| by Kenneth Chase | 2 comments

Registering a property in a company’s name. Dubai


– We should probably think about having – at least five properties under this company – to make it feasible for the max – Hi guys! – This is the second part with Marsel – We already had one video – where we discussed with him – how you can get a visa by opening a company in the UAE. – In this video, Marsel I want to ask you a few questions – about registering the property under the company’s name. – There are such requests from the clients – So let’s say if somebody comes to you – and ask this question, what would be your suggestions – and what are the fees related to this – and how long it will take to register such a company? – It’s a quite popular question. – And of course, there are several tools – and instruments on how you can reach the goal. – To us it all depends on the ultimate goals of the client. – There are some cheap solutions on registering – let’s say an offshore entity in the UAE. – There are two different jurisdictions – one of which is in Dubai, another is in Ras Al Khaimah – Further, register the property under the name of the company. – This is one of the most basic – and most budget options just for the purpose of holding those real estate assets. – If the goal of the client is to further make this property – or commercial use let’s say if they would ever rent it – and they want to accumulate some profits on a bank account – then, of course, we should consider about – the local resident company may be in the free zone – they would be able to open a bank account – and register the property at the same time so that – they do further management – and the profits would be managed – from that bank account. – So the first option that you said, – it’s to register the company even without the bank account. – It is possible, yes – and this will be cheap. – It’s a very rare option – I assume like many people who are buying – they’re considering to rent the property so … – But still, tell us what would be the price to just open the company – or just register some property under the cheap option? – Okay, the cheap option would start probably – from around between $3500 or $4000 – This will include the company incorporation phase – and the No Objection Certificate from that particular jurisdiction – to register the property under that entity. – Now if we consider the option in – for instance free zone in Dubai – the budget will be a lot higher – can reach out to $25 000 or $26 000 for a set up of the company – Let’s say the bank account – and then having the same no objections certificate – from the registry to just have that – property under the entity’s name – How long will it take to set up such a company? – Well again, I would probably tell you the average – and the maximum time. – The average time would take 4 working days – that’s for the cheap options – and if we’re talking about more complicated setup – to buy in free zones. – It may take up to one month. – I see and can another company, – which is not based in Dubai – can they own – the local company that is buying the property. – So let’s say there is a company somewhere in the Caribbean or British Virgin Islands – can they own a company over there – that will buy other properties? – Is it possible? – It is possible. – The only complication I see is – that any decision – any modifications to the company – it should be done on the level of that mother company – that holds the UAE company – and then the only inconvenience in all this model – is that the documents should be attested – by the ministries since – UAE didn’t sign a convention – and they do not accept the Apostille. – And there is one more thing that – I want to say from my side – as being an agent who is involved in the transactions – that the government over here – they will always ask to show who is the ultimate – the ultimate beneficiary of the company. – That’s correct. – So there could be a chain of companies – that own that property but the government over here will keep on asking – who are the ultimate beneficiaries – people who own the company – and in case if there will be any changes in the ownership – the Land Department over here will ask you – to pay the transfer fee. – Just to give you an example. – Let’s say we will not consider the chain of the company. – Let’s say Marsel and I own Or let’s say I own a company over here in Dubai – that owns a property, I just bought a property. – Before what was possible to do – I could come to Marsel and say – “Marsel, buy my company – and you will have the property as well.” – So you see now he owns the company – now he can get the rental money and stuff. – But this interaction wasn’t registered in the Land Department – so we didn’t pay 4% registration fees. – So right now the Land Department will ask – who was the owner in the beginning – and who is the owner now – And in case if they are different people – they will ask to pay the transfer fees. – So this is how it works – and it’s the same when there is a chain of the companies – and yeah, it might be a little bit complicated – but if you want us to clarify anything – you can find our numbers in the description – and we will answer these questions. – Marsel, what are some main mistakes in this part? – Like when people are opening the company to buy a property. – What do you see what is happening on the market? – We have a very fresh example – the practical example of what happened – A company held the property for last – let’s say five or six years – and it had a valid bank account at that time – since newly taken regulations and amendments – of the current policies in the bank’s – the banks started closing the