An offshore company is also known as International Business Company (IBC) or a Non-Resident Company. Offshore company may be referred to as a company that is setup in a territory that is outside its own jurisdiction. The process to have an offshore company in UAE is simple. You need to approach an agent who will take care of the company formation stages. UAE has four offshore (IBC) jurisdictions, they are Ajman Offshore, JAFZA (Jabel Ali Free Zone Offshore), RAK FTZ (Ras al Kahimah Free Trade Zone Offshore) & RAKIA (Ras al Khaimah Investment Authority).
Offshore Company Formation in Dubai
Offshore company formation in Dubai and offshore company formation in the UAE in general can only be done through a registered agent with the UAE economic department. Offshore company formation in Dubai provides great financial and ownership (shareholders and directors) privacy as well as and security which match higher international standards.
Many companies operate an offshore company in Dubai for invoicing international clients, maintaining corporate banking account, maintaining anonymity, protecting assets and averting risk by managing their firm internationally. Having a dedicated office space is also not obligatory to operate an offshore company in UAE.
Advantages of Offshore Company Formation in Dubai
Key advantages have been listed as follows:
- Tax-free business environment
- Central location which is accessible from most parts of the country
- High quality infrastructure
- No public registration of shareholders and directors
- Quick process of incorporation
- Centrally connected systems which keep you informed of the status of company formation stages
Having said that, it is also important to note that a Dubai offshore company is not permitted to trade in the United Arab Emirates (UAE) also it cannot rent local premises outside the UAE.
Besides that above advantages there are other benefits too which include:
Structure for Asset Protection
In your offshore company in the UAE you can putting your personal assets separately as a separate legal entity. It is secure to have your assets in an offshore companies because they are not easy to locate in case of litigation suits. For further assistance you can approach professional business consultants or lawyers in the UAE.
Offshore company formation provides a strong layer of legal protection by removing your name from your assets. Lawyers typically perform a preliminary search to locate assets that may be tapped in the case of a winning judgment. Utilizing offshore companies by titling assets and transferring them to your offshore company can be a valuable tool in deterring these lawyers; preventing lawsuits and potential adverse judgments.
Privacy and Anonymity
In many jurisdictions within UAE, the company officers, shareholders and owners can be omitted from company incorporation documents altogether. In this way via your offshore entity you can conduct your business, bank transactions and/or manage your personal financial investments in great privacy and anonymity.
Offshore company incorporation is relative a simple process. With the help of company incorporation experts you can establish your offshore company in many jurisdictions quickly and seamlessly. Additionally, the later ongoing requirements for offshore companies are often less time-consuming than for onshore companies.
Offshore companies established in low or zero tax jurisdictions may reduce, delay or even completely eliminate the tax burden on the company. Of course, there are often taxes to be paid in the country of citizenship/residence or business domicile, but offshore company incorporation may minimize these taxes.