The first question you need to ask yourself is why. Sometimes it may make more sense to incorporate a company in the Cayman Islands, which has a reputation for being a tax haven; or the British Virgin Islands, where 40% of all offshore companies in the world happen to be. There is a right location for every company, depending on its business model. If you wanted to do business with India, then establishing an offshore company in Mauritius would be best.
If you were planning to attract US investors to your hedge fund, the Cayman Islands would be an ideal destination for your offshore company. An offshore company incorporated in the Cayman Islands is required to be audited every year, and those who know their way around finance are aware that this is a good thing. It minimizes the chances of financial wrongdoing, and thus exudes confidence. The British Virgin Islands offers a more robust regulatory framework, so there is more to be had when it comes to confidentiality. However, there is a stamp duty associated with every transaction, and this pushes up the cost of doing business.
This is why it helps to have someone experienced in matters of offshore company incorporation when establishing your company. If that person is well-versed when it comes to international laws and banking, so much the better. Only someone knowledgeable about offshore company formation in UAE can advise you correctly that it needs to be done for the right reasons – it must be in line with your business model. He/She will tell you that there are two offshore locations in the United Arab Emirates, namely the Jebel Ali Free Zone in Dubai and the Ras Al Khaimah International Corporate Centre (also known as RAK Offshore).
The difference between these two offshore company locations is that the Jebel Ali Free Zone allows you to own assets on the mainland in Dubai. So depending on your business model, one of these two might be best suited for you. The Ras Al Khaimah International Corporate Centre offers lower startup costs than the Jebel Ali Free Zone, so it might be worth taking a closer look at if you don’t intend to own assets on the mainland in Dubai. The mainland is the area that is not part of a designated free zone anywhere in the United Arab Emirates. Both the Ras Al Khaimah International Corporate Centre and the Jebel Ali Free Zone are officially classified as free zones. There are some 45 free zones in the United Arab Emirates, and around 30 of them are in Dubai.
Advantages of Setting Up an Offshore Company in UAE
Setting up your offshore company in the United Arab Emirates is not without its advantages. It allows for 100% ownership of your company as well as 100% repatriation of invested capital and profits. And the best part is that there are no corporate or income taxes in the United Arab Emirates. There are also no short-term or long-term capital gains taxes or inheritance taxes. Plus, you enjoy exemption from import and export duties.
The banking system in the United Arab Emirates is at par with the best in the world. The UAE Dirham, the local currency in the United Arab Emirates, is pegged to the United States Dollar, and this lends to a very favourable business climate for international investors. The laws are strictly enforced in the United Arab Emirates, and so having an UAE address is a reason to trust your offshore company – your company can be expected to hold its end of the deal.
Confidentiality is another thing that is strictly enforced in the United Arab Emirates. You are not required to publish your offshore company’s financial data or any information pertaining to ownership anywhere in the public domain. You do not even have to make known who the Directors of your offshore company in the United Arab Emirates are. This provides a layer of protection against any possible lawsuits. You can protect yourself against creditors or other third parties – you are not required to provide any information about the assets held by your offshore company in the United Arab Emirates.
The United Arab Emirates has signed double taxation avoidance treaties with 135 countries, so when you transact business in another country on the list, you will be exempt from paying tax in that country. This can be a major advantage to have, and another added advantage is that your offshore company in the United Arab Emirates is a limited liability company. Your liability is limited to the extent of the paid-up share capital.
The United Arab Emirates has strict laws against money laundering. Offshore companies are required by law to submit details on who the Ultimate Beneficial Owner of the company is, and those who do not provide this information are often subject to hefty fines. It is thus strongly recommended that when incorporating an offshore company in the United Arab Emirates, you enlist the professional assistance of someone who not only provides services relating to company registration in Dubai, but also legal support.
Why Choose A&A Associate LLC for Offshore Company Formation in UAE?
At A&A Associate LLC, we have years of experience helping incorporate offshore companies worldwide. We are backed by a team of legal professionals, business specialists, and financial experts who provide exemplary solutions that fall nothing short of international standards. We take pride in the fact that that we have been of assistance to clients from 100 countries across the globe. Every client matters to us, and we have a 98% client satisfaction rate so far. This has been achieved by us providing the entire range of business-related services under one roof.
We offer affordable bookkeeping, accounting, and audit solutions so that our clients always remain compliant with the laws of the United Arab Emirates. We also offer legal support provided by our in-house team of legal experts, and you will find that they are proficient at every area of law there is. We can be counted on to help no matter what your business need may be. Even if it is something as minor as renewing your Business License every year or providing visa assistance for your staff and family members.
We take care of the minor details so that you can focus on doing what you do best – running your business.