Formation of an offshore company refers to relocation of your existing business overseas. Dubai offshore company formation means to follow a course of action in order to legally establish an offshore company in Dubai with the purpose to conduct business internationally. It is commonly known as Dubai International Business Company or Dubai IBC, a registered and tax free company that is especially formulated in Dubai economic zone i.e. Jebel Ali free zone under United Arab Emirates Law and Dubai Regulations with JAFZA (Jebel Ali Free zone Licensing Authority).
The city of Dubai holds an international reputation as one of the most sought after destination for commercial and residential purpose. The recognition and economic growth that Dubai has accomplished over the last three decades is unprecedented in recent history. With the pro-business government devising policies in order to reduce bureaucratic hurdles for new business setups, having best in-class logistics infrastructure, providing access to fastest emerging markets, diverse pool of talented workforce and standard of living amongst the best in the world; these factors have contributed to make Dubai a commercial oasis in the present era.
Benefits for Businesses
Now days Dubai has become one of the most popular jurisdiction to setup an offshore company because the company enjoys international acceptance and a “white list” status as being not included in the FATF “tax havens and black lists”. Business leaders from around the world are attracted to form an offshore company in Dubai due to the following benefits.
Confidentiality of Dubai Offshore Company and its Asset Protection:
An offshore company in Dubai guarantees highest level of confidentiality and anonymity of the business. This is also due to the stable and reliable political structure of Dubai. Also the company is not liable to disclose any information such as public records of directors and shareholders. The government of Dubai is not a party to an international agreement of exchanging information of offshore companies. This feature ensures investor a highest level of privacy that he cannot get in his own country and is the main reason that foreign investors around the world want to register their offshore companies in Dubai.
Also Dubai offshore company provides asset protection to foreign trustee thereby creating a legal wall between the creditors and assets secured within the company. Your wealth and assets are owned by an offshore company which only you know that you own and under the law any information regarding shares, investments or client information cannot be disclosed to public.
Another major advantage of Dubai offshore company is that it is exempted from personal and corporate tax. This provision provides transparency for business, gain complete returns and to engage in further business activities. That is why business leaders around the world form their offshore companies in Dubai to eliminate their business from tax burden as being able to reinvest business capital tax-free along with the power of compound interest makes this an ideal opportunity.
There is 100% foreign ownership of Dubai offshore company which allows an investor to have complete control over business operations as well as profits as opposed to Dubai Mainland Company where a local sponsor is required to have mandatory ownership along with the foreign investor.
Several Business Activities in One Offshore Company:
Dubai offshore companies are allowed to take part in various business activities such as trade of goods and services or professional services. They can also be used as holding companies being shareholders and investors in other UAE or non UAE based companies and they can also acquire real estate. However Dubai offshore company is not permitted to engage in financial or insurance services.
- Dubai offshore company can open bank accounts in Dubai and hold multiple currencies.
- Complete repatriation of profits
- No yearly audit requirement
- Low maintenance and managerial costs
- It can also be in virtual form. There is no requirement to have office in Dubai.
For offshore company incorporation, it is not necessary for the owner to meet authorities for filing documents. This can be done by a registered agent which is mandatory requirement for offshore companies. The agent can get the documents signed by investor and complete the required procedure. We at KWS-ME help our clients in the formation of an offshore company by acting as a registered agent and doing all the necessary procedures for your business setup in Dubai. We also provide our client a location address for the office.
Furthermore, the registration process of a Dubai offshore company is easier and takes maximum of three to seven days. Our experts at KWS-ME having vast experience of company formation in Dubai, in depth knowledge of Dubai market and the laws governing offshore company establishment will help you in the formation of your company from start till end.
For more details visit JAFZA offshore company formation or contact one of our expert for free consultation and discuss your requirements regarding Dubai offshore company formation model.