What is an Offshore Company? In financial language, the term “offshore” is used to define any business or investment made outside the country of residence or in other words an offshore company is a legal entity established in an Offshore Financial Offshore Company, most commonly termed as International Business Company or a Non- Resident Company, is a legal structure which provides for a low/No-tax environment for an entity or an individual which in turn minimizes tax burdens and improves wealth management. Centre (Offshore Jurisdiction). Offshore company formation in Dubai must be incorporated under Offshore Company Laws and regulations of offshore jurisdictions. Offshore company Must not trade within the offshore jurisdictions There are innumerable advantages in setting up a Dubai offshore company as the business climate is very favorable to entrepreneurs and also conducive to growth. Still Offshore Company Formation in Dubai needs a lot of factors to be considered before you jump into the fray. Setting up business in the UAE (comprising of seven emirates: Dubai, Abu Dhabi, Sharjah, Ras Al Khaimah (RAK), Umm Al Quiwain, Fujairah & Ajman) and anywhere in the world, significantly depends on the rules & regulations, the business environment and the culture prevailing in the respective region. It is important that all related issues are identified, understood and dealt with effectively during the course of setting up the business. There are various ways of doing business in a new country; one of the ways is to set up a legal entity in the country you wish to operate in. This requires research on the new business environment and subsequent planning to set up the business, based on the research. Like a chess game, the success depends on decisive and correct opening moves. We plays a vital role in assisting with offshore company formation in Dubai. Why setup an offshore company? There are number of reason why so many private individuals and businesses incorporate an offshore company however followings are the main reason to setup an offshore company. Anonymity, confidentiality and the highest level of privacy protection Asset Protection No accountant costs Business can be conducted internationally (Invoice international clients) Corporate Bank Account Prestigious Registered that you can use our address for your offshore company Offshore company can act as an intermediary in any transactions of your Company with foreign Companies Listed below is information summarizing the reasons for why offshore companies are formed? Privacy & Confidentiality and Asset Protection Tax optimization (depending on your jurisdiction) Flexible Business Laws & Lawsuit Protection
Business Expansion International Financial Diversification Benefits of Dubai Offshore company formation 100% tax free 100% tax/customs duty free 100% ownership, no local national involvement required 100% repatriation of profits and investments Extreme confidentiality Suitable for any kind of international business No office space requirements Liberal bank account opening and maintaining Multi-currency bank accounts Quick incorporation – 2-3 working day Uses of an Offshore Company As most other companies an offshore company may enter into contracts, open bank accounts, purchase and sell various products and services, own property. A typical offshore entity, also known as an International business company (or an offshore IBC) does not pay taxes in its home jurisdiction. Following can be the uses of an offshore entity: oProfessional Services You can also carry on your consultancy or counseling business by using an offshore company. You will find it easier to manage your company and will have reduced or even zero taxation depending on the jurisdiction in question. oInternational Trading A trading company can be establishing itself in an offshore area. The offshore company would take orders directly from the customer, but have the goods delivered directly to that customer from the manufacturer or place of purchase. The profits arising out of the difference between purchase price and sales price would then be accumulated in Offshore Company’s bank account. oProperty Owning Companies There are a number of good reasons why the use of offshore companies has become so popular when buying property in Dubai. The most obvious reason would be the avoidance of complicated inheritance A company does not die. If your property is held in a low-cost offshore company, you (and your partner or partners) can own the shares of it as you see fit. So rather than have your individual names on the title of the property, you have a company name. In case of any uncertainty/unforeseen, all of your property and bank account will be frozen until a sharia court procedures.
