The word Offshore means something that is located outside of one’s country of residence. When a company conducts its operations outside of its country of registration such a business entity is called an Offshore company. Offshore company formation guarantees so many benefits for investors. There are legal and monetary benefits connected with Offshore company formation.
Two separate jurisdictions are assigned for Offshore company formation in the UAE. And they are Jebel Ali Free Zone (JAFZA) and Ras al Khaimah (RAK). JAFZA was established in 1985 and is one of the first Free Zone jurisdictions formed in the UAE. RAK was formed in 2006 as a Free Zone entity. This article shall let you know more about the major benefits of offshore company set up in the UAE.
Major Benefits of UAE Offshore company formation
Stating below the main advantages of forming an offshore company in UAE
100% expatriate ownership
Offshore company formation offers full ownership rights for foreign investors. And this means the UAE national or local shareholder has no ownership rights.
Offshore company formation guaranteed Asset protection for foreign investors. Offshore companies can secure company assets in a secure and stable platform.
The businesses formed in the Offshore jurisdiction enjoy 100% tax exemption.
Speedy company Incorporation
The company incorporation process can be accomplished in less time.
Double Taxation Avoidance Agreement (DTAA)
The investors can enjoy the benefits of DTAA as UAE has established an agreement with more than 40 world nations. DTAA is an agreement between two or more countries that helps the taxpayer steer clear of tax remittances in two nations.
The investors can maintain business secrecy by establishing an Offshore company in UAE. This is one of the biggest benefits as far as investors and entrepreneurs are concerned.
The physical presence of the investor is not required to accomplish Offshore company formation procedures in the UAE.
The investors can enjoy the advantage of the opening of multi-currency accounts. The investors can make use of the multi-currency accounts for international money transfer. The facility also aids in hassle-free business transactions.
Cost-effective and simple company registration
The registration formalities of an offshore company in the UAE is far easier compared to Mainland and Free zone business formations.
RAK vs JAFZA
The benefits that the two jurisdictions JAFZA and RAK offer are almost the same. However, there are certain differences and they are listed below.
- The physical presence of the Director is mandatory for JAFZA company formation at the time of signing the business formation documents. However, the physical presence of the Director is not required for RAK company formation.
- Compared to the JAFZA, RAK is more liberal in terms of company formation rules and regulations. A Corporate entity can be the Director of a RAK Offshore company. RAK company formation can be achieved with one Director. JAFZA requires a minimum of 2 Directors and Corporate Directors are not allowed.
- When it comes to the cost of business set up RAK is a cost effective option compared to JAFZA.
- JAFZA with its long history and strategic importance is a more reputed jurisdiction than RAK. The proximity to Jebel Ali port makes JAFZA a high profile Offshore jurisdiction.
Hope you understood the benefits of offshore company formation in UAE. Kilton Business Setup Services offers assistance and guidance in establishing your Offshore endeavours in Dubai and UAE. We provide Offshore company Incorporation services for International business concerns. Get in touch with our consultants for the latest updates.