Benefits Offshore Company in the United Arab Emirates
Offshore company formation in the UAE is an option that is attractive for all by all means. Establishing an offshore company in the United Arab Emirates comes with many advantages. The advantages of establishing such a company are always more than you expect. It comes with the option of a tax free regime and without any obligation of showing financial gains. Moreover it waves off to show information regarding the company. The process of forming any such company is easy, straightforward and quick. Moreover, you do not need to give more documents for registering such a company in uae. The offshore companies generally operate in the free zones. Such companies are actually formed to transfer funds to other countries and buy the property.
Benefits of Offshore Company
Setting up an offshore company in Dubai can benefit entrepreneurs in a lot of ways. The country actually charges the 0% income tax rate from the offshore companies in all the free zones. Entrepreneurs can get the exemptions from customs tax, VAT, and withholding tax and this makes a suitable environment for business. The offshore companies can provide the confidentiality of investments per the laws of the country. Moreover, the limited liability of the investors is secure and confidential. These business entities have the option of fully foreign ownership and this means that the companies are 100% foreign owned. One more benefit is that these entities can open multiple bank accounts. It makes international transactions easier for businesses.
Key Industries for OffShore Businesses
There is not a specific industry which is getting benefit of this approach. You can also make it happen after investing in any industry. Making an IT company in Dubai, Consultancy Business in UAE and other businesses can make a difference. The country gives special benefits to the tech companies. Moreover these companies are actually getting special benefits from the government for their expansion as well. These companies can benefit from the vibrant offshore ecosystem.
The Jurisdiction of Offshore Companies
The UAE government or any of the emirates are usually not responsible for the registration of offshore companies. These companies actually get the license or the formation certificate of their legality from the free zones. The primary jurisdictions that are responsible for these offshore companies are as follows:
- I) Ras Al Khaimah International Corporation Center (RAK ICC), II) Jabal-e-Ali free zone (JAFZA), and III) Ajman free zone.
RAK ICC is a jurisdiction that is one hour away from Dubai. It is one of the fastest growing jurisdictions of the country because it does not require any annual report. Next is JAFZA which is one of the major business hubs of the country. Its location is in the heart of Dubai. Legally JAFZA requires one shareholder, one secretary and two directors as well. The Ajman free zone is one of the largest and the oldest free zones of the UAE. The benefit of this free zone is the cost-effectiveness.
Regulatory Bodies and Compliance
The legal framework of the country provides special jurisdiction to every free zone to deal with the company formation. The free zones have their own set of rules for the regulations and compliance.
UAE OffShore Company Law
The offshore company law provides a legal framework for forming, registering and operating offshore companies in the uae. For each offshore company there must be one shareholder, one director and a company secretary if you are in JAFZA. There Is a requirement for such companies to maintain their records for 10 years. In the UAE the royal court actually makes the laws and these are the decree of the law. The RAK ICC primarily operates under the decree number 12 of 2015 and decree number 4 of 2016.
Privacy and Assets Protection of the Offshore Companies
The privacy of ownership and the assets is a guarantee in the uae. The country laws protect the assets, shareholders and the directors of the company. It does not allow any foreign government to investigate in the country. If there is evidence available that these companies are responsible for any terrorism. Then the UAE authorities can investigate only or the government can give access to the foreign countries as well.The offshore companies enjoy the protection of the government for any lawsuits Otherwise. There are flexible commercial laws available as well. The offshore companies can perform without any office which means that requirement of the physical office is waived off as well.
