If you are planning to set up a new business in Dubai, an offshore company is a great option to begin with. Other than a wide range of benefits related to legal, financial or tax, it is also quite easy to set up an offshore company in Dubai. Before we jump into the details, let us get a better idea on offshore companies.
When a business is established in an area which is located outside the country and where the principal investors are present, it is called an offshore company. In business terms, offshore means “another country”.
Why is Dubai the dream destination for offshore companies?
Dubai is an ideal business hub in the Middle East, especially for offshore companies. Today, most of the businessowners want to open a branch of their business in Dubai as this global market regularly updates itself.
A large number of foreign investors put in their capital in the open market of Dubai by establishing their own company. Setting up a new offshore company in Dubai has numerous advantages. Like any other domestic business entity, the offshore company in Dubai can easily conduct operations, lease property, open bank accounts, and expand their business. However, the company can only conduct business outside the country where it was formed.
Listed below are the benefits of offshore company formation in Dubai:
The main advantage of offshore company setup in Dubai is that the majority of the population speaks English. All the documentation for corporate, banks, courts, and so on is available in English as well. This reduces linguistic assets.
An offshore company in Dubai has no obligation to maintain its books or record. It does not even require having a physical office for registration purposes. It takes only two to three days to set up a company at a very reasonable registration fee.
Offshore companies are entitled to strict confidentiality and safeguard their financial operations. The owners are free from the tension of protecting their company’s finances. This is because even though the company is registered in Dubai, the property can be located anywhere in the world.
Offshore companies enjoy a 100% exemption from import and export tax, income tax, personal tax, and corporate tax.
Apart from being free from the burden of tax, offshore company formation is flexible when it comes to the structuring of the business. No minimum capital is required. There is also no restriction on foreign currency, making it quite simple to open an offshore company in Dubai.
As per Dubai’s jurisdiction, the assets of an offshore company are protected from creditors, legal opponents, judges, or any other court activities. Thus, the foreign entrepreneurs are given full ownership. Apart from the absence of taxes, there is also no limitation on the withdrawal of capital and bureaucracy.
Dubai allows every offshore company to enter the share market. Furthermore, they can buy shares of any other company. One of the best advantages of having in offshore company in Dubai is that the least number of shareholders and directors is just one.
Dubai has several banks where offshore companies can open their account. Each type of organization can choose a bank that best suits their requirements.
Dubai has always shown a great scope for development, thus ensuring a favourable environment for economic activities to thrive stability throughout. Factors such as low set up cost, low maintenance, full ownership, and zero tax burdens, make the formation of offshore companies in Dubai quick, easy, and cheap.
The major complication faced by any new company is the jurisdiction of the location. It can make the process of setting up a company lengthy and tedious.
To book a free consultation with offshore company formation experts, contact Shuraa Business Setup now at [email protected]