Setting Up an Offshore Company in the UAE
To relocate your existing business overseas or set up an offshore company in the UAE, is a vital step toward internationalizing yourself and your assets.
There are 100% legal and legitimate ways to structure your business interests overseas and realize significant benefits from an asset protection standpoint, as well as tax-standpoint. So, whether it is for tax reasons, reduced set up costs or otherwise, here is some guidance for those who seek to move their business overseas or set up an offshore company in Dubai.
In general, part of moving your business overseas is about reducing or eliminating your tax burden. Having the right team in place to manage your business once it is set up is important to make sure you are in compliance and making the most of all tax benefits. The real tax advantage from running an UAE offshore company comes from tax deferment, meaning you postpone the payment of taxes into the future. If you run a business overseas and reinvest profits within the company, you can defer taxes indefinitely. Being able to reinvest your capital tax-free combined with the power of compound interest makes this a truly exceptional opportunity.
Offshore online business
Online businesses in particular are an excellent fit for offshore business because they can operate anywhere in the world. With an offshore business, you can process payments in one country, host your website in another, keep accounting records in another, and pay minimal tax in another. If you incorporate your foreign business properly, it provides a legal way to defer tax payments, as well as enabling much reduced liability.
Offshore company formation
While the process of offshore incorporation itself is straightforward, in some countries, laying the proper groundwork before and after the official process is important. This also means consulting with a qualified tax attorney who understands the rules and regulations in your home country. The best thing you can do is choose the right representative and once your company is approved and set up, the next step is to open a bank account and possibly an offshore merchant account for your business.