UAE is renowned worldwide for its quaint streets, exotic beaches and towering buildings. For businesses, it has a reputation of being a tax haven – thanks to the government regulations for foreign investors. If you want to set up an offshore company in UAE, there are certain trade offs, but there are plenty of benefits. in this blog we talk about the Benefits of offshore business in UAE
Setting up an offshore company in UAE is really a one window operation and involves minimum paperwork. In fact, the owners of the company are not even required to be present in the Emirates during the time of incorporation. Here are some of the benefits of setting up an offshore company in the UAE:
The Benefits:
- The ability to channel funds and take advantage of the UAE market regulations, which are business friendly.
- An offshore company in UAE provides asset protection and gives you the chance to create a demand for your product/service in the Emirates.
- Once you have completed offshore incorporation in UAE, you effectively safeguard your business from any legal action against you in your home country.
- Offshore businesses in UAE pay no income or corporate tax. Furthermore, UAE has tax agreements with 40 countries that pave the way for international market expansion for offshore businesses in UAE.
- Offshore companies can set up multiple currency accounts and do business internationally. A prime example of this would be of dropshipping. However, they are prohibited to do business with residents of UAE – for that, need a business license.
- Most jurisdictions require no local shareholding structure.
- More benefits of an offshore business in UAE include anonymity and a high degree of safety
The Risks:
- As an offshore company in UAE, you have to abide by the rules and regulations laid out by the government. Refrain from any illegal activity; such as money laundering, concealing assets etc.
- An offshore company does not permit you to carry out conventional business activities; such as buying and selling. A trade license is necessary to set up a business that deals with Emirati residents.
- An offshore company provides certain tax exemptions. Do not confuse it with tax evasion, which is a breach of law.
- They only beneficial if your parent company is responsible for generating revenue from sale of goods/services. The offshore company can only serve to hold the vehicle of assets for the parent company; which allows for global market capitalization.
As always, Emirates Express is your the one stop shop to set an offshore business in UAE. Get in touch with us here.
