OFFSHORE COMPANY SETUP IN DUBAI
Overview The term "off shore" refers to a situation in which company investors seek to invest in an off shore jurisdiction in order to benefi t from tax exemptions. The tax advantages have become increasingly popular among corporate investors over time. As a result, most countries have taken the necessary steps to become popular offshore jurisdictions.
WHAT IS AN OFFSHORE COMPANY IN THE UNITED ARAB EMIRATES? Off shore Companies in UAE should not be confused with UAE Free Zone companies. An Off shore Company is a legal business entity that
is
set
registered
up
with
jurisdiction
the
intention
and/or
the
of
operating
location
of
outside its
its
ultimate
ownership. Off shore companies are businesses that are registered in Dubai but are permitted to establish their headquarters in off shore locations located outside of the city of Dubai. Limited liability companies, limited companies, and limited partnerships are all options for Dubai off shore company formation.
Advantages of Creating an Offshore Company in the United Arab Emirates • Most off shore companies in the UAE are exempt from paying any taxes including personal income tax or corporate tax. • Offshore companies also enjoy a 100% exemption from import and export taxes. • Value-added taxes (VAT) or taxes on capital gains or withholding tax are not applicable to offshore companies
Benefits of an Offshore Company in UAE • Zero taxes For
most
entrepreneurs
looking
to
incorporate
an
international
business, zero corporate tax liabilities and no restrictions on capital repatriation sound like a pipe dream. • Privacy Off shore companies in the UAE are not required to publish private information about their shareholders and directors, including fi nancial information, in the public domain. • Low cost for set-up and maintenance Another signifi cant advantage of off shore companies in the UAE is the low cost of initial setup and ongoing yearly maintenance. This attracts a slew of investors to the space, boosting the overall business economy.
"Ground Level Challenges for UAE Government" • A
company
off shore
may
for
avoidance
or
legitimately
the
purpose
to
enjoy
move
of
tax
relaxed
regulations. • Off shore fi nancial institutions can also be used for illicit purposes such as money laundering and tax evasion. • Increased pressure is leading to more reporting
of
foreign
accounts
international tax authorities.
to
Conclusion We
can
conclude
that
opening
an
off shore
company
will
lead
to
good
investment in UAE market which economically may give a contribution to the economy as a whole. At the same time there is also a need of eff ective vigilance over the incorporations of such business setup so that it will be helpful to overcome the challenges that government is facing. Surely, there are advantages to the incorporation who are looking up-to setup their off shore identities in UAE.
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