In business language, the word “offshore” is used to describe any business, company or investment incorporated outside the country of residence. So offshore company formation in Dubai is a legal object incorporated in an Offshore Jurisdiction. Offshore company is not allowed to trade within its on jurisdictions and so called non-resident company. Another word offshore company is used to trade internationally. That’s why it is also called international business company (IBC)
Benefits of offshore Company formation in Dubai
There are number of objective why so many individuals and companies incorporate an offshore company however followings are the main purpose to setup an offshore company.
- 100% tax free (no personal tax no corporate tax)
- 100% customs duty free
- 100% ownership, no local sponsor required
- 100% repatriation of profits and investments
- Extreme privacy, Anonymity, confidentiality and the highest level of privacy protection
- Fit for any kind of international business
- No office space required (only virtual office)
- Liberal bank account opening and maintaining
- Multi-currency Corporate Bank Account
- Quick incorporation require only 2-3 working day
Advantages of UAE Offshore Company Registration
Following are some important advantages summarizing the reasons for why setup offshore companies:
Tax Optimization
The most common purpose for UAE offshore company formation is tax optimization. Tax optimization is the method of reducing the tax load through lawfully offered means. While tax optimization is considered as a lawful way of reducing the tax pay-out, it is actually different from tax avoidance. Avoidance of tax is an illegal activity by many countries across the world.
United Arab Emirates (UAE) allows 0% tax rates. UAE economy is a real economy with a clear market policy that boosts a fair competition. UAE has signed agreements with many countries across the world for (DTA) Double Tax Avoidance. This supports foreign companies to improve their tax obligation through UAE offshore company registration.
Asset Protection
Foreign companies, foreigner individual and wealthy persons from great risk regions use offshore company setup as a vehicle to shield their assets and family wealth. An offshore company formation in this case is used as a device to protect their assets from prospective unrest and restrictions in the country of their residence. A UAE offshore company formation would work great if the assets are earned in a foreign country or has been expatriated over a significant time through authorized and authentic channels. Assets made in foreign countries can be shielded straight under the protection of UAE offshore company or through an offshore bank account assigned to the UAE offshore company.
Asset Holding
Large corporate units and firms gather valuable assets as part of their business operations. In order to protect the high risk assets from possible legal clash disturbing the parent group, many holding firms are designed through UAE offshore company incorporation. Assets are parked under holding structure offer better security.
Succession Planning
Strict rules of inheritor-ship exist in many countries even in UAE. Such rules bound the freedom in allocating the assets or deciding on the custodians of their capital upon his/her death. As a result, individual and corporate entities choose offshore company somewhere in the world to take advantage of the liberal inheritor-ship provisions. By holding the high value assets under the UAE offshore company formation, and then having certificate for the shares in the offshore determined by the laws of the offshore jurisdiction. the testator can sometimes remove complexities in succession planning.
Ship and Aircraft Registration
Ship and Aircraft are always registered with offshore authority and financed by banks in onshore sector. This kind of structure is very common when the financer has concerns over the rules and regulations in the carrier’s home country. UAE offshore company formation helps to register ship and aircraft under the offshore company.
Investment Companies
Individual or corporates who want to invest their earning in different other businesses and projects, But they do not want to disclose to someone, can form an offshore company and then this offshore company can invest as a corporate investor in different other project. An offshore company can hold the shares of other businesses in United Arab Emirates or abroad.
Copyrights, Trademarks and Patents
An intellectual property right (a design or a patents or a copyright or trade mark) might be registered in the name of an offshore company. The Offshore company setup can also buy or sell this type of rights.
Trading in Derivatives
Trading in derivatives and other risky appliances in the regular stock markets is a worrying process due to the strict rules and regulations of the regulatory bodies. Wise people often setup offshore company and use as key vehicle to trade in such risky environment and transfer their incomes to the offshore bank account.
Security
An offshore company allowed legally to opens an offshore bank account which is considered as one of the most secured account in the world. Information of the bank account owner is not shared with any third party entities except there are very special or unusual situations.