Most businessmen prefer going offshore based on tax holiday concept to manage and run their business successfully. The additional benefits are freedom, secrecy and easy methods of running the business. Dubai has emerged as a place where maximum businessmen prefer to set up their offshore business as there are no taxes levied on offshore companies. The government of Dubai has also simplified the methods and procedures for setting up such offshore businesses. The simple reason for encouraging offshore business activities are that they help towards the economic growth and also earns good amount of investments from these companies. Being an independent country is an added benefit for having an offshore business setup in Dubai. It also has an agreement of avoiding double taxation with major foreign countries. These two factors ensure that life is much simpler for such offshore companies and also gives businesses the needed environment and opportunity to grow and earn more profits out of their offshore venture.
The companies that gets registered in Dubai earns maximum profits because Dubai is known as a popular destination for its richer resources and visionary guidelines and encouragements by the Government Authorities. Brief incorporation procedures required for offshore formation also facilitate the investor to think and plan their business through offshore sector companies; it can avoid the lengthy process of completing the documents and getting it registered after attesting these documents from all the authorities of different embassies and Ministry of Foreign Affairs. The advantages of an offshore company formation in Dubai are:
- The company is allowed to have 100% foreign ownership.
- The shareholder is not required to be a Dubai resident in particular.
- Separate register is not necessary to be maintained for the list of company’s officers.
- The offshore company enjoys complete secrecy and privacy.
- The authority grants the investor a right to own real estate properties in selected areas as mentioned in the law.
- The company can open a bank account for doing the daily transaction in any currencies.
- The company gets tax exemption for all the corporate as well as income taxes.
- Restriction on foreign exchange is not imposed for these companies.
- The capital and the company’s profits are the sole responsibility of the person starting the company.
- The cost of setting up offshore business is comparatively lower in Dubai.
- No office place is required for this company and as such it doesn’t incur cost for recruiting employees.
- Physical movement of capital is not essential for incorporation.
- The minimum number of shareholder and director of the company is one.
- An approved registered agent is required for these companies.
- The location of the registered agent can either be in a free zone or locally in Dubai.
Ras Al Khaimah Investment Authority, a government sector undertaking has established an alternate offshore location called as RAK Offshore. It takes care of the socio-economic growth, encourage Dubai’s ongoing diversification program and also manages Dubai’s increasing demand for offshore companies. The rising trend in Dubai has always been real estate dealings and investments. These types of companies are registered under RAK offshore. The International business companies (IBCs) are more interested in these businesses and slowly RAK has grown its client base to around 2000+ IBCs. . The most important feature of RAK offshore is to provide complete confidentiality. The IBCs owners are assured to be kept private in the law which helps to improve the business environment for both the individual as well as the corporate investors. The services that are provided by RAK offshore include both financial and non-financial services.
Jebel Ali Free Zone Authority (JAFZA) is one of the largest and fastest growing freezones. It was established in the year 1985 and today it houses more than 6400 companies in its 18 sq. km. area out of which around 120 are Fortune Global 500 enterprises. If you are looking to open your company in a free zone this surely is your best option given the transparent operation and business guidance provided by JAFZA. It is one of the leading forces driving UAE economy and you sure are going to benefit for the same.