Setting Up An Offshore Company In The UAE
09 February, 2017
To relocate your existing business overseas or set up an offshore company in the UAE, is a vital step toward internationalizing yourself and your assets. There are 100% legal and legitimate ways to structure your business interests overseas and realize significant benefits from an asset protection standpoint, as well as tax-standpoint.
So, whether it is for tax reasons, reduced set up costs or otherwise, here is some guidance for those who seek to move their business overseas or set up an offshore company in Dubai.
In general, part of moving your business overseas is about reducing or eliminating your tax burden. Having the right team in place to manage your business once it is set up is important to make sure you are in compliance and making the most of all tax benefits. The real tax advantage from running an UAE offshore company comes from tax deferment, meaning you postpone the payment of taxes into the future. If you run a business overseas and reinvest profits within the company, you can defer taxes indefinitely. Being able to reinvest your capital tax-free combined with the power of compound interest makes this a truly exceptional opportunity.
Offshore online business:
Online businesses in particular are an excellent fit for offshore business because they can operate anywhere in the world. With an offshore business, you can process payments in one country, host your website in another, keep accounting records in another, and pay minimal tax in another. If you incorporate your foreign business properly, it provides a legal way to defer tax payments, as well as enabling much reduced liability.
Offshore company formation:
While the process of offshore incorporation itself is straightforward, in some countries, laying the proper groundwork before and after the official process is important. This also means consulting with a qualified tax attorney who understands the rules and regulations in your home country. The best thing you can do is choose the right representative and once your company is approved and set up, the next step is to open a bank account and possibly an offshore merchant account for your business.
Dubai is at the center of a region that is emerging as a major force in the global economy. Businesses in Dubai do not pay direct taxes on corporate profits or personal income and businesses can avail of 100% repatriation of capital and profits, which is why many offshore companies are set up in Dubai. There is also a stable exchange rate between the US Dollar and the UAE Dirham and there are no foreign exchange controls, trade quotas or barriers. Dubai boasts an extensive foreign trade network, giving the investors an extensive choice of potential global marketing outlets for a diverse portfolio of goods and services. As a city within the UAE, Dubai is also part of the world's third-largest export and re-export center, after Hong Kong and Singapore.
Europe Emirate's Group are a consulting company in Dubai and have excellent local knowledge and familiarity with governance, local customs and laws, and are ideally placed to help our clients reap the awards of Dubai's business friendly culture.
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