Offshore company is a Company which is incorporated in a tax free Country. They are exempt from paying taxes in their home country provided the business is carried on outside the country of incorporation. Offshore companies are typically used for holding investments, properties and protecting assets from local inheritance laws
In UAE, offshore companies can be set up in Dubai, Ras Al Khaimah and Ajman.
Requirements of Starting Offshore Company UAE
Here is a list of some of the benefits of offshore company registration in UAE:
- There is no minimum requirement for authorized share capital of the offshore company UAE;
- Shareholders of an offshore company in UAE can be physical and legal entities;
- Registered office and address of the offshore company in UAE;
- Quick offshore company registration within a few days;
- There are no exchange controls.
Benefits of Offshore Company
Offshore companies have been used by people all over the world to hold their property/ investments in a safe and secure jurisdiction tax free. In most jurisdictions, confidentiality is guaranteed and the details of beneficial owners remain with the registered agent of the Company. This is also a very good vehicle for people who do not wish to conduct business locally. Receiving commission payments or for consultancy services rendered offshore is possible. Offshore Companies can have a local bank account provided all due diligence is submitted.
Many individuals or firms that provide professional services such as business consultancy, software engineering, computers, design, and finance consultancy can achieve significant tax saving profits using a Personal service company. Such firms usually supply services to the ultimate consumer, either directly or via specialized agencies. The professional services, generally engineering or IT, are performed by the contractors, who are also the directors and owners of the business. The personal service company can provide the services for individuals living in another countries and the earned income can accumulate an offshore, exempt from taxation.
Features offshore Company Services
- Providing professional services via a personal service company will prove to be a good marketing and organizational tool for persons seeking clients to provide consultancy services.
- The PSC is established as a limited liability company. Consequently, it provides reliable protection for individuals offering international consultancy or other services who will commonly adopt an indemnity cover in order to minimize risks associated with business.
- The PSC is one of the most recommended jurisdictions, which will relieve the taxpayer’s liability because the rate of tax will be noticeably lower than in his native country, if not nil.
- A personal service company allows reducing the accounting, administrative and legal costs which can significantly increase upon setting up such a firm onshore.
- The PSC are used principally by expatriates, individuals providing international consultancy services and professionals seeking for asset protection.
Property Owning Offshore Companies
For customers wishing to buy real estate for investment goals or looking for secondary property for retirement or leisure purposes, there are significant benefits to be received through the establishment of a foundation, trust or corporate structure to address inheritance or capital gains tax matters, as well as forced heir-ship rules. Different countries have different principles and rules regarding succession of property and the IHT tax can be quite substantial.
As a Company never dies, holding a property using a company can address many issues. Transfer of ownership also becomes easy as a simple transfer of shares of the Company is sufficient to transfer the assets held by the Company to the new owner.
One of the latest initiatives by the Dubai government has been the setting up of offshore companies which will be regulated by the Jebel Ali Free Zone (JAFZ) offshore Companies Regulations 2003 which came into effect on January 15, 2003. This Company can be used to own real estate developed by any of the leading property development companies like EMAAR, Nakheel, Dubai Properties or any other real estate properties approved by the JAFZ – Authority
Property in UAE can be held only by using a Jebel Ali offshore company and only after receiving a NOC from the Jebel Ali Authorities. Physical presence is required for forming a company in Jebel Ali but for most other jurisdictions, company formation can be done via email and courierBenefits and advantages:
- Concealing ownership and privacy
- Tax mitigation.
- Asset preservation
There is no definite answer to the question whether property or real estate should be owned by the company or personally. Every case must be considered individually, in view of specific circumstances. If you are planning the selling, buying or renting property in UAE, it’s necessary to think about possible consequences in advance, using preliminary calculations, and projected figures to obtain assistance of professionals.
Those, who have already purchased real estate in Dubai and many potential clients, are unaware of the possible consequences of owning properties registered in their personal names as opposed to having it in the name of the Company. For all your company formation in Dubai or any other emirates in UAE, please contact our team of Zenesis Corporation for a free consultation.
How to choose right offshore jurisdictions.
The choice of jurisdiction depends on the proposed activity of the company, the nationality of the director/ shareholders of the company, the area of proposed business, the tax implications, the political climate, the need for maintaining records and host of other factors. It is advisable to check these implications with a business consultancy and tax advisor in choosing the right jurisdiction
Offshore company formation services in UAE has many benefits.
- Hold property to avoid local inheritance laws
- The possibility to open special offshore bank accounts in UAE;
- No fees for export or import of goods;
- The ability to invest your money in property, without being a resident of UAE.
- No taxes
- Can freely conduct business outside UAE
These are just a few moments among a wide range of advantages, offered to businessman by the government of the emirate.
UAE OFFSHORE BANKING
Offshore banking can be described as a kind of activity that can be carried from any part of the world, no matter where you live. People and International companies open offshore bank accounts for different reasons:
- To protect their assets;
- Minimize taxes;
- Easy business management;
- More flexible foreign legislation;
- High degree of confidentiality and anonymity.
These are just few examples of advantages of foreign offshores. If you want to know more – call our specialists and receive a free consultation from the specialists of Zenesis Corporation.
Why do People Open Offshore Bank Accounts
According to statistics, the majority of people registering an offshore company have no intention to engage in any trading activities; offshore company for them is an easy and reliable way to protect their personal assets from third parties.
An offshore company has all the legal and economic qualities of conventional legal entities registered in any onshore (not offshore) jurisdiction and may, like any person, own any assets – cash, real estate, personal property and others.
It is an undisputed fact that the assets owned by an offshore company have greater extent protected from judicial claims and/or lawsuits, or claims and proceedings various governmental (regulatory) bodies than the assets owned by such individual, in the jurisdiction of your location.
Among other things, investments made through an offshore company, usually allow you to avoid paying tax on investment income.