Your Essential Guide to Offshore Companies in Dubai
Contributed by Europe Emirates Group
21 November, 2018
With Dubai's strategic geographical location between Europe, Asia, and Africa, the Emirates are a prime location for starting an offshore company. As an economically, social and politically stable nation, Dubai and the rest of the United Arab Emirates (UAE) are prime locations for conducting business in the region.
One of the most efficient and favourite vehicles remains the Offshore Company. Also known as Offshore Corporations, Offshore Setups, or International Business Companies, these types of businesses are tax-exempt and allowed to conduct their affairs from anywhere globally except for the country of incorporation. Shareholders can control on discretion, as well as perform asset fortification, among other such benefits.
An Offshore Company stationed in Dubai can be created by at least one shareholder and have a maximum of fifty. Likewise, the company needs to be managed by two directors and one secretary, and have their names registered with the Dubai Registered Office. This information will, however, not be available to the general public. General meetings of an offshore company are not required to take place in Dubai.
What Are the Advantages of an Offshore Company Stationed in Dubai?
There are several advantages to be had when starting an offshore company in Dubai. For example, there are no corporate, personal, or capital taxes that apply. Additionally, there is no VAT, except for oil producers and foreign banking branches. Furthermore, there is no filing of account or auditing required and there are no taxation information exchange agreements with other countries. The most salient of these benefits can be found below:
- Providing a gateway for international market expansion;
- Access to a stable and business-friendly legal system;
- Access to a more flexible regulatory regime;
- Offering tax neutrality on international earnings in respect of (depending on jurisdiction) personal or company income, capital gains and inheritance taxes;
- Offering better access to global funding;
- Providing a vehicle to separate or protect assets, such as Intellectual Property, from operating entities.
Offshore companies also benefit from complete ownership, and there is no minimum share capital if the company locates within a free zone. Moreover, companies are not required to deposit share capital in a local bank, nor are they obligated to submit the company's account. High net worth international investors also benefit from Dubai's flexible and confidential banking system since their anonymity and privacy are protected by strong local legislation. Investors are also not required to visit Dubai or the United Arab Emirates to incorporate their company.
The First Steps
Now, regardless of the many benefits, setting up an offshore company in Dubai has its procedural requirement: It is imperative that you are fully aware of all the rules and regulations that apply for the entire process.
It is expected that you comprehend the entire legal procedure, document clearing, etc. Those who are interested in starting an offshore company need to communicate and coordinate with the appropriate banks, clients, and suppliers since any wrong step can result in added taxes, various penalties, or all sorts of legal obligations that can, otherwise, be avoided. However, our experienced team at Europe Emirates Group ensure that this a smooth and painless process for all our clients. For more information regarding incorporation of Limited Liability Companies in Dubai, contact us for a free consultation on +971 4 311 6547 or by email at firstname.lastname@example.org
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