UAE is famous for providing one of the world’s best business opportunities to foreign investors. Foreign entrepreneurs can set up a business in UAE in several ways. One among them is the offshore business opportunity which is the most secure one in the whole world. There are few countries in the world that provide opportunity for setting up an offshore company and these places are commonly known as tax havens (due to application of no or very small tax).
UAE is one among these places. Foreign investors are allowed to form offshore companies in different states of UAE like Ajman, Ras Al Khamiah and Dubai. These offshore jurisdictions provide best location, incentives and other advantages to set up an offshore company in their areas for foreigners.
Following are few of the advantages that make UAE one of the best places for establishment of offshore companies.
No Office Requirement:
In case of business in mainland and free zone areas, there is office requirement for new company in UAE. But there is no such condition in any of the offshore areas in UAE. The company in these offshore areas can be started without establishment of an office and it will not be required in later stages also. The address of registered agent can be used as office address of a UAE offshore company. It clearly shows that the company can remain secret if the owner wants to.
One of the most important business friendly measures of UAE is the complete tax and duty exemption for off shore companies. These companies are exempted from taxes in UAE if they perform business activity and generate funds from outside United Arab Emirates. UAE has signed DTAA (Double Taxation Avoidance Agreement) with more than 40 countries. This agreement provides tax exemption of foreign investor in two countries – country of residence and source country.
Several offshore jurisdictions are currently on the radar of international financial organizations. But UAE is especially favorable for investors as it is enjoying good reputation around the world. It is evident from removal of UAE from EU tax haven blacklist. It means foreign investors will not only get tax benefits, security of assets and several other benefits, but they will also be able to do business inside other top economies with ease.
Similar to free zones, the company owners in the offshore areas also don’t require local sponsorships. These local sponsors are required to establish a company in the mainland UAE by foreign entrepreneur and these local sponsors are also paid only for representing these foreign companies. But there is no such problem in case of establishing an offshore company. The company owner holds 100% shares of his/her company which provides freedom and stress free environment to the investor.
Simple Setup Procedure:
The whole procedure to setup a company in UAE is quite simple. The investor just has to submit required documents after which the registration process will be completed in only 3 to 4 working days. For this registration process, there is no requirement of employment of staff, hiring of buildings and provision of audit and guarantees. These offshore companies are allowed to do business through legal firms and approved accountants.
The whole registration procedure can be completed through a registered agent and the foreign investor doesn’t need to meet the UAE authorities for this purpose. All the documents are provided in English that are easily understandable for foreign investors. Physical presence of company owner is also not required during offshore company formation process.
It is perhaps the most unique aspect of offshore companies and it proves true in the case of an offshore company located in UAE also. For this purpose, offshore companies are exempted from the requirement of disclosing the names of their directors and shareholders.
The assets of offshore company are also fully protected while protection is also provided to the resources and other possessions in case of lawsuit against the company.
Corporate Bank Account:
Offshore company holders in UAE are allowed to open corporate bank account. Through this bank account, the company holder is allowed to deal in multiple currencies for his business. It is very important in the sense that they are allowed to repatriate 100% of profit to their desired countries.
In most of other countries, there is usually a single offshore jurisdiction available for foreign investors. But there is a unique advantage in UAE due to presence of three distinct offshore areas. You can establish an offshore company in UAE in Dubai (JAFZA), Ras al Khamiah and Ajman.
All these states provide different advantages and benefits to open an offshore company in their respective state. This creates a positive competition between these states and they try to make it more and more profitable and attractive for foreign investors to open offshore companies. Foreign investors are free to choose their desirable location among these different states according to their requirements. For offshore company formation in any of the three offshore jurisdictions in UAE (JAFZA, Ajman or Ras Al Khaimah), you can contact RIZ & MONA Consultancy via our WhatsApp # 971-56-9971225.