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Why would you form a UAE company?

yngmind

yngmind

Mentor Group Lifetime
Apr 26, 2020
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#1
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Why would you form a company in the UAE with high setup costs, audits, problems with banking, corporate tax, and high processing fees?

If you do international business outside the UAE, name me a few reasons why you would do that.

There are other options regarding residency, and the "general manager" visa is not likely to get you far away.

There are better options...
 
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#2
It was good at a time, but then too many did it and with too much bullst. Hence, the reputation went to hell and they introduced audit, taxes, etc. Now, you have a pretty solid combination of bad reputation coupled with taxes and red tape.

Yes, there are better options. Just check instagram and tiktok first where the idiots are and go elsewhere. (it works pretty much like McKinsey: You hire them, they tell you the same story as to your competitors and you know where better not to invest.)

Ovid: There is nothing permanent except change.
 
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#5
#7
baio12 said:
Same like 0% tax for digital nomad achievable?.
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Yeah, US LLC and being a tax resident nowhere or a tax resident of the country that will tax you only be PE (then hire a director from 0% tax country) and receive dividends passively.


The options are reducing every single year. I would be ok to pay low taxes and live in a nice country.
 
#8
yngmind said:
Yeah, US LLC and being a tax resident nowhere or a tax resident of the country that will tax you only be PE (then hire a director from 0% tax country) and receive dividends passively.
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What other option than US and UK for such LLC?

Is possible to be tax resident nowhere? Some old country of yours can ask you for proof that you are tax resident somewhere.
 
#9
baio12 said:
What other option than US and UK for such LLC?

Is possible to be tax resident nowhere? Some old country of yours can ask you for proof that you are tax resident somewhere.
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I think we're going far away from the topic. The topic is about UAE companies and why anyone would form them.


Some countries are okay with showing them you were out for over 183 days.
 
#10
It depends on lots of factors.

UAE companies can still be desired if you want to live in Dubai and make $1M a year, for example. Then you can pay less than 9% corporate tax and you get to forget about personal income tax.
 
#11
yngmind said:
I think we're going far away from the topic. The topic is about UAE companies and why anyone would form them.
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Yes, please read here about alternatives, we discussed them in many details.
https://www.offshorecorptalk.com/threads/is-singapore-truly-a-tax-haven.44805/https://www.offshorecorptalk.com/threads/gibraltar-vs-bvi.44713/https://www.offshorecorptalk.com/threads/singapore-company-structure-for-offshore-taxation.43973/
scooterguy said:
UAE companies can still be desired if you want to live in Dubai and make $1M a year, for example. Then you can pay less than 9% corporate tax and you get to forget about personal income tax.
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I think many did not want to live there in the first place.
 
#13
daniels27 said:
Yes, there are better options. Just check instagram and tiktok first where the idiots are and go elsewhere. (it works pretty much like McKinsey: You hire them, they tell you the same story as to your competitors and you know where better not to invest.)
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very well said, that's truly a great piece of advice everyone should follow.
 
#14
daniels27 said:
I think many did not want to live there in the first place.
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Many did not want, many wanted though. To be honest I'd rather live in Dubai than Gibraltar or Singapore.

But personally I wouldn't live in any of them. I prefer cheap third world countries.

Taxation-wise UAE is still pretty good though, among the best places in the world if we do the math.
 
#15
scooterguy said:
Taxation-wise UAE is still pretty good though, among the best places in the world if we do the math.
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I agree with you to a certain extend. However, not all would like to live in Dubai because it is what it is.
 
#16
to pay your Dubai company from your other companies thus reducing tax burden in original jurisdiction, and pay 9% CIT on the remainder after giving yourself max high salary at 0% personal tax?

example
US company has $1M in profit, tax is from 18 to 40% depending on state. But you pay $500k to your Dubai company for whatever service is relevant. From those you give $400k in salaries at 0% personal income tax and pay 9% on the remaining $100k instead of of 18%-40% on $500k

Just thinking out loud, NFA.
 
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#17
PinkCat said:
to pay your Dubai company from your other companies thus reducing tax burden in original jurisdiction, and pay 9% CIT on the remainder after giving yourself max high salary at 0% personal tax?

example
US company has $1M in profit, tax is from 18 to 40% depending on state. But you pay $500k to your Dubai company for whatever service is relevant. From those you give $400k in salaries at 0% personal income tax and pay 9% on the remaining $100k instead of of 18%-40% on $500k

Just thinking out loud, NFA.
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looks like BEPS at first glance
 
#20
yngmind said:
Why would you form a company in the UAE with high setup costs, audits, problems with banking, corporate tax, and high processing fees?
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Because your passport is garbage and UAE is only place that will allow you residency and business banking combined. Ask the Nigerians, Iranians and now Russians etc. They don't really have many good alternatives on where to live and do business without doing shady stuff to make it work for them.
 
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