Offshore companies are among the three popular company registration methods when finalising your business setup in UAE. Companies that prefer fiscally sound policies and discrete asset protection opt for offshore company formation in Dubai and other parts of UAE. Offshore companies are basically legal tools that prevent/undermine the efforts of any creditor, organization or country to pursue onto an investor or business entity’s wealth.
Asset protection is essential especially in case of a business dispute, divorce settlement or if an investor is subjected to biased foreign judgment, or even foreclosure shortfall judgment. Therefore, when an investor converts their assets to a foreign offshore company, the legal opponent has very little chance of pursuing after the assets.
Offshore companies are shielded by strong asset protection laws as they are owned by more than one legal entity or stakeholders who are either employees or partners of multinational companies. This makes it difficult for a legal opponent to target an offshore company’s assets. Also, designated laws and regulations allow offshore companies protection against audits, fiscal reports and even lawsuits.
While mainland companies are obligated to acquire a Business Trade License in order to conduct their business operations, offshore companies can exist to breathe without it. The constitutional documents allotted to offshore companies are basically the proof of legitimate presence and effectively serve as certificate of incorporation and the memorandum of association by the state of UAE.
Aside from a list of benefits and exemptions offered to offshore business trusts and LLCs, entrepreneurs and investors also enjoy confidentiality of their financial records as a part of UAE to guard the privacy of offshore companies. Through these laws companies are entitled to secrecy by the state in terms of asset protection and discretion of maintaining its financial records as private, as long as the businesses intend on.
While laws forbid offshore companies to conduct their business activities in UAE, these companies can carry out their business operations and investment strategies outside the country without the fear of scrutiny or legal action by the host country. This shields their assets and shares against individuals, government departments of other countries.
Business that prefer purchase of property or shares without the risk jeopardizing their assets can easily open an offshore company. At IBG Consulting we offer turn-key asset protection solutions UAE in the most favorable jurisdictions such as Ajman offshore, RAK offshore and Jebel Ali offshore which provide various incentives such as financial security, legal support, exemption from physical presence in the zone and other incentives through a competitive and fast track setup.