We have developed a specific solution for dropshipping professionals in order to target 3 issues:
– Personal Tax Residence in the Emirates (no income tax or payroll tax)
– Sale of Goods without taxation on profits
– Tax compliance (VAT, etc.)
The solution has two components:
- Obtain a UAE Freelance license, which allows you to obtain a residence visa for the Emirates, and open a personal bank account in Dubai. In parallel, a company is created in the USA with a professional bank account.
- Set up a non-resident, single owner LLC in the US. This company is “tax transparent”, meaning it is the partner who is taxed in their country of residence and not the US company. Since the partner is resident in the UAE, they will enjoy tax optimization because there is no personal income tax in the UAE.
Advantages:
– Global tax optimization (company and personal)
– Residence in the Emirates
– Good image of the USA
– Total cost of the solution is minimal
Disadvantages:
– Not suitable for an activity with several partners. (Multiple partners requires a variation that incurs more US tax.)
– Not suitable for complex arrangements (holding company)
– No professional bank account (in the name of a company) in the Emirates
We are the first and only agent to offer this UAE-USA solution. We deliver everything from A to Z inhouse because we are present in both Dubai and Florida.
A Company Overview: UAE/ USA
| Company Type | Free-lance license in the Emirate of Dubai | Limited Liability Company (LLC) |
| Capital | No capital required | USD 100 |
| Accounting | It is mandatory to keep accounts. No auditing. | It is mandatory to keep accounts. No auditing. |
| Justification of Expenditures/ Revenue | Nothing to justify | Nothing to justify (unjustified expenses will be debited from the associate current account). |
| Manager / Partner | A single natural person only. | A single natural person (who will be manager and partner). |
| Residence Visa | Allows you to obtain a residence visa for the Emirates. | Does not allow you to obtain a residence visa for the USA. (A Business Visa will be required for business trips to the US.) |
| Bank Account | Personal bank account in the Emirates. | Company bank account in the USA. |
| Applicable Tax | No income tax. No social security charges. No wealth tax. | No tax on company profits (LLC tax transparency/ “disregarded entity”). |
Timeline
Required Documents
| Passeport | Passport copy | Passport copy |
| Proof of Address | Utility bill dated 3 months or less | Utility bill dated 2 months or less |
| CV | Required by the UAE Register | Not required |
| Business Plan and Degree | Depending on the requested activity. Contact us. | Not required |
Choice of Banks
Bank A | Bank B | Bank C | |
| – Deposit min. to be made within 30 days of opening the account and average monthly balance to be kept on the account: AED 5000 (otherwise AED 25 costs per month). – E-banking available: yes, free. – Bank card: withdrawal limit of AED 15,000 per day (no other limit). No purchase payment limit – Account maintenance fees: free. – Opening times: 3 working days. – Deadlines for activating e-banking: immediate with the opening of the account. – Remote opening: no. | – Deposit min. to be made within 30 days of opening the account and average monthly balance to be maintained on the account: USD 3500 (otherwise fees of USD 11 per month). – E-banking available: yes, free. – Bank card: free. Withdrawal limit of USD 3500 per day (no other limit). No purchase payment limit. – Account maintenance fees: free. – Deadlines for opening the account: immediately during the appointment with the banker. – Deadlines for activating e-banking: immediately during an appointment with the banker. – Remote opening: no. | – Deposit min. to be made within 30 days of opening the account and average monthly balance to be maintained on the account: no minimum. – E-banking available: yes, free. – Bank card: free. Withdrawal limit of USD 1000 per day (ceiling of USD 4000 per month). Payment limit of USD 2000 per purchase (ceiling of USD 10,000 per month of purchase payments) – Account maintenance fees: free. – Account opening times: around 1 week. – Deadlines for activating e-banking: immediate with account opening. – Remote opening: yes. | – Deposit min. to be made within 30 days of opening the account and average monthly balance to be maintained on the account: no minimum. – E-banking available: yes, free. – Bank card: free. Withdrawal limit of USD 1000 per day (ceiling of USD 30,000 per month). Payment limit of USD 10,000 per day (purchase limit of USD 300,000 per month) – Account maintenance fees: free. – Account opening times: around 1 week. – Deadlines for activating e-banking: immediate with account validation. – Remote opening: yes. |
Pricing
- Cost of packages in USD.
- Payment by bank transfer or cash at our offices in Dubai or Orlando.
Please note:
- Dubai Office: it is possible to rent an office from a business center like Regus, ServCorp, etc.
- Family Visas: Immediate family members (spouse and children) can be sponsored.
Contents of Packages
Dubai Freelance License Package
Our package includes the following:
- Issuance of the License.
- Agent, consultancy and monitoring fees for the company.
- Full on-site support and assistance for appointments at the Registers.
- Company stamp (in local format in English and Arabic).
- Registered address (scan and return mail included).
- Correspondence address in Dubai (scan and forwarding of mail included).
- Assistance with opening a personal bank account in Dubai.
- Telephone and fax numbers shared 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, fax, etc. at your bank.
USA LLC Package
Our package includes the following:
- Drafting of the Articles of Organization and the Operating Agreement.
- Company registration.
- Company headquarters (scan / forwarding of mail included) with real physical address.
- Obtaining an Employer Identification Number (EIN).
- Agent, consultancy and monitoring fees for the company in French.
- On-site support and assistance for the appointment with the bank for the professional bank account.
- Drafting of the Board of resolution for the opening of the company’s bank account.
- Shared phone and fax numbers.
- Online invoicing and accounting software (installation, configuration and training).
- Tax declarations for the company and its partner in the company.
- Coordination with the accountant to prepare accounting documents and tax declarations.
Dubai Residence Package
Our package includes the following:
- Obtaining a residence visa
- Obtaining an identity card (EmiratesID).
- UAE driver’s license (as part of a license exchange if applicable).
- All our advice for your expatriation in the Emirates: health insurance, accommodation in Dubai, schooling for children, etc.
- We take care of all the procedures for these requests and assist you on site (support for the various services in air-conditioned vehicle with driver from our offices). The person on our team who will accompany you speaks French, English and Arabic.
Applicable Taxes
Your dropshipping activity can generate sales taxes.
The 2 main taxes are:
1. Intra-community VAT for sales in the European Union.
It is important to check the incoterm of your sales and to appoint a Tax Representative if necessary. We can assist you with the drafting of your general conditions of sale and the appointment of a Tax Representative.
2. The Sales tax for sales in the USA
For all sales on American soil, it is necessary to invoice the sales tax which is different for each state. Specialized providers can help you with monthly returns.
We invite you to always check that you are in good standing with the legislation of the countries in which you sell your goods.
