Companies not intending to engage in any business within the UAE (whether onshore or within one of the free zones) can set up an entity under the offshore regulatory system. Typically, such businesses act as holding companies and do not carry on commercial activities. Under the offshore regulations of certain free zones, these companies act as a vehicle to own freehold property onshore.
While many jurisdictions are considered only as tax havens, UAE Offshore Company Formation in Dubai, Ajman or Ras Al Khaimah provides some unique advantages. United Arab Emirates is a ‘real’ country with a ‘real economy’ and a population of approximately 11 million. It has an established history of international trade, finance and business, and today it is one of the fastest growing countries in the world with one of the highest standards of living with utmost security. The UAE offshore jurisdiction serves as an ideal location for asset protection, wealth optimisation, parking excess funds etc.
Pressure is being applied on traditional low tax jurisdictions by the European Union (EU) in conjunction with the Organization for Economic Cooperation and Development (OECD). UAE is not a member of the OECD. Therefore, setting up a UAE Offshore Company offers a great alternative to other traditional offshore jurisdictions.
It is important to note that UAE has Double Taxation Avoidance Agreements (DTAA) with a number of countries. Double taxation agreements protect individuals and corporations from being susceptible to paying tax on the same item during the same time period. These agreements determine which of the two states concerned should levy tax in a particular situation. UAE has signed DTAA with Austria, Belarus, Belgium, Canada, China, Czech Rep., Egypt, Finland, France, Germany, India, Indonesia, Italy, Lebanon, Malaysia, Malta, Morocco, New Zealand, Pakistan, Poland, Romania, Singapore, Sudan, Thailand, Tunisia, Turkey and Ukraine. These agreements make UAE Offshore Company formation an even more attractive proposition.
Why UAE for Offshore ?
- UAE is independent or ‘overseas’ territory and white-listed.
- UAE has Double Taxation Avoidance Agreements (DTAA’s) with several countries, currently more than 40.
Few Salient features of UAE Offshore company are ;
- 100% income tax exemption
- 100% corporate tax exemption
- 100% capital and profit repatriation
- No capital gains tax
- No withholding tax
- Safe parking of funds outside home country
- Corporate Bank Account: Bank account opening with UAE prime banks, multi-currency, with full internet access, making it easier for international money transfers.
- Physical Office not required: No physical office in the UAE required with the Offshore License. You will use our physical address as registered agent with the government, saving you a lot operational costs in terms of renting offices.
- Asset Protection in Case of Death: In case of death, corporate ownership of assets (such as properties) is transferred via simple company share transfer to new beneficial owner, saving a lot of legal inheritance troubles and costs.
- Confidentiality: Corporate ownership and business ensures beneficial owner’s confidentiality.
- Joint Investments: Best choice in case of joint investments and joint business owners.
- Company can own real estate properties on approved areas by the Authority
- Hold multi-currency bank accounts
- No foreign currency restrictions
Eufrasia management service has incorporated over 400 offshore companies and are well versed with all regulation and procedures.
- Registered Office with PO Box
- Registered agent
- Preparation of Memorandum and Articles of Association
- Preparation of registration forms
- Preparation of Incorporation certificate
- Assistance for opening multi-currency bank account
- Filing with the registrar of companies
- 100% confidentiality