What is an Offshore Company ?

In financial language, the term “Offshore” is used to define any business or investment made outside the country of residence or in other words an Offshore company is a legal entity established in an Offshore Financial Centre (Offshore Jurisdiction).

Offshore Company, most commonly termed as International Business Company or a Non-Resident Company, is a legal structure which provides for a Low / No-tax environment for an entity or an individual which in turn minimizes tax burdens and improves wealth management.
Offshore company must be incorporated under Offshore company laws and regulations of Offshore jurisdictions
Offshore company must not trade within the Offshore jurisdictions

Below is the information for why Offshore companies are formed:

• 1.Privacy & Confidentiality and Asset Protection

• 2.Tax optimization (depending on your jurisdiction)

• 3.Flexible Business Laws & Lawsuit Protection

• 4.Business Expansion

• 5.International Financial Diversification

UAE Offshore Company

Opening a Dubai offshore business is an ideal, tax efficient and cost effective corporate structure for entrepreneurs who wish to conduct international trade.

An offshore entity can also be referred to as a non-resident “paper” company that allows foreign entrepreneurs to serve Africa and the Middle East without administrative obligations. Consequently, an offshore business is simply a wholly owned LLC which is legally tax exempt and has no annual accounting and tax obligations.

• 1. Offshore companies are used for i) International Trading ii) Holding company iii) Shipping company iv) Owning Real Estate v) Registering Copyright and Patents and vi) International Consulting Services;

Advantages of a Dubai offshore entity

• 1.An offshore company is quick and simple to set up in Dubai, particularly when compared to other business types in the UAE;

• 2.An offshore company in Dubai portrays a good image to Clients, suppliers, and even potential venture capitalists. Dubai is a globally-recognised jurisdiction which does not carry a ‘tax haven’ stigma;

• 3.If properly structured, an offshore business setup in Dubai is legally exempt from corporate tax, making it an ideal international trading vehicle;

• 4.The shareholders and directors in the off-shore company will not be required to register their names and details for public record;

• 5.In Dubai, an offshore company is exempt from all annual accounting and tax obligations;

• 6.Compared to other tax haven entities, setting up an offshore business is a cheap and easy way to get a corporate bank account in Dubai;

• 7.Dubai company documents are bilingual (English and Arabic), thus recognizable globally by banks, Governments, suppliers and investors.

Disadvantages of a Dubai offshore entity

• 1. A Dubai offshore entity is not allowed to trade in Dubai and the UAE;

• 2.The offshore entity can neither

• i) rent local premises in the UAE

• ii) nor employ staff in the UAE

• iii) nor secure residence or work visa for staff

For offshore company setup in Dubai contact us at +971504960033 or email us on rania@victoryventure.com