Setting Up an Offshore Company in the UAE
Setting Up an Offshore Company in the UAE
Relocating your existing business overseas or setting up an offshore company in the UAE is a vital step toward internationalizing both 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 point of view, as well as when considering taxes. In addition, many options await those who decide to incorporate their offshore company in Dubai. So whether it is for tax reasons, reduced set up costs or others, here are some tips for those who seek to move their business overseas or set up an offshore company in Dubai.
UAE Company Advantages
Dubai is at the center of a region that is emerging as a major force in the global economy. Here’s some reasons why the UAE is the best place to set up your offshore company:
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Businesses in Dubai do not pay direct taxes on corporate profits or personal income and businesses can retain 100% repatriation of capital and profits, which is why many offshore companies are set up in Dubai.
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There is a stable exchange rate between the US Dollar and the UAE Dirham and there are no foreign exchange controls, trade quotas or barriers.
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Dubai boasts an extensive foreign trade network, giving the investors a wide range of options for potential global marketing outlets with a diverse portfolio of goods and services.
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Dubai is part of the world’s third largest export and re-export center, after Hong Kong and Singapore.
Tax Advantages
In general, one of the main reasons for moving your business overseas is to reduce or eliminate your tax burden. It’s key to have the right team in place to manage your business once it is set up to ensure you are in compliance with local and international regulations and getting the most out of all possible tax benefits. The real tax advantage from running an UAE offshore company comes from tax deferment, meaning you postpone the payment of taxes to the future. If you run a business overseas and reinvest profits within the company, you can defer taxes indefinitely. The ability to reinvest your capital tax-free combined with the power of compound interest makes this a truly exceptional opportunity.
Offshore Online Businesses
In particular, online businesses are an excellent fit for offshore business because they can operate from anywhere in the world. With an offshore business, you can process payments in one country, host your website in another, keep accounting records in a third, and pay low taxes in yet another. If you incorporate your foreign business properly, it provides a legal way to defer tax payments, as well as enables a much lower liability.
Offshore Company Formation
While the process of offshore incorporation itself is straightforward, laying the proper groundwork before and after the official process is important in some countries. This also means that it’s best to consult 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 incorporated, open a bank account and possibly an offshore merchant account for your business.
Europe Emirates Group is a consulting company in Dubai and has excellent local knowledge and familiarity with governance, local customs and laws. For years, we have been helping our clients reap the rewards of Dubai’s business-friendly culture. If you’re ready to take the next step and incorporate your offshore company in the UAE, contact us today.
Written by
Adrian Oton
CEO, Europe Emirates Group