order As a UAE property investor, we do recommend to buy the property OR investing in any Company under the name of an off-shore company. so if in case your family will not be suffering. When the owner sells the property; a certain percentage of its value may charge by the authority. The transfer fee can be easily avoided by selling the Company itself. is issued by the local courts. oInvestment Companies People who want to invest their money in different projects and they don’t want to disclose to someone, can incorporate an offshore entity and then this offshore can invest as a corporate investor in different project. An offshore company can hold the shares of other companies in UAE or abroad. oCopyrights, Trademarks and Patents Any kind of intellectual property right (a copyright or trade mark) may be registered in the name of an offshore company. The company may also buy or sell this type of rights. oHolding Companies Offshore companies can be used as a holding company where people can manage their all business under one holding structure. Choosing the right Offshore jurisdiction The structure of an offshore jurisdiction is important for many reasons. First, it is good for you when you are able to connect with the country easily, certainly through modern and reliable telecommunication lines. The country must have a up-to-date and reliable banking and financial system. The factor which is very important but commonly overlooked – work ethics and traditions. Some regions are more relaxed in their attitude to work; this may become a critical issue when you need something to be done quickly and accurately. Some countries have historically developed a work culture of diligence, prudence and secrecy, others are less so. Time zone should also be taken into account: dealing with the jurisdiction on the other side of the globe may frequently make you lose a day while communicating via e-mail or fax, and is certainly more convenient to make calls during your usual business hours. There is a very significant difference between the ‘safe haven’ of The Emirates and other worldwide ‘tax shelters’ The Emirates and other GCC countries of The Middle East are ‘Zero tax’ jurisdictions by nature and not by design. Why incorporate an offshore company in UAE
Since the inception of UAE offshore company formation in early 2003, the UAE has quickly emerged as the business hub of choice in the Middle East region and is proving itself to be well placed to being one of the most dynamic and fastest growing business and International Financial Centers Worldwide. Given the UAE’s continued stance on ZERO tax’s and duty exemptions, there is little wonder why more and more individuals and International Companies are now choosing the Emirates as, not only their business headquarters, but also in many cases their primary choice of residence too. In 2003, Jebel Ali Free Zone Authority (JAFZA) Dubai’s foreign ownership Free Trade Zone, became the first location in the UAE to provide offshore company formations. In February 2007, Ras Al Khaimah Investment Authority (RAKIA) and Ras Al Khaimah Free Trade Zone (RAKFTZ) located in the most Northerly region of the Emirates expanded their already thriving Free Zone to include offshore business formations, often known as International Business Companies (IBC’s.) Due to the excellent operational service methods adapted by RAK Offshores, the offshore incorporation division of RAKIA and RAKFTZ, coupled with the clear documentation process and lower incorporation fees, RAK Offshores have stepped into the driving seat of offshore formations within the UAE. RAK Offshore Company Formation A new type of Offshore Company in RAK with the abbreviations RAK ICC (Ras Al Khamiah International Corporate Centre) is planned for the first half of 2016. It’s an International Business Company (IBC) proposed for the international business. Basically, RAK International Corporate Centre (RAK ICC) is afresh merged entity of the earlier two types of companies –RAK Offshore and RAK IC. RAK Offshore companies were registered by RAKIA and RAK IC companies were registered by RAK Free Trade Zone Authority. These two companies were relatively similar but had some differences on the applicable regulations. Merger between RAK IC and RAK Offshore was announced in May 2016 and new changes are being applied to newly formed registry. The regulations and laws of RAK ICC are being made more exhaustive and wide-ranging to streamline various procedures The introduction of the RAK offshore Company does not involve any major changes in the current key advantages of an offshore company in UAE. RAK Offshore companies, same as before, remain totally Zero from taxes. Same as previously, there is no requirement to submit an audit report, whereby the UAE offshore jurisdictions are broadly known and recognized as highly respected for registration of offshore companies for international businesses. There will be no substantial changes for the existing companies incorporated under RAK Offshore, so those companies can still operate same as earlier. The only amendment will be made to the Memorandum of Articles of the existing companies stating the change of status to RAK Offshore company.
