The term ‘off-shore company’ is used by many business gurus and analysts widely to describe the nature of business of some companies. However, not everyone is aware of what exactly is meant by an offshore company. UAE is a regional hub of activities where many investors prefer to open new businesses because of its strategic location as well as tremendous business opportunities. UAE offers a thriving market to investors to launch new businesses or shift their assets to enjoy more freedom and trading opportunities. There are many benefits attached to opening a new business setup in UAE as many big names in global trading have already established a strong presence here. It is for the investors to decide where they want to launch their business establishment in UAE. At the time of establishing a business in Dubai or during the process of Company Registration in Dubai, you enjoy a chance to choose whether you want to open the company in the mainland of Dubai, establish in a free zone, or want to operate as an offshore company. There are many advantages as well as risks related to opening an offshore company in UAE. In this post, we will tell you what is an offshore company and what are the benefits of opening an off-shore company in the UAE.
What is an off-shore company?
An offshore company or business is established outside of the country in a bid to increase the opportunities for international business. The head or core working body of the offshore company is based in a different country than the offshore company. Offshore companies are established because of various reasons and the top reason among them is to mainly enhance the prospects of international business. To establish an offshore company, you have to take the help of an expert business registration company such as IMas Biz to assist in the registration process as well as in acquiring an Offshore License in Dubai. There are other terms also coined to call offshore companies such as non-resident companies of International Business Companies. Here are some of the benefits related to establishing an offshore company in the UAE.
Benefits of establishing an Offshore company
The main purpose of opening up an offshore company is to facilitate the owner with tremendous opportunities for global trading. The lenient conditions for offshore businesses are pivotal in enjoying the increased chances of global trading.
Exemption from local taxes
Another leading factor that is driving investors to open offshore companies is an exemption from many taxes that are mandatory to pay for mainland companies. Taxation has a serious impact on the operations of any business therefore the exemption from certain taxes allows investors to avail themselves of the opportunity and engage in international business.
Exemption from international taxes
The offshore company also enjoys exemption from international taxes that are quite heavy on the pocket. The formation of a company as an offshore relieves the investor from the stress of paying high amounts of money in taxes.
Exemption from Filing and Documentation
Opening up a company in the mainland of UAE involves a robust system of filing and documentation. Establishing an offshore company reduces the amount of energy required for competing in the extensive documentation process. As compared to mainland companies, the documentation for offshore companies is simple.
No residency requirement
One of the main attractive points for opening up offshore companies is that the owner of the company doesn’t need to reside permanently in the country where he/she has registered the offshore company. To operate a company registered in mainland Dubai, the owner is bound to live in Dubai. On the contrary, setting up an offshore company exempts the owner from the condition of living in Dubai. The owner can very well be in India and still run operations in Dubai.
Low License Cost
Another driving factor behind the popularity of offshore companies in UAE is that as compared to mainland companies, the cost of an Offshore License in Dubai is lower. If the investors have fewer resources, they can still enjoy the perks of owning a business in UAE by having an offshore licensee.