Offshore Company Business Setup: Everything you need to know
Offshore business setup differs from standard UAE businesses in several key ways. Most notably, offshore companies are not permitted to conduct business activities within the UAE. Instead, they are mostly used to hold stakes in other companies or to purchase real estate.
However, while offshore companies have very specific use cases, they also come with a broad array of advantages here in Dubai.
Offshore companies are primarily useful for:
Advantages of setting up an offshore company in UAE:
Helping to keep your business dealings private
UAE offshore companies have no obligation to maintain or publish financial records or details of any shareholders. What’s more, most jurisdictions will only supply this data to third parties, such as the government or legal authorities, if they believe there is a risk of terrorist or criminal activity.
For even greater confidentiality, offshore company owners can appoint nominee shareholders to handle official documentation. The nominee then issues power of attorney back to the owner.
A simple way to reduce your tax burden
Offshore companies offer a simple way to legally minimize a tax burden. In the UAE, such businesses can benefit from the country’s 0% tax rate on income and enjoy full exemption from customs tax, VAT, capital gains, and withholding tax however with regards to the Corporate tax there is an article yet for this hopefully by Feb or March there will be an update of the entire article.
The UAE also has double tax treaties with over 100 countries so shareholders who are nationals elsewhere do not have to pay tax on UAE income in their country of origin.
Keep your holdings safe from lawsuits and more
Offshore companies in the UAE can hold assets including real estate, intellectual property, stock and securities in complete anonymity outside mainland jurisdictions.
This type of corporate structure effectively acts as a robust legal wall protecting all holdings and assets from legal obstacles and third-party adversaries. For high-net-worth businesses and individuals, this can be a highly effective way to ward off frivolous lawsuits and the like.
Access the UAE’s world-renowned banking sector
UAE offshore companies are able to open multiple bank accounts within the country with local and international financial institutions.
This allows the company to send and receive money from other businesses and individuals from around the world. So, wherever held assets are located, the company can benefit from one of the world’s most robust and trusted banking infrastructures.
Depending on the exact needs of your business, bank accounts can usually be opened within eight weeks.
Minimal reporting requirements mean easy maintenance
A lack of auditing and financial obligations means that ongoing maintenance and running costs for offshore businesses are also lower than for other company types.
With no need for share capital or corporate document attestation, administration costs are always low. What’s more, as AGMs can be held anywhere in the world, the manhours required to run the business are minimal.
Own your company 100% with no outside influence
UAE offshore companies can be owned 100% by foreign entrepreneurs with no need to partner with a local agent or stakeholder. This leaves you free to run your business as you would anywhere in the world without outside interference. Though, of course, if you require local assistance, you are free to partner with a local shareholder or company agent as you wish.
Why choose us to set up your offshore company in dubai?
Offshore business setup in Dubai can be complex, especially for those unfamiliar with the local regulations and procedures. That is why it is highly recommended to work with a professional consultant who specializes in offshore business setup in Dubai.
A professional consultant like us can provide expert guidance and support throughout the entire process, from selecting the right offshore jurisdiction to completing the necessary paperwork and obtaining licenses.. By partnering with us, a professional consultant, you can save time, minimize risks, and ensure a smooth and successful offshore business setup in Dubai. Our expertise and knowledge of the local business landscape can make a significant difference in your offshore business venture.
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