Dubai Offshore Companies | Discover Winning Benefits For You
Dubai offshore companies: Tax free business jurisdiction, advantages, and types of company structures
Have you considered establishing an offshore company in Dubai in 2015? Read on…
Dubai offshore companies: The reputation of Dubai (United Arab Emirates) as one of the best jurisdictions in the world for incorporating an offshore company stems from it being a “tax-free” business territory.
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How does Dubai differ from countries like Seychelles, Singapore, Cyprus, Belize, Hong Kong or even the Isle of Man (UK)?
- Many international business corporations feel secure locating and establishing a Dubai offshore company mainly because of the Emirate’s strict policy on privacy and confidentiality.
- For one, Dubai is not a signatory to any agreement concerning exchanges of information pertaining to businesses set up within its jurisdiction.
- This means that the registered company is protected by local laws from divulging any financial information to authorities.
- The number of individuals and corporations with plans on setting up a Dubai offshore company keeps on growing because of the many benefits.
- A Dubai offshore company (including all other companies doing business from the Emirates, with the exception of oil companies and banks) is exempt from paying corporate taxes.
- Therefore, there is no filing of tax remittances, being audited or any of the other inconveniences associated with paying corporate taxes.
- In addition, the company may import various goods tax-free; goods subject to import duty are assessed at a standard four percent (4%).
As mentioned earlier, Dubai has no agreement with any country regarding mandatory swapping of information.
The Emirates finds no compelling reason to enter into such an agreement, especially since there is no taxable gain that can be obtained from it.
- This offers complete confidentiality with regards to any type of general business like company operations, share trading, capital, partners, running costs etc.
Thus, individuals or corporations don’t have any problem maintaining high levels of privacy for their businesses; the same high level of confidentiality can likewise be assured in case they decide to open bank accounts in the Emirates, too.
Sometimes referred to as a “non-resident company”, an offshore company is not allowed to engage in substantial business activities within the jurisdiction of its incorporation.
Dubai offshore companies: Features and benefits
- Still, the flexibility of an offshore company as a business entity allows it to be integrated with a wide variety of business solutions.
- Private ownership of assets is possible through the company’s structure. Such assets may include real estate in the Emirates.
- Having physical offices in the Emirates is not mandatory.
- You may have a non-UAE resident and/or a UAE resident as shareholder or director; the physical presence of the said shareholder or director is not required during the company’s incorporation.
- The Dubai offshore company can act as an intermediary or holding company for a multi-national business.
- Payment of certain types of taxes on income and/or profits can be avoided legally.
- The Dubai offshore company is not obliged to maintain its records/books. There will not be an annual audit or reporting to any government department.
Dubai offshore companies: Advantages and benefits
- Those wishing to establish a Dubai offshore company will most likely appreciate the fact that in the Emirates, no public record of the shareholders or directors of a company can be obtained.
- All activities of key personnel (both personal and business-related), therefore, remain confidential in Dubai.
- The same protection of privacy is guaranteed for those planning to incorporate and establish an offshore bank account in Dubai.
- The Emirate’s excellent legislation and superb banking system make account holders and investors feel fully safeguarded in this regard.
Dubai offshore companies: Types of company structures
- Investments or Joint Investments Company
- General Trading
- Holding Company
- Shipping or Ship Management Company
- Copyright or Patent Company
Dubai offshore companies: Flexibility
- For professional services (i.e., individuals receiving professional fees for rendering services such as consultancy, entertainment or designing), for instance, a Dubai offshore company may be contracted to receive such professional fees on behalf of said individuals.
- In a probate and privacy setup, as another example, the advantage of a Dubai offshore company for an individual (especially one with a high net worth) is that your property and assets remain private in the Emirates through said offshore company serving as a holding company.
- The advantage of such an arrangement for a foreign business owner is that you need not travel to the city of Dubai to establish the company yourself. The business owner need not be in residence in Dubai, at all.
- You can appoint a legal nominee to apply for the requisite licenses. Of course, said services of an intermediary entail certain fees. You are not limited in any way just because you aren’t resident in Dubai.
Again, setting up a Dubai offshore company may require the services of an intermediary (a UAE national) who will be able to perform all the important steps and follow correct procedures for a successful incorporation.
There is an experienced team in place to handle all applicants and certifications- providing all support to you from start to finish!
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