OFFSHORE COMPANY FORMATIONS
Offshore company is an investment vehicle with a tax efficient and cost effective corporate structure for businesspersons to conduct international trade. This product is available only through a network of registered offshore agents who takes care of all administrative and legal matters.
Currently, there are 3 offshore jurisdictions in UAE:
- Jebel Ali Free Zone
- RAK Offshore (RAKIA)
- RAK International companies (RAK FTZ)
Key Features of Offshore companies:
- 100% Foreign ownership
- 100% Tax exemption
- Complete financial privacy and confidentiality
- No minimum capital requirement
- Quick and easy setup and operations
- No limitations on maximum capital and denomination
- Ability to maintain local / offshore bank account
- Option to open company with minimum one shareholder and director
- Worldwide recognition
- No bearer shares
- Can be opened through authorized Registered Agents
Purpose of Offshore companies:
- Commonly used investment vehicle
- Holding company
- Employment contracts
- Real estate asset protection
- Tax exemptions (depending on the jurisdiction and structure)
- Lawsuit protection
- Flexible business laws
- Own intellectual property such as patents, trademarks and copyrights
- Yacht registrations
- International trading vehicle
- Facilitates joint ventures
- UAE off shore companies cannot rent office and warehouse in UAE.
- UAE offshore companies cannot carry any business in UAE. Business in UAE is possible only through a subsidiary company.
- UAE offshore companies cannot carry on the business activities like banking, insurance, financial services etc.
- Banks usually follow strict due diligence while opening the bank account.
- Appraisal and financing from banks or private financials companies become very difficult.
- Trade benefits designed for the local resident companies may not be available to the offshore companies.
- UAE offshore companies cannot employ staff in UAE.