Choosing where to establish your company is a crucial decision that is no longer based solely on where you pay the least tax.
There are a whole range of factors to consider:
Jurisdiction
Choose your jurisdiction carefully. There are many factors to consider when choosing where to establish a company. First, reputation. This is a key factor. In addition, you should ask yourself certain questions: Is there a strong regulatory system? Is there easy access to banks? Is it easy to travel there? Is it on the OECD whitelist? etc.
Surround yourself with professionals in the field
Once you have decided which jurisdiction is best suited to your structure, you will need legal, tax and other professional advice to ensure that what you are planning is feasible both inside and outside the jurisdiction. We have a partner, Merritt Legal Consultant, who will answer all your questions.
The advice of these professionals comes at a cost, but it is only a small price to pay in the long term.
Find a trusted Corporate Service Provider
A Corporate Service Provider is the equivalent of an agent for your company. A corporate services provider is a professional entity that provides support solutions to other businesses, such as company formation and registration, company secretarial services, accounting, resident visa processing, etc.
The best solution is therefore to conduct your own research and find the best provider. Find a provider authorized to provide the services you are looking for. Ask people you know to recommend a trusted Corporate Service Provider. Whenever possible, try to meet the provider in person to establish an initial contact.
Understand your business needs
It is important that the service provider you choose understands your business needs and your long-term objectives. We recommend finding out about their expertise or experience in your sector. Do they understand how a business operates on a global scale? Do they have expertise in other jurisdictions if necessary? Do they have multilingual staff? The list of questions to ask is endless. Finally, the most important thing is that they understand your objectives and are able to communicate with you. This is essential for a long-term relationship.
Due diligence
The Corporate Service Provider you select will need to carry out a procedure called KYC: Know Your Customer. In addition to your identity document and proof of address, you will need to provide information about the source of your wealth. This information must be as detailed as possible, and you may be asked to provide evidence to support it.
Agree on the scope of services
Every provider offers
different services. Make sure you agree on what you do and do not want them to do for you. Additional actions may sometimes be necessary, but this must be agreed in advance by both parties.
At Merritt Middle East, we offer four main categories of services:
- Corporate services: company formation, license renewal, bank account opening, etc.
- Resident services: residence visa, EmiratesID, etc.
- Legal expertise: business law (commercial law, contract law, etc.), employment law and inheritance matters for UAE residents,
- Outsourcing solutions: accounting, invoicing, recruitment, company management, etc.
How much does it cost?
Fees vary from one provider to another and also depend on the services you need. Most providers will agree on a fixed amount for providing certain services, such as providing a registered office, annual directors' fees and opening a bank account. It can be difficult to calculate the exact cost of administrative services, especially for a new company, and some providers may offer fixed fees.
At Merritt Middle East DMCC, we offer an exclusive package at
AED5 000 per year
Establish a permanent presence
Establishing a company whose registered office is located in a low-cost jurisdiction (such as Ras Al Khaimah or Fujairah) will probably not be enough to convince anyone that it was created for any purpose other than avoiding taxes, and will make opening a bank account very difficult. The recently introduced regulations on
Economic Substance mean that additional attention must be paid to companies involved in certain sectors. It is therefore essential to have a genuine presence by conducting real business activities in the jurisdiction. This may include, among other things, having local directors, having an office, employing specialized local staff, having a website or having a local bank account.
Management and control
This is often the most difficult element to understand. To benefit from a local tax regime, your company must be managed and controlled from that jurisdiction. The local director(s) must be duly authorized to make day-to-day decisions relating to the management of the company in accordance with the company's objectives.
Opening and managing a bank account
Opening bank accounts has become difficult everywhere in the world, but your Corporate Service Provider is expected to have a range of options to offer you. You have the option of opening a bank account with a local bank or an online account.
Merritt Middle East is a corporate services provider headquartered in Dubai, with offices in Hong Kong and Orlando, Florida.
Our firm, present in Dubai since 2009, assists you with all the administrative procedures involved in setting up your company in the UAE. Our team consists of lawyers, accountants and PROs. We invite you to contact us at the following address:
support@merritt.group.
