money exchanger , it s common . They pay in cash and you receive your wire transfer.
 
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HK is fine as a company location with banking arrangement elsewhere. I would avoid Dubai and Cyprus while it is OK for company location I would suggest that banking with a Cypriot bank may prove an issue for you. and will require a personal visit to open. If you did want to bank for a Dubai Company in Dubai the likelihood is that you will need to visit Dubai to complete the account opening process.
 
What is the benefit of HK over Dubai or Cyprus?
HK has a very annoying annual report, I have heard quite bad stories about it.
One of my acquaintances (she works for a well-known HK accounting company) actually told me that her company regularly asks companies to allow them an on-site audit visit (for example if one the operating companies is not located in HK), on the cost of the company. Last time she visited a company costs were 10K€!

HKG auditor pester you more than fruit flies, and opening a banking account is a pain, so if HKG can be avoid, this is preferred.
 
Dubai does not have a good reputation from a bank point of view and limited options exist. Cyprus is OK, but is in EU so lacks privacy and privacy cannot really be achieved using Nominees etc in reality, plus corporation tax exists. HK is well received by banks generally, has 0% corporate tax on business done outside HK and confidentiality is possible through careful structuring. We have been incorporating companies in HK for over 20 years and I have never once heard of an onsite visit requirement or indeed with any issues regarding the 0% corporate tax rate being accepted which I know some people say has been a problem for them. €10k for a Hong Kong Company seems excessive.
 

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