Many people invest in Dubai wrong first step: ODI filing is the most critical procedure in China

When many bosses talk about going out to sea and Dubai, their first reaction is:

"First find a reliable agent and register the company."

but in practice, I have seen too many situations: the company has been registered, the account has been opened, and the project has been negotiated. In the end, it is not Dubai that gets stuck, but at home.

The problem often lies in a link that many people ignore: ODI Filing.

Why do many people go wrong in the first place?

in the cognition of many bosses, the logic is this:

business is overseas → company is in Dubai → money can be transferred out naturally.

But the reality is in the opposite order.

In China, as long as it involves foreign investment of enterprise funds, banks, foreign management and business systems will first ask a question:

is this money a compliant foreign investment?

And ODI Filing is essentially this "compliance entrance".

02ODI Filing can solve what problem?

you can understand it as a sentence: ODI is a prerequisite for the "legal exit" of corporate funds.

Without it, common scenarios are:

1, the bank can not release large investment funds.

2, the export path is repeatedly asked, delayed

3, can only split the amount, around the path (very high risk)

4, later profits want to remit back to the country, the procedures become very passive.

These problems may not explode immediately, but once the project is large, they will basically appear in a concentrated manner.

03 "ODI first, then register"

why more stable?

Many people register their companies in Dubai first and then go back to ODI. However, in actual operation, there will be a problem in doing so:

domestic "identity" and overseas "structure" are out of touch, and most cities may not give you the opportunity to make up.

And the correct logic is:

complete ODI Filing in China first

clarify the investment subject, amount and purpose

then use this compliance path to build a Dubai company.

The benefits of this are:

1. Clear funding path

2. Overseas equity is recognized by the domestic

3. Dividends, exits and reinvestments will be smoother in the future.

You are putting the rules in place at the beginning, not filling in loopholes afterwards.

04 Many people underestimate the "follow-up impact"

ODI is not a "do it or not" procedure, but to determine whether your overseas investment can be used for a long time, in compliance with regulations and repeatedly.

Includes:

can profits be repatriated normally?

Can overseas companies be recognized by the domestic system?

Whether the follow-up financing and restructuring are smooth

these problems were not seen when the company was first established, but they often began to appear in the second and third years.

Conclusion

if you plan to invest in Dubai, the really safe sequence is actually very simple:

first, the domestic compliance path will be followed by the overseas corporate structure. Take this step right, and the following things will become more and more active.

Zhuoxin Enterprise provides agency services such as domestic and foreign company registration, bank account opening, annual tax return, agency bookkeeping, trademark registration, ODI Overseas Investment Filing, etc. If you have any business needs in this area, please feel free to consult our online customer service!