# anyone set up as FZ LLC?



## Anna returning (Aug 17, 2009)

Hi everyone,
I'm back in the UK tearing my hair out! Seems like a 'catch 22' situation:
My business has been approved by KV. 
I now need to come out to Dubai with all the necessary legal paperwork to finalise everything and get my work/residents visa, etc. 
KV say I must have a personal bank reference letter. HSBC in UK say there is no such letter. KV say: "Madam, you must have personal reference letter from your UK bank". HSBC UK say 'Computer says No'
Apparantly they can produce a letter which says that, on current evidence, you can afford to pay out a certain amount per month (and that must be requested by the submitor.. us submitees have no such power!) but that is it ... they cannot possibly produce a letter stating that you have been a customer for x amount of years and have y amount of capital.
I could rant for hours on the above, but I will resist the temptation (on this occasion  and simply ask: has anyone else encountered this problem, and how did you get round it?
Any help gratefully appreciated, and I look forward to meeting those of you up for socialising once I finally arrive (Again.. the 'returning' bit in my name being that I lived in Dubai 1995-97 with my now ex-hubby and kids. NB: Only the hubby is ex.)
Anna.


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## Andy Capp (Oct 5, 2008)

Rubbish.

You can set up an FZC for around AED35,000 or less - i did in Hamriyah free zone, i used Sun consultants to sort out all the paper work (they take a AED10,000 fee for bank guarantees etc.) Speak to Sunil on 050-6377326, 050-5698829


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## Anna returning (Aug 17, 2009)

Thanks Andy Capp. 
I have already done all the business set-up stuff and got approval in principle (and paid out money) through Knowledge Village. It's just the personal bank reference that's causing me headaches.


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## Andy Capp (Oct 5, 2008)

Why do you need a personal bank reference, I was never asked for one (thank god....)


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## Anna returning (Aug 17, 2009)

Dunno. It's specified on the list of documents I have to take in to DKV in order to complete the registration process as an FZ LLC at DKV
Try getting an answer from them as to why ... haha (I've tried!)


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## Andy Capp (Oct 5, 2008)

Get a bank guarantee then there's no problem, use Sun, they cahrge around AED2000 for a AED150,000 advance!


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## Elphaba (Jan 24, 2008)

We had to prove that we had AED 100k in a bank account to set up our RAK MFZC. (And the bank charged an extortionate amount to produce the standard letter!). You can offer a smaller guarantee if you use an agent, but we paid less overall by going direct and doing the work ourselves.

To my knowledge, it is standard to have to provide such a guarantee and the FZ people will want the monies to be in a UAE bank account.

-


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## Xpat (Nov 12, 2008)

Elphaba said:


> We had to prove that we had AED 100k in a bank account to set up our RAK MFZC. (And the bank charged an extortionate amount to produce the standard letter!). You can offer a smaller guarantee if you use an agent, but we paid less overall by going direct and doing the work ourselves.
> 
> To my knowledge, it is standard to have to provide such a guarantee and the FZ people will want the monies to be in a UAE bank account.
> 
> -


Well going direct may save money but you hve to go through load sof hassle as Andy hired consultants these guys will get bank guarantees and statements .

Recently Federal government stopped that bank guarantees for local companies dont know abt FZ.


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## Anna returning (Aug 17, 2009)

Thanks for all your replies.
I don't have any problems with setting up a bank account or anything like that. The FZ provide a letter that I take to the bank to open an account, and I have to deposit 50,000Dhs.
It's getting to that point that's the hassle ... ie the FZ need a personal reference from my UK bank before they'll finalise my registration within the FZ, and then give me a bank letter to take to a Dubai bank. My problem is getting HSBC in UK to produce such a letter .... which they say 'isn't in the system' (!) so they can't!! It doesn't sound like anyone on the forum has had this arise, but it was worth asking  I shall plod on trying to resolve it!


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## Andy Capp (Oct 5, 2008)

Anna returning said:


> Thanks for all your replies.
> I don't have any problems with setting up a bank account or anything like that. The FZ provide a letter that I take to the bank to open an account, and I have to deposit 50,000Dhs.
> It's getting to that point that's the hassle ... ie the FZ need a personal reference from my UK bank before they'll finalise my registration within the FZ, and then give me a bank letter to take to a Dubai bank. My problem is getting HSBC in UK to produce such a letter .... which they say 'isn't in the system' (!) so they can't!! It doesn't sound like anyone on the forum has had this arise, but it was worth asking  I shall plod on trying to resolve it!


Just out of interest, what's your business in Anna?

Are you here yet?

Any other help you need?


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## Anna returning (Aug 17, 2009)

Andy Capp said:


> Just out of interest, what's your business in Anna?
> 
> Are you here yet?
> 
> Any other help you need?


Hi again Andy Capp,
I am indeed here at the moment... twiddling my thumbs waiting for my FZ licence so that I can then open a bank account and then get all my visas/permits.
I was hoping they'd get it through before Eid, but no such luck.
Also frustrated that Real Estate agents are proving useless at getting back to me.
It must be because they are all overwhelmed with viewings  .... or perhaps they are already in Eid-mode 
In answer to your question, I run performing arts classes for children... something I've done as part of a franchise in UK for the past 11 years, now branching out on my own here in Dubai.


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## Vmoses (Sep 14, 2009)

Anna returning said:


> Hi again Andy Capp,
> I am indeed here at the moment... twiddling my thumbs waiting for my FZ licence so that I can then open a bank account and then get all my visas/permits.
> I was hoping they'd get it through before Eid, but no such luck.
> Also frustrated that Real Estate agents are proving useless at getting back to me.
> ...


