Since the past decade, UAE has gradually emerged from an entrepreneurial oasis, to a full on global investment juggernaut. With an ever welcoming business eco-system, specialized zones, incorporation incentives and world’s finest infrastructure, the country bags several top positions in global economic rankings which makes it a soundly popular destination to invest among foreign businessmen. While taking the lead in the Gulf, the UAE’s crown jewel, the Metropolis of Dubai is undoubtedly its main attraction. Inhabited by a melting pot of cultures from over 200 nationalities, the city boasts the most diverse community of tourists, entrepreneurs and tycoons than any place in the world. While many companies are centered on areas of defined business activities, a major portion also invests in another form of incorporation known as the Offshore Company Formation.
What is an Offshore Company?
In professional terms, an offshore company is an entity that thrives outside in foreign country to enjoy financial, administrative and legal freedom denied in the investor’s country of origin. More or less, an offshore, overseas or shell company is a financial legal tool erected to protect the investor’s assets from legal actions ordered by court or the country or origin’s legislature. The offshore company in Dubai privileges from tax avoidance, financial privacy, operation freedom and administrative secrecy. A vast number of investors flock to Dubai every year for Offshore company formation. Here what you need to know about Dubai’s offshore company benefits.
Cost Effective Business Solution
Setting up an offshore company in Dubai is a simple, seamless and cost effective process with relatively relaxed requirements and no restrictions on foreign currency. It does not require a UAE national, sponsor or shareholder and allows 100% foreign ownership of the business with minimum capital. All income and corporate taxes are exempted and complete repatriation of capital and profits are permitted. An offshore office space is not needed, so there are no added costs and no public register of company management. Multiple multi-currency bank accounts can be practiced and real estate properties can be owned on locations endorsed by the concerned Authority.
An offshore company formation in Dubai provides a tax-free business structure, allowing the investor to conduct transaction and business deals without any tariffs or tax deduction. The UAE is white-listed, has Double Taxation Avoidance Agreements (DTAA’s) with more than 40 countries, and is an independent or ‘overseas’ region. The country is a thriving tax free utopia with specialized jurisdictions such as free zones which allow 100% repatriation of capital funds, 100% exemption on personal, income and corporate tax. Offshore companies in Dubai are entitled to the same benefits and are also located in the same jurisdictions.
It is a good idea to protect your assets by placing them in a different legal body in a company in your own country or in an offshore company. Since an offshore company is harder to find, has an exhausting legal process to declare assets and enjoys legislative protection from the UAE government, the creditors are most likely to return in dismay after making their attempts towards a Dubai offshore company.
An offshore company removes the company’s name from its assets, thereby, providing legal protection. Lawyers usually conduct an initial search to find assets which may be used during a prevailing ruling. An offshore company formation Dubai can be used to identify assets and move them to the offshore company formation and is a sound way to dissuading such lawyers, averting litigations and possible unfavorable rulings because it is potentially harder to locate assets in foreign countries like the UAE and difficult to prove their ownership. Subsequently, in many jurisdictions, litigations need to take place in the country where the problem arose because foreign legal rulings are not accepted aside from criminal tax fraud, money-laundering, weapons and drug smuggling.
An offshore company formation in Dubai can provides a high degree of privacy in terms of business conduct, personal financial investments, bank transactions and government reports, making it impervious to any foreign investigation attempts. In fact, company management, beneficial owners and shareholders may be excluded from company documentation or any public records.
How IBG Can Help?
IBG Consulting is UAE premier business consultancy and setup agency, catering a broad range of business formation solutions for all type of investors. We understand every business requires a customized plan to help it nurture and grow in UAE’s rich economic landscape. Whether it is a Mainland LLC formation, a Free Zone company or and Offshore incorporation, we have the best teams to provide efficient strategies in the most competitively priced packages. Get in touch with our consultants now or learn more from our website ibgme.ae.