How to setup your RAKICC Company with a working bank account from the comfort of your home
COVID 19, Lockdown, Movement Restrictions, remote working, Travel bans.
This has been the modus operandi for 2020 and may well continue for a part of 2021 until vaccinations are complete.
Business had slowed down especially in early 2020 however things are trying to go back to normalcy.
The time to set your business in RAKICC with a bank account remotely is now!
You want to establish your RAKICC Company and banking account remotely with having to travel.
Yes, tell me more!
Ok you can setup your RAKICC company within 24 hours of providing all the necessary documentation and name approval. You know passports, CV’s, utility bills. We will guide you through don’t worry.
Just to recap the RAKICC Offshore Company is by far the most popular set-up for international entrepreneurs in the UAE. It is the easiest, fastest and cheapest way to start your business in the UAE for that matter. In addition, there are no annual audits or extensive reporting requirements and low maintenance costs.
Ok what about the company bank account? I heard that you have to fly to the UAE and meet with the bankers in order to setup your bank account.
Yes, that is correct in order to open a UAE bank account for your company you will have to fly to the UAE and meet with the bankers.
Yes; although the UAE is keeping high up with Health, Safety and Sanitation Protocols a lot of people feel discouraged to travel just now. Maybe they have small children or elderly parents to take care of.
OK you still haven’t answered my question. Where can I open a bank account for my RAKICC company?
The proposed way to open your business bank account is through an EMI (Electronic Money Institution).
I will give you the textbook definition:
Electronic Money Institutions are companies that are licensed to provide financial services to third parties and store their funds on special segregated accounts. Being more agile and fast in their operations, EMIs are a great alternative to traditional banks.
An EMI operates through an electronic online platform and its license allows the issuance of debit cards. By extension, payment transactions can be carried out by the clients of the EMI, either by using the platform or the issued debit card.
Ok tech guy what does that mean in plain English?
In simple English an Electronic Money Institution is an effective way to get a business account for your RAKICC company through the comfort of your own house.
EMIs can be a great alternative to banks. Since they are considerably smaller in size they operate at a faster pace and without the need to physically meet them.
You can get an IBAN in just a few steps and be able to send and receive payments on behalf of your company.
Yet again they do comply with all banking regulations in their country of setup. PayPal, Apple Pay, Google Pay; they are all EMIs by the way.
I’m reluctant do you blame me?
No not at all. You have to question everything.
Electronic Money Institutions are regulated. They follow lots of governmental regulations and have all necessary functions just like a bank. Most of the Electronic Money Institutions that we recommend are regulated by the UK Financial Conduct Authority. So that makes it certain that checks and balances are in place.
EMIs are built for the digital era and the digital entrepreneur. EMIs adopt all possible options and provide their customers with choice. Whereas financial institutions often work with card payments and wire transfers, EMIs can easily have dozens of payment options, that may be better for their clients.
So how do they fare as opposed to traditional banks in terms of service?
EMIs do compliance. Period. They are regulated after all.
Their difference form traditional banking is that EMIs introduce modern and progressive compliance procedures that will offer better protection from fraud with less paperwork.
Plus, you will get answers and customer service at a fast rate. This avoids the hassle of going back and forth and wasting precious time.
Ok what’s the catch 22 then? What their cons?
Sure they are twofold.
Firstly, EMIs in their majority are smaller companies and bear limited liability. Thus, the governments are restricting the maximum number of transactions per day and their size for each client of EMIs. However, for the majority of cases, these restrictions are still way ahead of real needs.
Secondly is that they don’t benefit from any minimum guarantee bank deposit if the whole thing goes bust. Yet however you do not need to keep you eggs in one basket. You can transfer dividends to your personal bank account if you so prefer. Or anywhere that makes you feel safer if you are new to this concept.
Ok got it; remind me again the benefits of a RAKICC company?
RAKICC companies have a lot of very interesting features from which you can highly benefit. And a number of benefits you don't find in other white listed jurisdictions in the world.
RAK Offshore companies have the following benefits:
0% Corporation tax, 0% Capital gains tax and 0% Income tax
No requirement for the owner or director to visit the UAE in person
100% full foreign ownership
Confidentiality is preserved; there is no public record of shareholders or directors
No audit requirement or requirement to submit financial statements
Possibility to provide economic substance in a real economy if required
A registered office in Dubai (through Freemont Group)
Wait I do have an offshore company already somewhere exotic? I can’t use it though as it has no bank account
Why not re-domicile it to Dubai then? The recent attacks by governments worldwide have made traditional tax havens obsolete. A growing number of banking establishments refuse to open bank accounts for several types of companies located in tax havens due to their bad reputation.
If you already have an offshore company and cannot use due to different reasons you can re-domicile it to Dubai. A growing number of companies have been re-domiciled to the RAKICC.
Ok I am interested. Final question why should I use you guys? Why use Freemont Group?
We are a European managed company that has been setting up UAE companies since 2006. As registered agents in RAKICC we know the right persons in the authorities and we have set up hundreds of companies in the UAE. So you will experience setting up your business the most cost effective and time efficient manner.
We run a one stop shop so rest assured we got you covered. From accounting, audit, tax planning and nominee services we can do.
In any case, it is best to talk to one of our experts
who can instantly tell you the best solution for your business.