Can you(and anyone else who opened an FZ company) run through the process for opening up your own business? How much does it cost? What is the latest info on bank deposits? Is there anyway to open up a business without a bank deposit? Can you get more than 1 visa say for a partner in the business?How long does the process take?

I looked into RAK FZ earlier this year - but since my business is homebased - I didn't want to shell out money for a virtual office I wouldn't need. Also - I got 3 different quotes from folks to set up a FZ company - and they were wildly diverging. I just let it go since didn't want to haggle on fees too - had enough of haggling at the markets.


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## Anna returning (Aug 17, 2009)

Vmoses said:


> Can you(and anyone else who opened an FZ company) run through the process for opening up your own business? How much does it cost? What is the latest info on bank deposits? Is there anyway to open up a business without a bank deposit? Can you get more than 1 visa say for a partner in the business?How long does the process take?
> 
> I looked into RAK FZ earlier this year - but since my business is homebased - I didn't want to shell out money for a virtual office I wouldn't need. Also - I got 3 different quotes from folks to set up a FZ company - and they were wildly diverging. I just let it go since didn't want to haggle on fees too - had enough of haggling at the markets.


Hi VMoses,
The Free Zones in Dubai all have standard rates. The best thing is to look on their websites. I'm with Knowledge Village, as my business is education-based. What field are you in? 
I don't really need an office either - I've always done the admin side from home :ranger: and then I run my classes in a hired venue, but it seems you have to have an office if you go down this route. Also, the size of your office relates to the number of employee visas you're entitled to!! :confused2: For instance, I have an open-plan office, which entitles me to 2 employee visas. If I want to employ 3 people later on, I have to graduate to an Executive Office!
Bank Account: yes, you must have one with a certain amount of fully-paid up capital, BUT it doesn't have to stay in the account once it's opened!! (ie You could borrow on a very-short term basis) I have to deposit 50,000Dhs. Then I go and pay KV the balance I owe them, which must NOT come out of the 50,000, BUT as soon as I've paid the balance, the bank release the 50,000 so you can take it out if you wish!!
My set-up costs total 45,000 Dhs, which includes the 'one-stop' visa/permit processing. Ongoing annual costs amount to about 31,350Dhs, which is annual rent and visa renewals. Basically that wipes out the 'tax-free' aspect if you're thinking of comparing it with costs at home (assuming UK) Unless of course profits are doing very nicely, in which case you do keep more than at home :clap2:
Hope that helps, but do check out the process on the websites. One word of warning... the application forms are a nightmare. basically non-sensical!! I got there though... eventually. Finally, the timeframe is theoretically about 14 working days (but it will take days to work out those forms first!!). I will let you know the reality in due course!
I did all the application online from UK, scanning and emailings things like passport and bank letters, and got the approval in principle whilst still in UK. I also got my office allocated whilst still in UK (and the corresponding rent!) because it ran over one month from when I got the approval.
Finally, another word of warning... they insist on you providing 2 alternative business names. I didn't and got it thrown back at me. They then refused my first choice!! I think it was because it had Dubai in the name, which they don't like.
Hope all that helps a bit.


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## Andy Capp (Oct 5, 2008)

Or, you do as i did and paid someone else to sort out all the crap fro you - I paid AED35k in total, inccluding the provision (but not the cost of) 9 visas - over and above mine of course.

Details are at the beginning of the thread.

I signed a few bits of paper and, as if by magic, everything happened....

It's not what you know.....

And Anna, the very best of luck with your operation, I hope it works out well for you, if you need any pointers (well I have been here a number of years) pm me, you just never know here....


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## Vmoses (Sep 14, 2009)

^Andy - you must be a man whose time is very valuable - I am not quite there yet. What's the breakdown between actual setup costs and the costs of service - roughly speaking? Thx.

Anna thanks for the detailed response. I'm in propreitary trading in stocks - have partners and trade on their behalf and we share profits. I want to set up in the free zone but am not inclined to pay for space I will defnitely not be using. I would do it myself but looking to gather more information first. And the hassle that you went through is eye opening.

I don't understand why you can't get a reference letter from your UK bank. Assuming you have a mortgage/loans - I would go the bank loan officer and say I need a letter of reference or something that shows that I'm a client in good standing. And if they refuse - ask to take it to a higher level. This whole episode seems slightly ridiculous.


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## Anna returning (Aug 17, 2009)

Vmoses said:


> ^Andy - you must be a man whose time is very valuable - I am not quite there yet. What's the breakdown between actual setup costs and the costs of service - roughly speaking? Thx.
> 
> Anna thanks for the detailed response. I'm in propreitary trading in stocks - have partners and trade on their behalf and we share profits. I want to set up in the free zone but am not inclined to pay for space I will defnitely not be using. I would do it myself but looking to gather more information first. And the hassle that you went through is eye opening.
> 
> I don't understand why you can't get a reference letter from your UK bank. Assuming you have a mortgage/loans - I would go the bank loan officer and say I need a letter of reference or something that shows that I'm a client in good standing. And if they refuse - ask to take it to a higher level. This whole episode seems slightly ridiculous.


I did get the letter in the end, but had to tell them what to write!! (This is HSBC Business banking in UK!) I am still totally amazed that they made such heavy weather of it. It took two trips to see the Business manager at my branch (and I did take it to a higher level on the second visit) followed by a telephone complaint to the complaints department, followed by 2 more phone calls, and even when I got them to agree to write the letter I needed, they were still insisting it was not standard procedure. And people complain about the standard of service here!! It really was a 'computer says no' scenario. As you say - ridiculous.


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