Offshore Company Formation in UAE
Over the last few decades, Dubai has changed drastically, firmly establishing its roots as an international business hub in the Arabian Peninsula and the World. As it enjoys a strategic location, pro investment atmosphere and specialized incentives, Dubai has managed to rank among the leading economies for business set up ventures. One amongst these ventures is Offshore company formation in Dubai, one of most popular company registration tools in UAE.
Setting up an Offshore Company
Establishing an offshore corporation has many benefits such as minimum in taxes and maximum earnings. The following additional benefits and operational freedoms also ensue the setup of an offshore company.
Permitted Activities
Offshore agencies are not permitted to conduct any sort of business or operations within the UAE, but they are free to run their business outside the region. However, such businesses are privy with offshore company formation with bank account. By UAE law, offshore companies can open confidential bank accounts to maintain their financials and transfer funds. Since the UAE does not allow overseas operations to be conducted within the jurisdiction, there is no need for a license or permit to establish an offshore company.
Property/Physical Presence
With the exception of free zones, offshore companies are not permitted to purchase real estate or property in the UAE, although they can still lease property. This helps reduce overheads of paying for a work space in UAE, managing its resources and other expenses associated with running an office.
Tax Benefits and Cost Structure
Dubai offers a tax free environment to encourage the establishment and growth of businesses. Corporations in Dubai do not have to pay corporate taxes which allows growth and expansion of the business since profits are tax exempted. Hence, Dubai provides the perfect environment for offshores business to prosper, avail banking provisions, enjoy no restrictions on foreign currency and employee discretion. Offshore establishments require no minimum capital, making their cost structure relatively low and effective.
Audits and Privacy
Offshore companies are not obliged to submit any sort of a financial report. In fact, due certain government endorsed laws offshore agencies are granted certain business confidentiality. Bank transactions, investments and even shareholders’ names are kept private from the public and international records.
Legal Aspects
Offshore company registration is one of the best tools for asset protection. From a legal perspective, this proves significantly effective in protecting against potential lawsuits as your assets will be placed in a secure legal body. Offshore companies are difficult to find and without a company name, their ownership is hard to prove in court. Even after a creditor pursues that far, the procedure to reveal assets and go after them requires thousands of dollars in non-refundable bonds and endless court hearings.
Number of Share Holders and Directors
At least 2 non corporate directors, and maximum 5, are required to start up an offshore company. Shareholders or investors do not necessarily need to be UAE nationals and can either be corporate or non-corporate personnel and can have 100% ownership.
Setting up an Offshore Company
Establishing an offshore corporation has many benefits such as minimum in taxes and maximum earnings. The following additional benefits and operational freedoms also ensue the setup of an offshore company.
Permitted Activities
Offshore agencies are not permitted to conduct any sort of business or operations within the UAE, but they are free to run their business outside the region. However, such businesses are privy with offshore company formation with bank account. By UAE law, offshore companies can open confidential bank accounts to maintain their financials and transfer funds. Since the UAE does not allow overseas operations to be conducted within the jurisdiction, there is no need for a license or permit to establish an offshore company.
Property/Physical Presence
With the exception of free zones, offshore companies are not permitted to purchase real estate or property in the UAE, although they can still lease property. This helps reduce overheads of paying for a work space in UAE, managing its resources and other expenses associated with running an office.
Tax Benefits and Cost Structure
Dubai offers a tax free environment to encourage the establishment and growth of businesses. Corporations in Dubai do not have to pay corporate taxes which allows growth and expansion of the business since profits are tax exempted. Hence, Dubai provides the perfect environment for offshores business to prosper, avail banking provisions, enjoy no restrictions on foreign currency and employee discretion. Offshore establishments require no minimum capital, making their cost structure relatively low and effective.
Audits and Privacy
Offshore companies are not obliged to submit any sort of a financial report. In fact, due certain government endorsed laws offshore agencies are granted certain business confidentiality. Bank transactions, investments and even shareholders’ names are kept private from the public and international records.
Legal Aspects
Offshore company registration is one of the best tools for asset protection. From a legal perspective, this proves significantly effective in protecting against potential lawsuits as your assets will be placed in a secure legal body. Offshore companies are difficult to find and without a company name, their ownership is hard to prove in court. Even after a creditor pursues that far, the procedure to reveal assets and go after them requires thousands of dollars in non-refundable bonds and endless court hearings.
Number of Share Holders and Directors
At least 2 non corporate directors, and maximum 5, are required to start up an offshore company. Shareholders or investors do not necessarily need to be UAE nationals and can either be corporate or non-corporate personnel and can have 100% ownership.