Whenever someone brings up the words “offshore company”, the minds of most of us race to the numerous Hollywood movies which has a notorious depiction of what an offshore company is and how the owner of one would be. However, the truth could not be farther from fiction. An offshore company is a legal entity which provides one of the best legal mechanisms to structure businesses and carry out international business transactions. Here are the 6 key benefits of setting up an offshore company in the UAE.
The most important and widely used benefit of an offshore company is to protect your hard-earned assets. The incorporation of an offshore company with the right corporate structure builds up a strong legal wall which secures your assets from unwanted lawsuits which one can normally encounter in traditional mainland jurisdictions with the increased visibility of the assets. If you are a high net worth individual, the chances of facing an unnecessary legal obstacle from any one of your adversaries can exponentially rise. With an offshore company, you would be able to make sure that the assets that you include in your offshore company are sufficiently protected from any such adversaries. The UAE provides one of the best offshore jurisdictions in the world to incorporate an offshore company for asset protection.
Offshore companies in the UAE are not required to publish private details of the shareholders and directors in the public domain including their financial information. In some of the offshore jurisdictions in the UAE, there are no annual auditing requirements. There are no requirements to file the financial accounts as well. The relevant offshore registry does not divulge this information to any third-party law enforcement agency unless required by the common reporting standards or there are credible suspicions of criminal or terrorist activities as per the existing Anti-money laundering and combating the financing of terrorism laws in the UAE. This ensures that the privacy of an offshore company is well maintained.
Zero corporate tax liabilities and no restriction on capital repatriation sounds like a dream for most entrepreneurs who are looking to incorporate an international business company. The UAE has double taxation treaties with a considerable number of countries as well. The companies incorporated in an offshore jurisdiction in the UAE do not need to pay any corporate taxes for their company and the shareholders keep 100% of the dividends from such an offshore company in the UAE.
Access to banking
Access to prominent banks in the UAE makes sure that you have access to the best banking infrastructure to support your business venture. To add on to this, you will have access to other premier international banks around the world. This makes sure that you get to reap the benefits of the best banking infrastructure of UAE and elsewhere. Depending upon the client profile, a bank account from a UAE bank can be opened within six (6) to eight (8) weeks.
Hassle-free and efficient administration
Depending on the offshore registry you choose, an offshore company in the UAE can be incorporated within a few working days. It needs to be noted that an offshore company does not require a physical office space. An office address of a registered agent is all that is required by anyone who is looking to incorporate an offshore company in the UAE. Furthermore, there are other lucrative factors which ensure that the administration of an offshore company in the is streamlined and efficient. These factors include no minimum share capital requirement and no requirement for attestation of corporate documents to be used in the UAE. Lastly, you will not be limited in terms of conducting the board meetings geographically as the board meetings of an offshore company in the UAE can be held anywhere in the world.
Low cost for set-up and maintenance
The low cost of initial set-up and further yearly maintenance is another key benefit of offshore companies in the UAE. The cost structure that the UAE offers to set up a company in its offshore jurisdictions is one of the lowest compared to other offshore jurisdictions in the world. This attracts a host of investors to this space and boosts the landscape of the entire business economy.
The UAE offers three (3) offshore jurisdictions, namely RAK ICC, JAFZA Offshore, and Ajman Offshore, to incorporate companies such as holding companies, joint venture companies, intellectual property holding companies, international business companies and SPVs.
InZone is a registered company formation agent with strategic tie-ups with leading banks in the UAE and elsewhere. We offer cost-effective and comprehensive packages to set up your offshore company in the UAE without any compromise in quality. Contact us now to start your offshore business venture in the UAE.