UAE offers myriads of different possibilities for international entrepreneurs and investors. Setting up a company in the Emirates opens a vast sea of opportunity, for everyone who has a business acumen in them, especially for the high-net-worth individual.
Registering an Offshore Company in Dubai is an excellent option for people who want to open a bank account in Dubai, have a legal entity, and yet keep costs low. Dubai is one the most stable and well-known jurisdictions in the world. It is also a widely acknowledged fact that Dubai is the best resort for tax planning and assets protection.
What is an Offshore company?
An offshore company in Dubai refers to a business that operates outside its geographical boundary. For example, if a business that is established in Portland, USA wants to set up operations in UAE, but does not have physical activity in UAE, the new entity in UAE can be registered as an offshore company.
An offshore company is set up in zero or low tax jurisdictions, and is protected by specific legislative laws which confer a special status to it. This type of company enjoys full tax exemption and a high level of privacy and security. UAE offers the two main offshore jurisdictions – one in Jebel Ali and the other in Ras Al Khaimah (RAK)
The offshore facility is often availed by entities who require a regional “tax relief-invoicing-facility”. With no minimum capital requirement and no actual office address, the offshore registration laws and regulations have been set up according to international standards.
Companies just need to have just one director and maintain financial records. There is no requirement to submit annual financial report to the free zone (registrar). An offshore company should also act like a regular company by holding annual general meetings, but even this can be attended in absentia. The company regulations have been made out in strict conformity with new anti-money laundering measurements, making the UAE Offshore Registries safe incorporation jurisdictions.
An offshore company can associate with local legal consultants, accountants, management companies to carry out its business in the UAE.
It can open bank accounts in UAE and carry on financial transactions with any bank in the UAE for its business operations. A couple of restrictions are that one cannot have physical office with an offshore company, one cannot get residence permits in UAE and physical business in not possible in UAE. An offshore company must obtain the right licence to conduct trade or other business activity if wishes to conduct business in the UAE.
Benefits of an Offshore Company Registration in Dubai
Tax Benefits: The first and foremost reason for registering an offshore company in Dubai is to avail the tax benefits. UAE has a zero-tax regime and has a flourishing economy and an open market policy. An offshore company enjoys 100% income tax exemption; 100% corporate tax exemption; 100% capital and profit repatriation. UAE also has Double Taxation Avoidance treaties with several countries..
Privacy: The Offshore Company offers total privacy and information is not available in any public domain. The details of directors’ and shareholders’ are not available to the public, or for that matter to anyone. The only reason to divulge information pertaining to an offshore company is when there is a criminal offence.
Ease of Registration: You can even get your offshore company incorporated within 1 working day.
Avenue for high net worth individuals: Wealthy individuals from politically and financially unstable nations choose to open an offshore company to protect their assets.
Though it’s just a matter of a day, to get your offshore company registered and running, starting a business in Dubai can be tedious tasks for people who are new to the laws of the land. The Dubai government has stringent laws and regulations to qualify as a business establishment in this megacity. If you intend to start an offshore company, you can only do so through an officially appointed Registered Agent like Worldwide Formations.