EMI for UAE/Dubai

[JohnLocke]

I will hit the TW $5m limit next month, so my only option is to receive funds to a EUR account and convert back to USD. Will swallow 0.37% fee + losses in FX.

You have pushed aprox 5 million US$ through Transferwise already? That's awesome, there was another thread where people discussed how much to put through TW and the amount was way smaller about 20K max. Thanks for this piece of information.

Ebury supports UAE companies now,

You said you had opened an account there it didn't went well out for you or what's the problem?

CIM Bank, no reply.

Did you try to pick up the phone and call them to arrange a personal meeting? It may help you to get an account with them if you really want one.

Cost to open new company for new TW acct, around $15k.

Is that a problem with 5M USD in turnover?

 

[dxbkk]

You have pushed aprox 5 million US$ through Transferwise already? That's awesome, there was another thread where people discussed how much to put through TW and the amount was way smaller about 20K max. Thanks for this piece of information.

My business is very transparent and I receive regular payments from the same companies.

Did you try to pick up the phone and call them to arrange a personal meeting? It may help you to get an account with them if you really want one.

Good point. I'll do this tomorrow.

Is that a problem with 5M USD in turnover?

To be honest opening another TW would be my last resort option. I prefer to diversify, and also not risk/raise any flags that may harm my current account.

As per Rowena's advice, I will be opening a DMCC company and local office as soon as I can return to UAE in the next few months. I estimate this to cost around $30-40k. I will report back on here with my results!

 

[DGTLOTC]

dxbkk what kind of industry is your company in ?

if you don’t want to disclose publicly no problem just trying to think of why there’s been so many declines

 

[Nicholas Van Orton]

@dxbkk - Is your UAE business setup plan one for the long-term?
@rowena has already given you the basic input on 'legit setups' that should do for an "easy" local corp.bank a/c opening (though I insist on forgetting Emirates NBD at all costs nowadays, for a variety of reasons I don't need to go in detail, FAB or ADCB and even Mashreq/Noor are perfectly fine options). and honesty, I can't see the reasons behind using an EMI in the UAE instead of a bank (particularly if your answer to my Q is affirmative).
Your total cost estimate is fair (could be a bit higher, though (*)). The better you 'present' yourself (ie, not using a shared co-working office but renting a proper office, preferable in a 'prime' location such as Business Bay or JLT/DMCC), the easier it will be for you (and I daresay quicker). And bear in mind RE prices can always be negotiated lower in Dubai (one of the advantages of their perennial 'inventory glut' magic), up to 50% from asking price.

 

[dxbkk]

@dxbkk - Is your UAE business setup plan one for the long-term?
@rowena has already given you the basic input on 'legit setups' that should do for an "easy" local corp.bank a/c opening (though I insist on forgetting Emirates NBD at all costs nowadays, for a variety of reasons I don't need to go in detail, FAB or ADCB and even Mashreq/Noor are perfectly fine options). and honesty, I can't see the reasons behind using an EMI in the UAE instead of a bank (particularly if your answer to my Q is affirmative).
Your total cost estimate is fair (could be a bit higher, though (*)). The better you 'present' yourself (ie, not using a shared co-working office but renting a proper office, preferable in a 'prime' location such as Business Bay or JLT/DMCC), the easier it will be for you (and I daresay quicker). And bear in mind RE prices can always be negotiated lower in Dubai (one of the advantages of their perennial 'inventory glut' magic), up to 50% from asking price.

Yes it's long term.

I'll follow your advice regarding office space and reapply. Does the office need to be staffed also, will they make surprise visits?

 

[Nicholas Van Orton]

No, not at all, no surprise visits or anything like that...it's just part of the 'substance' when applying for a corp bank a/c, that's all. Check out Bayut, Dubizzle or PropertyFinder (this one particularly) for offers. The new 'hot' (pun intended) area in Dubai is close to the DWC/Dubai South (Aviation) freezone, where the new metro line is being built and around the area where the Expo 2020 will be held. Offices here have a good reputation and will come cheaper. Also check out the Al Barsha area, which is less known but considered a prime spot in residential real estate.
Also, I forgot to mention in my earlier post that if your business activity is finance-related, you should definitely go with a DIFC company and office rent set-up. If you don't, it will raise a red flag and a lot of question marks, let alone the fact that since it is a regulatory body, you need it to obtain an 'official' internal license for dealing in financial activities, which one must have (this from my own experience).
For any other activities (IT, logistics, trade, etc), the aforementioned DMCC and/or DWC (Dubai South - Aviation), will do.

 

[Nesso]

I currently use TW but am nearing the $5m annual limit.

Can anyone suggest any other reputable providers that support UAE businesses?

Can I ask you in which Freezone you are in as I am looking to get one in uae and not pick the worst. You can pm me if you don't want to make it public. Thanks.

 

[DGTLOTC]

DXBKK is USD a necessity for you to work with ? Can you work with AED,GBP and EUR i have a bank in mind ....if USD isn’t a necessity - don’t want to waste your time otherwise if it is

 

[dxbkk]

Can I ask you in which Freezone you are in as I am looking to get one in uae and not pick the worst. You can pm me if you don't want to make it public. Thanks.

Currently Fujairah.

