I guess if you have a large US and UK market - you will have a main company that own a subsidiary in your primary markets i.e. MyCompany Payments Ltd and MyCompany Payments LLC to handle the payments. Pass the payment through for an admin fee. Just we have seen the FANG companies doing it over the years. Just because the main entity is in UAE, Singapore, Belize etc then that doesn't really change that strategy? The subsidiary is generally a good idea for also gaining access to local payment options... Such as SEPA in Europe, Klarna (UK + Some european countries) etc. This is certainly one of the ways we are thinking of our future set ups. You are absolutely right in that if you have to pay 2.9% + 1% conversion fee + 1% non-local-card fee and you have a net fee of your profit of around 5% - then this is absolutely worth it. The first 100-200k you process probably pays for the structure and the added admin. Anything above is saved... :-) Great video btw! Keep up the good work.
Good comment but how much are the wire transfer fees from EUR/USD account to AED account. I’m sure you will save 1-3% but not sure if it’s worth the hassle unless the revenue is in millions 🤔
If for instance a UK ecom company processed the payments then the UK company sent the profits/management fees to a UAE parenting company, wouldn’t the UK company still be hit with VAT on all its total sales? Making it much more beneficial just to trade from the UAE with the increased card service fees?
I believe for your non-UK customers, you don't need to charge any VAT at all. U can probably just register a US LLC just to save your UK customers from paying UK VAT.
@@Neuroman Wow, I just asked a question about the US LLC pass thru. I'm planning to move to either Portugal or UAE and set up my tax residency there. If most of my clients are US based with the US gov't tax my profits even though the owner lives abroad and is NOT a US citizen?
Saw a video about how someone uses a US LLC as a pass through entity to "transfer" revenue to a UAE FZCO (which owns 100% of the US LLC.) Is the act of transferring revenue from the LLC to the UAE company a tax-free transfer? If I have mostly clients from the US would the US somehow tax the profits since the clients are US based but my residency and tax residency is elsewhere? If the US does tax the profit, would UK LLP be better served for the purpose of serving my US clients? I am a Canadian citizen
![BLACK BAG - Official Trailer [HD] - Only in Theaters March 14](http://i.ytimg.com/vi/Du0Xp8WX_7I/mqdefault.jpg)
I love your honest, unbiased videos,and you do not sugar coat problems.
Thank you! 🙏🏻
I guess if you have a large US and UK market - you will have a main company that own a subsidiary in your primary markets i.e. MyCompany Payments Ltd and MyCompany Payments LLC to handle the payments. Pass the payment through for an admin fee. Just we have seen the FANG companies doing it over the years.
Just because the main entity is in UAE, Singapore, Belize etc then that doesn't really change that strategy?
The subsidiary is generally a good idea for also gaining access to local payment options... Such as SEPA in Europe, Klarna (UK + Some european countries) etc.
This is certainly one of the ways we are thinking of our future set ups.
You are absolutely right in that if you have to pay 2.9% + 1% conversion fee + 1% non-local-card fee and you have a net fee of your profit of around 5% - then this is absolutely worth it. The first 100-200k you process probably pays for the structure and the added admin. Anything above is saved... :-)
Great video btw! Keep up the good work.
Good comment but how much are the wire transfer fees from EUR/USD account to AED account. I’m sure you will save 1-3% but not sure if it’s worth the hassle unless the revenue is in millions 🤔
If for instance a UK ecom company processed the payments then the UK company sent the profits/management fees to a UAE parenting company, wouldn’t the UK company still be hit with VAT on all its total sales? Making it much more beneficial just to trade from the UAE with the increased card service fees?
I believe for your non-UK customers, you don't need to charge any VAT at all. U can probably just register a US LLC just to save your UK customers from paying UK VAT.
Best video!!!!! Had this exact problem
Happy to be of service :)
Anything you'd like to see next?
This is pretty spot on. I’ve had exact experience in UAE
How did you deal with it?
@@OffshoreCitizen opening a pass through US LLC
@@Neuroman Wow, I just asked a question about the US LLC pass thru. I'm planning to move to either Portugal or UAE and set up my tax residency there. If most of my clients are US based with the US gov't tax my profits even though the owner lives abroad and is NOT a US citizen?
Saw a video about how someone uses a US LLC as a pass through entity to "transfer" revenue to a UAE FZCO (which owns 100% of the US LLC.) Is the act of transferring revenue from the LLC to the UAE company a tax-free transfer? If I have mostly clients from the US would the US somehow tax the profits since the clients are US based but my residency and tax residency is elsewhere? If the US does tax the profit, would UK LLP be better served for the purpose of serving my US clients? I am a Canadian citizen
Are these payments subsidiaries taxable in their countries?