27 07 2020

Advantages of opening an offshore company in the UAE

Advantages of opening an offshore company in the UAE

Offshore companies can operate outside the UAE, that is, they can freely sell goods and services internationally. There are no obvious restrictions on the rental of premises, such as a warehouse or an office.

Offshore companies can have a certain type of relationship with UAE citizens who provide special services such as consulting or legal services. Also, there are opportunities for opening corporate bank accounts and gaining access to the banking system.

A very wide range of activities is open for offshore companies: consulting abroad, ownership of assets, international trade, provision of international professional services, brokerage activities, making investments as a joint venture, ownership of real estate abroad, activities related to shipping and management.

Also, there is a list of prohibited areas of activity, which include: insurance, trust management, the entire banking sector, collective investment schemes, guardianship.

An offshore company is easy to manage and register, and the low level of accounting requirements makes it more attractive in the eyes of investors. Offshore companies will protect your assets, provide clear management tools and protect you from taxes.

Having an offshore company, you do not need to pay taxes and transport duties. The only payment required is the annual renewal.

The Double Tax Avoidance Agreement does not apply to offshore companies, since offshore companies are not considered UAE residents. But offshore companies have the right to own shares of companies located in the United Arab Emirates and to create branches.

And if an offshore company is registered on the territory of Jebel Ali in Dubai, then, as an exception, it can buy real estate. Offshore does not give the right to obtain a visa for a residency of the United Arab Emirates.