Offshore companies are unique business entities contributing a large part to the world economy.
An Offshore Company is a legal business entity that is set up to operate outside its registered jurisdiction and/or the location of its ultimate ownership. Such kind of offshore company setup is not obliged to be physically present in the country in which they have been registered. In addition to this, these companies do not require a license from either the governmental department or free zone authority instead they receive a certificate of incorporation.
In terms of UAE, Offshore companies have provided an ideal opportunity to contribute to international trading, shipping, and international consulting services. The prospect of this can be achieved with the legal advice given by different offshore company formation services.
The two major jurisdictions offering Offshore Companies in the UAE include Ras Al Khaimah (RAK) and the Jebel Ali Free Zone (JAFZA). Both are designated “tax-free” jurisdictions that impose no income tax or corporate tax. The UAE also has “Double Tax Treaty” agreements with over 40 other countries. In JAFZA, Offshore Companies can legally own property situated in Dubai. Most importantly JAFZA Offshore Companies MUST appoint an approved registered agent which can assisted by offshore company registration in UAE.
These are the following advantages to set up an offshore company formation in UAE:
Ownership – Offshore Companies can easily be 100% foreign-owned. They also provide a way to separate or protect assets, such as Intellectual Property, from operating entities.
International market expansion- Offshore Companies offered a perfect getaway to expand the international market.
Tax Neutrality and Benefit – Offshore companies offer tax neutrality on international revenue concerning (depending on the jurisdiction) personal or company income, capital gains and inheritance taxes. In addition to this, they also have the benefit of full repatriation of profits and no import or export duty. By working remotely from anywhere in the world, companies can avail of tax benefits.
Confidentiality – The board within which the company is formed can not disclose the financial information of its offshore clients to their respective home countries. UAE has followed strict corporate laws and banking confidentiality.
Property Ownership – By setting up an offshore company one can utilize this opportunity to purchase property in certain areas in the UAE as specified by the offshore jurisdiction.
Holding companies– This type of company can act as a holding company in which shareholders can aggregate all their business establishments under one business.