accounts to a certain extent. – So this company was one of those – cases when they had their account closed – and they didn’t really oversee this situation. – and they entered into the deal with a potential buyer – and they signed the documents for sale – so now technically speaking the company being an owner – that has no valid bank accounts – but by the rules of the Land Department – the buyer should pay to the seller directly as its mentioned in the title deed. – Basically what will happen. – The company will have a cheque under the company name – which is not possible thing – But how can people protect themselves from such cases? – Well, the first protection is – we always recommend is to have as many bank accounts as possible. – That’s first of all. – So you cannot be based only on one bank account these days. – You need to have at least one alternative account as a spare option. – But let’s assume that this case ever happened – if you are in a situation when you hold the company – that holds the property in its turn. – It’s probably time to think on how to change the title deed. – So instead of your company, you need to put your name back again. – So these wouldn’t be classified as the sales and purchase – and it will be classified as the grant – Like a gift, we can say. – I think that’s the only option. – And how difficult is it to open a bank account for such company? – To be honest lately, it’s quite difficult – to open a bank account for any company. – What is the reason behind it? – Well, the reason is that the the banks – they are minimizing their own risks based on – different factors, let’s say the nationality factor or business model factor – That the people may enter into agreements with – sanction entities or sanction countries and other things so – it’s a multi-touch point approach – which is based on the risks. – Now if we position the case that – the company holds only the property – and it’s leasing only the property as the core business of the company. – This is not a bad idea – but we should think about the volume – the turnover of the funds that is routed from this account – because the local banks wouldn’t be literally interested – to open an account for a company – which holds only one property and generates – let’s say a hundred thousand AED or USD. – So if we position the case – purely as the property holding asset company – and that’s the core business – we should probably think about – having at least five properties under this company – to make it feasible for the banks – to oversee the volume of the funds – And let’s say if I am worried – that I might not get the bank account. – Is it possible for me to buy a company – with this existing bank account? – You may absolutely yes. – The thing is it’s not a very popular model in the UAE – for instance, if we compare the practice in BVI – or Seychelles or any of those small jurisdictions – when they have hundreds of shell companies ready for sale – it’s not the case in the UAE. – Yes, it is possible to find either an offshore company – or onshore company with the active bank account, – but then it’s we can say it’s not a usual case, – yes, you will have to be behind it – and look for options and ultimately you will find – The thing is that the prices would drastically differ – because if it’s ready business with ready bank account – probably budget can go up to three or four times more. – I see – And who will do the audit of the company? – to make sure that there is no debts – that the company has how does it work? – Is it you who are providing the service or somebody else? – We do provide such services – and in general, if we are looking – for available options, we actually rely on our sources – that we’ve checked through the past – and our experience. – Yes, of course we are preparing – the audit statements and a general report on the company – to state that there is no loan obligations – there are no contractual obligations – and that the company is fully solvent – Yes, only in that case – we are going ahead with the deal – just to make sure that both parties are satisfied and safe. – Guys, as you see there are a lot of different options – and a lot of hidden things in all of this – and obviously, the easiest way to discuss this – is to get in touch with Marsel. – I will leave his contact number and email – you can text him by the WhatsApp and send him an email – and Marsel will clarify these things – because once again a lot of different options – and there are different cases – and we cannot say that there is one right solution – Right, there is no perfect formula, – you know it always depends. – Okay, Marsel, thank you once again so much – for your time. – It was a pleasure. – Guys, please leave your questions – in the comments under this video – maybe from time to time – Marsel will come and answer them – in the comments on YouTube. – Thank you, – and we’ll see you in the next video. – Goodbye!

2 Comments

Animepro100

Nov 11, 2019, 3:06 am Reply

What if my business model is selling digital video courses and internet marketing for other peoples products? I earn income in USD. Can I get a business visa under my brand name?

marie leola castro valle

Jan 1, 2020, 2:30 pm Reply

Hi Denis
I've been watching your YouTube videos showing the real estate procedures.
Today's whole day trying to file up all your teachings.
I'm now unemployed and in God's Grace and Mercy an investor unknown person find me to trust me to work with him. I need a good person to give me a training and understand well entering into realty business.
Marie here of my contact 050 4673240. Many thanks of this opportunity. Looking forward talking to you in person.

Leave a Reply