An offshore company is a legal business entity formed with the intent of conducting business outside of its registered jurisdiction and/or the location of its ultimate ownership.
Offshore companies are permitted to open multi-currency accounts in the UAE and conduct foreign business. They may not, either, conduct business with UAE residents or have physical premises in the UAE.
Because of the fewer restrictions placed on businesses, offshore business is becoming more prevalent in Dubai. Company owners from all over the world are heavily investing in establishing an offshore business in the emirates to take advantage of tax breaks and other benefits. If you want to start an offshore company, consider the following factors that make Dubai the best place to do so.
- Dubai’s tax system is well-defined and simple. Income tax and Zakat are two kinds of taxes.
- Non-residents are subject to income tax, while local locals are subject to Zakat.
- Starting your offshore company in the UAE allows you to save taxes and spend more capital on business growth.
- So having an offshore business in the UAE allows you to keep more money while paying surprisingly little tax.
- Once your company is registered, we can provide tax-related assistance and consultations.
- The jurisdictions of famous offshore company destinations, such as Dubai, provide adequate support to ensure the privacy of its business owners.
- Your identity will be kept concealed and the administration will provide you with adequate security and privacy.
- Because no country is obligated to uphold the rules and regulations established by a foreign administration, the jurisdictions of offshore companies are usually immune to those regulations.
- Dubai is thought to have a simpler company registration process.
- The whole procedure is designed in such a manner that any company will be registered in a shorter period of time.
- Choosing a type of corporate entity is part of the process. Once you’ve decided on a legal structure, you can register your business name with the appropriate authorities.
- The next step will be to fill out a company registration application and send it to local authorities for verification.
- After the documents have been approved, you can open an offshore bank account to deposit the company’s capital requirements. You should always use professional consulting services to make the configuration process much simpler.
Requirements for Minimal Documentation
- There is a common misconception that having an offshore company necessitates a lot of paperwork, which is not necessarily correct.
- Documentation is an important part of the company configuration process.
- The documentation process in Dubai is much easier and more manageable now that the majority of the registration process is paperless.
- The documentation needed for an offshore company is limited, often consisting of notarized documents such as a passport, visa, registration papers, bank statements, and owner information.
Lower Operating and Maintenance cost
- Creating an offshore company is much less expensive than doing so in other countries. You will not have to pay less for maintenance.
- Normally, there would be little or no requirement for paid-up capital. This provides you with another reason to pay less and get more.
- Physical office is not required in for Offshore company
- As a result, one of the primary advantages of establishing an offshore company in Dubai is that it significantly reduces compliance administration costs.
These and many more benefits are there for establishing an offshore company in Dubai.
This blog is written by Ms. Manali Chandegala, Partner Relation Executive at Flyingcolour Business Setup, VAT and Accounting Services, Dubai. If you are looking to set up an offshore company in Dubai or anywhere across the UAE then please contact us at +971 4 4542366 or email us at info[at]flyingcolour[dot]com.
*Please Note: This article was published on 22nd March 2021. The information provided in the article is based on the policies and rules applicable at the time of writing it. Talk to one of our consultants for any recent update or change.