UAE Offshore company formation is one of the best opportunities for investors willing to channel their funds and capitalize the international markets. An offshore company registration is beneficial as it offers immense tax saving as well as provides companies to function globally.
However, every new businessman or entrepreneur incorporating an offshore in the UAE must complete the significant things that can be extremely helpful before starting incorporating an UAE Offshore company.
Offshore Companies in UAE should not be confused with UAE Free Zone companies. An Offshore Company is a legal business entity that is set up with the intention of operating outside its registered jurisdiction and/or the location of its ultimate ownership.
There may be many reasons to register an Offshore Company, but the general benefits of utilising an offshore corporate structure include:
- Providing a gateway for international market expansion;
- Access to a stable and business-friendly legal system;
- Access to a more flexible regulatory regime;
- Offering tax neutrality on international earnings in respect of (depending on jurisdiction) personal or company income, capital gains and inheritance taxes;
- Offering better access to global funding;
- Providing a vehicle to separate or protect assets, such as Intellectual Property, from operating entities.
The three principal jurisdictions offering Offshore Companies in the UAE are Ras Al Khaimah (RAK), the Jebel Ali Free Zone (JAFZA) and Ajman Offshore. All are “tax free” jurisdictions that levy no income tax or corporate tax and permit 100% foreign ownership. The UAE has signed Double Tax Treaty agreements with 90 other countries.