Solutions for Drop Shipping professionals

Our “Dropshipping” solution

The issues

We have developed a tailored solution for dropshipping professionals to address 3 issues:

Personal tax residency in the Emirates (no income tax or social security contributions)
Sale of goods without taxation on profits
Tax compliance (VAT, etc.)

The solution

The solution therefore consists of obtaining a freelance license in the Emirates, which makes it possible to obtain a residence visa for the Emirates. It will then be possible to open a bank account in Dubai. At the same time, a company is established in the USA with a business bank account. There is no income tax in the Emirates, and the company in the USA is fiscally transparent (the shareholder is taxed in their country of residence, not the company, so there is no taxation in the Emirates).

Advantages and limitations

The benefits of this solution

Comprehensive tax optimization (corporate and personal)
Residency in the United Arab Emirates
Positive image of the USA
Total cost of the solution

The drawbacks of this solution

Not suitable for a business with multiple partners
Not suitable for complex structures (holding company)
No business bank account (in a company’s name) in the UAE

UAE/USA Presentation

Company type

United Arab Emirates: Freelance license in the Emirate of Dubai.

USA: Limited Liability Company (LLC).

Capital

Emirates: No capital.

USA: USD 100.

Accounting

United Arab Emirates: Maintaining accounting records is mandatory. No audit.

USA: Maintaining accounting records is mandatory. No audit.

Justifications of expenses and revenue

United Arab Emirates: Nothing to justify.

USA: Nothing to justify (unjustified expenses will be debited from the shareholder's current account).

Director/Partner

United Arab Emirates: 1 individual only.

USA: 1 individual only (who will be both manager and shareholder).

Residence visa

United Arab Emirates: Allows you to obtain a residence visa for the United Arab Emirates.

USA: Does not allow you to obtain a residence visa for the USA.

Bank account

United Arab Emirates: Personal bank account in the United Arab Emirates.

USA: Business bank account in the USA.

Applicable taxation

United Arab Emirates: No income tax. No social security contributions. No wealth tax.

USA: No corporate income tax (tax transparency for the LLC “disregarded entity“).

Expected time frame

View the timeline diagram

Documents to provide

Passport

United Arab Emirates: Passport copy.

USA: Passport copy.

Proof of address

United Arab Emirates: “Utility bill” (= water, electricity, gas, telephone, etc. bill) dated within the last 3 months. A copy (including in PDF format) is sufficient.

USA: “Utility bill” (= water, electricity, gas, telephone, etc. bill) dated within the last 3 months. A copy (including in PDF format) is sufficient.

CV

United Arab Emirates: Required by the Registry.

USA: Not required.

Business Plan and Diploma

United Arab Emirates: Depending on the requested activity (please contact us).

USA: Not required.

Bank selection

Emirates

Minimum deposit to be made within 30 days of opening the account and average monthly balance to be maintained in the account: AED 5000 (otherwise, a fee of AED 25 per month).
E-banking available: yes, free of charge.
Bank card: withdrawal limit of AED 15 000 per day (no other limit). No purchase payment limit.
Account maintenance fee: free of charge.
Opening time: 3 business days.
E-banking activation time: immediate upon account opening.
Remote account opening: no.

USA Bank A

Minimum deposit to be made within 30 days of account opening and average monthly balance to be maintained in the account: USD 3500 (otherwise, a fee of USD 11 per month).
E-banking available: yes, free of charge.
Bank card: free of charge. Daily withdrawal limit of USD 3500 (no other limit). No purchase payment limit.
Account maintenance fee: free of charge.
Account opening time: immediately during the appointment with the banker.
E-banking activation time: immediately during the appointment with the banker.
Remote opening: no.

USA Banque B

Minimum deposit to be made within 30 days of opening the account and average monthly balance to maintain in the account: no minimum.
E-banking available: yes, free of charge.
Bank card: free of charge. Daily withdrawal limit of USD 1000 (monthly limit of USD 4000). Payment limit of USD 2000 per purchase (monthly limit of USD 10 000 for purchase payments).
Account maintenance fees: free of charge.
Account opening time: approximately 1 week.
E-banking activation time: immediate upon account opening.
Remote account opening: yes.

USA Banque C

Minimum deposit to be made within 30 days of opening the account and average monthly balance to maintain in the account: no minimum.
E-banking available: yes, free of charge.
Bank card: free of charge. Daily withdrawal limit of USD 1000 (monthly limit of USD 30 000). Daily payment limit of USD 10 000 (monthly limit of USD 300 000 for purchase payments).
Account maintenance fees: free of charge.
Account opening time: approximately 1 week.
E-banking activation time: immediate upon account validation.
Remote account opening: yes.

Pricing for our packages

Package costs in USD
Payment by bank transfer or in cash at our offices in Dubai or Orlando.

Please note:

Office in Dubai: it is possible to rent an office from a business center such as Regus, ServCorp, etc.
Family visa (spouse/children): it is possible to “sponsor” your family so that they can also obtain a residence visa.

View the cost table

Package contents

Package Freelance License Dubai

Our package includes the following:

Issuance of the license.
Agent, consulting, and company follow-up fees in French.
Complete on-site support and assistance for appointments at the Registries.
Company stamp (in the local format in English and Arabic).
Company registered office address (scanning and mail forwarding included).
Correspondence address in Dubai (scanning and mail forwarding included).
Assistance with opening a personal bank account in Dubai (the freelance license allows professional funds to be received in a personal account).
Shared telephone and fax number in Dubai.
Online invoicing and accounting software (installation, configuration, and training).
Occasional use of a meeting room in our Dubai offices.
Delivery of documents, forms, faxes, etc. to your bank.

Package LLC USA

Our package includes the following:

Drafting of the Articles of Organization and the Operating Agreement.
Company registration.
Registered office (mail scanning/forwarding included) with a real physical address.
Obtaining an Employer Identification Number (EIN).
Agent, advisory, and company follow-up fees in French.
On-site guidance and assistance for the appointment with the bank to open the business bank account.
Drafting of the Board Resolution to open the company’s bank account.
Shared telephone and fax numbers.
Online invoicing and accounting software (installation, configuration, and training).
Tax returns for the company and its shareholder.
Coordination with the accountant to prepare accounting documents and tax returns.

Dubai Residence Package

Our package includes the following:

Obtaining a residence visa
Obtaining an identity card (Emirates ID).
UAE driving license (through a license exchange if applicable).
Assistance with opening a personal bank account.
All our advice regarding your relocation to the UAE: health insurance, accommodation in Dubai, children's schooling, etc.
We handle all the procedures for these applications and assist you on-site (accompanying you to the various departments in an air-conditioned vehicle with a driver from our offices). The member of our team accompanying you speaks French, English, and Arabic.

Sales taxes

Your dropshipping business may incur sales-related taxes.

The 2 main taxes are:

Intra-Community VAT for sales within the European Union.

It is important to check the Incoterm for your sales and, where applicable, appoint a tax representative. We can assist you in drafting your general terms and conditions of sale and appointing a tax representative.

Sales tax for sales in the USA

For all sales in the United States, you must charge sales tax, which varies by state. Specialized service providers can help you with monthly filings.

We encourage you to always verify that you comply with the laws of the countries where you sell your goods.