DXBKK is USD a necessity for you to work with ? Can you work with AED,GBP and EUR i have a bank in mind ....if USD isn’t a necessity - don’t want to waste your time otherwise if it is

Unfortunately 100% of my payments are in USD.

 

[realdealbusiness]

Are there any offices available that have a kitchen, bathroom & shower built in that work in combination with a DMCC Free Zone?

Seems like all I find are empty rooms...even if I do not want to live in it, I would still prefer a microwave and a dish washer at least...

Also, could it be that residential apartments are not allowed to be used as office at all with Freezone companies?

Right now a real office seems overkill for me. I would either get a very nice apartment instead of a decent apartment and a shitty office for compliance I do not use.

 

[JohnLocke]

Right now a real office seems overkill for me. I would either get a very nice apartment instead of a decent apartment and a shitty office for compliance I do not use.

Sounds not like a bad idea! Actually if it is possible to rent or buy some nice Flat and have your company registered there for the benefits you could use it as a second residence or summer residence.

 

[realdealbusiness]

Sounds not like a bad idea! Actually if it is possible to rent or buy some nice Flat and have your company registered there for the benefits you could use it as a second residence or summer residence.

totally. The question is if it is possible by law or not in UAE?

Anyone familiar with the law in regards to FZ companies owning / renting a normal apartment?

I heard that it's not possible unless you get something in a "business center" but I hope this information is wrong.

 

[Nicholas Van Orton]

FZ Co address must be in a business address, hence why the free zones themselves offer the office rent (from a purely bare minimum presence) within some of their enhanced packages. Residential addresses are not considered.

 

[realdealbusiness]

FZ Co address must be in a business address, hence why the free zones themselves offer the office rent (from a purely bare minimum presence) within some of their enhanced packages. Residential addresses are not considered.

@Nicholas Van Orton That's sad because that would make things a lot easier if you are just starting in a new coutry.

Regarding offices:
Which type of office is sufficient for opening a proper bank account with any of the major local banks?

Obviously not a flexi desk but what about serviced desks / offices?
Or would you go straight to renting your own office?

What is the "cheapest" option in case one wants to just have it for compliance & bank account and how much would that be approximately?

 

[Nicholas Van Orton]

@Nicholas Van Orton That's sad because that would make things a lot easier if you are just starting in a new coutry.

Regarding offices:
Which type of office is sufficient for opening a proper bank account with any of the major local banks?

Obviously not a flexi desk but what about serviced desks / offices?
Or would you go straight to renting your own office?

What is the "cheapest" option in case one wants to just have it for compliance & bank account and how much would that be approximately?

Hi OP, Flexi Desk may be enough (not in the least because it is also offered by the free zones themselves) if you apply for a license in one of the top-5 and most respected places (DMCC, DWC, JAFZA, ADGM, DIFC). Just to give you an example that this is so and it does actually work in the mentioned FZs is the fact that most consultancy/accounting/HR companies in ADGM are located in the same Regus co-working space...and all of them are alive and kicking (some for over 15 years now).

On the other hand, if you want to go to the cheaper free zones, then you definitely need to consider renting a proper office (besides -perhaps obvious, but nevertheless needs to be reminded of- having a sound and solid business plan), which may offset the benefits of a lower entry cost... Again, there are people here that say having a basic setup and opening a corporate account in ANY of the edgy free zones is easy-peasy (I totally disagree and it is completely misleading and untrue), all happy sunshine and rainbows, that's why I've kind of stopped posting my real-life perspective on this. If this helps you in any way, happy for you, but I'm not going to extend any further on the topic.

NVO

 

[realdealbusiness]

Hi OP, Flexi Desk may be enough (not in the least because it is also offered by the free zones themselves) if you apply for a license in one of the top-5 and most respected places (DMCC, DWC, JAFZA, ADGM, DIFC). Just to give you an example that this is so and it does actually work in the mentioned FZs is the fact that most consultancy/accounting/HR companies in ADGM are located in the same Regus co-working space...and all of them are alive and kicking (some for over 15 years now).

On the other hand, if you want to go to the cheaper free zones, then you definitely need to consider renting a proper office (besides -perhaps obvious, but nevertheless needs to be reminded of- having a sound and solid business plan), which may offset the benefits of a lower entry cost... Again, there are people here that say having a basic setup and opening a corporate account in ANY of the edgy free zones is easy-peasy (I totally disagree and it is completely misleading and untrue), all happy sunshine and rainbows, that's why I've kind of stopped posting my real-life perspective on this. If this helps you in any way, happy for you, but I'm not going to extend any further on the topic.

NVO

helps a lot, thank you so much.

which of those highly reputable FZs would you choose for ease of doing business & which is the cheapest of them?

 

[JimBeam]

helps a lot, thank you so much.

which of those highly reputable FZs would you choose for ease of doing business & which is the cheapest of them?

The cheaper the FZ the harder is to get a bank account.

 

[rey skywalker]

i can open you acocunt at once if you deposit 100 k for investment

 

[dxbkk]

i can open you acocunt at once if you deposit 100 k for investment

Interested. With which bank?

 

[krisicash]

Reading this thread i am getting an impressiom that. Having. UAE Rak IBC +uae bank account is extremely hard to open, is that true? Anyone had uae bank acount opened easily there for rak ibc?