The UAE has been signed for double tax treaties with more than 47 – A RAK Offshore company can best take benefit of those treaties. However, all UAE Offshore companies or other companies must to follow United Arab Emirates law, RAK International Corporate Center (RAK ICC Offshore) can choose which law should to be applicable for arguments, inheritance and any other legal matter (the chosen law must be cited in the Memorandum and Articles of Association). A RAK offshore company can hold shares in “onshore” Dubai company (such as Dubai LLC company), or any other legal entity globally. A RAK International Corporate Center (RAK Offshore Company) can also own real estate property (such as free hold properties) in the UAE. A RAK offshore company can hold a bank account in the Dubai UAE, for the use of carrying the day to day operational transactions and other related persons carrying out business. A RAK offshore company does not allow to carry out business with UAE residents, or conduct any trade in RAK Free Trade Zone and the UAE, unless, until it has obtained the suitable license from the concern authorities. JAFZA Offshore Company Formation The Jebel Ali Free Zone was established in 1985 by the Government of Dubai, and now consists over 100 square kilometres built around the largest artificial port in the world. JAFZ contains offices, warehouses and storage facilities in side for all kinds of goods, and a container port with 70 berths. Companies incorporated at the JAFZ have customarily been required to have a physical presence in jebel Ali . Though, following the overview of the Regulations for Jebel Ali Free Zone Offshore Companies, which came the concept of offshore company formation was first introduced in Dubai in 2001 but it got a proper structure on January 15, 2003 when JAFZA Offshore Company registration 2003 came into existence. JAFZA Offshore Company incorporation 2003 implemented comprehensive rules and regulations for offshore company formation in Dubai. Dubai offshore company is well-defined as a non-resident company which is having a corporate legal structure in Jebel Ali Free zone Dubai UAE. JAFZA Offshore Company formation 2003 permits the incorporation of an offshore company by individual or by establishments. Benefits of JAFZA Offshore Company formation in Dubai : No need to acquire office premises. JAFZA offshore company registration provides high level of asset protection. Zero percent tax environment. Aallows 100% foreign ownership. Minimum operational cost in JAFZA offshore company. JAFZA offshore company formation has no limit on flow of capital. Easy and simple procedure of incorporation.
Opportunity to invest in properties worldwide. Transfer of shares and assets etc. There is no minimum capital requirement. Buying Freehold properties in Dubai which are approved by JAFZA (Properties from Developers like Dubai Properties Nakheel, Emmar etc.). Ajman Offshore Setup Ajman Free Zone was established in 1988 and was allocated an independent status under the Emiri Decree No. 3 of 1996 by Humaid Bin Rashid Al Nuami the Ruler of Ajman. In Recent years there is magnificent increase in the number of Ajman company formation in the free zone. Offshore company formation in Ajman has been started as late as 2014. Ajman Offshore Company is under the regulations of Ajman Free Zone Authority and since then it converted a popular choice for offshore company formation in Ajman. Just like any other offshore jurisdictions, Ajman Offshore company formation offers a Zero Tax Structure and Ajman offshore Company is providing confidentiality & privacy. The permitted address of the Ajman offshore company shall the address The cost of set up an offshore company in Ajman is the inexpensive in UAE and is less time taking process to setup Ajman offshore company. Ajman offshore companies are also non- resident companies just like other offshore companies and are not allowed to operate in UAE. Here, these companies will only get a company incorporation certificate. Ajman offshore company cannot carry business within United Arab Emirates. These shareholders are, however, permitted to invest in UAE companies. For Ajman offshore company registration, a director or shareholder needs to be physically present in Ajman Free Zone office, along with a registered agent, and personally sign the documents then and there. of the registered agent. Features of Ajman Offshore Companies: No office space is mandatory No residence visa 100% tax free and 100% profit repatriation Complete confidentiality and privacy Only international business is permitted and no UAE sales or trading transactions Easy incorporations and license renewals Approved by all leading bankers in UAE Types of licenses offered: Consulting Investment kind of licenses
General Trading Freelance kind of licenses Holding companies Professional licenses etc. Characteristics of Ajman Offshore Company Formation in the AFZA are as follows: Shareholders: For Ajman offshore company registration required Minimum of one shareholder. Corporate shareholders are acceptable in Ajman Offshore Company formation. Shareholders will have a choice to decide the capital structure of the Ajman offshore company. Single class of shares allowed but bearer shares are not allowable. Directors: A minimum of two directors are required to setup Ajman Offshore company and corporate directors are not acceptable. The same shareholder (s) can also be a director of the Ajman offshore company. Secretary: Ajman offshore company must have a secretary. And a director can be a secretary as well. Restrictions on Name & Activity: The name of the offshore company in Ajman must end with Limited. Local Requirements: Ajman Offshore Company must appoint an official registered agent. A registered agent’s office in the UAE will be used as the registered office of the Ajman offshore company . Timescale: Registration of the Ajman Offshore will take approx. 2 to 3 working days. Shareholders or their authorized attorneys should visit in person to sign documents in presence of AFZA executives for Ajman Offshore company formation. Taxation: Ajman Offshore company pays Zero/no taxes in UAE. Confidentiality: In Ajman Offshore company formation the details of shareholders & directors will be filed with Ajman authorities but will not be public.