Important Points to Consider While Incorporating Offshore Company in UAE

Very few people are aware of the existence of offshore companies or what these terms even mean. The term “Offshore” relates to managing, registering, conducting or operating in a foreign country, typically with legal, financial and tax benefits.

Offshore company is incorporated outside the country of its main business activities or shareholders, directors and beneficial owners. A typical offshore company is also known as an international business company (IBC). This type of body does not pay taxes in its home jurisdiction. However, it must also carry out all its business activities outside of the country of registration.

UAE Offshore company incorporation can be carried out in a number of jurisdictions. The main decision criteria are the reputation of the jurisdiction, the price and time to incorporate.

Below are mentioned some important considerations for UAE offshore company incorporation:

• Ease of Reporting: The compliance and reporting in offshore companies are limited as compared to onshore jurisdictions. Most of the offshore companies would not require annual reports and accounts filings in the jurisdiction of the company formation. Instead, an annual flat government fee is being charged.
• Taxation: Most of the offshore companies do not pay taxes on the income derived from offshore operations.
• Cost of Operation and Fees: As there are limited reporting requirements, offshore companies generally pay lower maintenance fees as the cost of auditing and accounts preparation is often irrelevant. Fees of registered offices are also considerably lower than renting or buying premises in onshore jurisdictions.
• Asset protection: It is mandatory in the international business environment that the laws of the jurisdiction of company incorporation are applied, rather than those where the company has its operations setup. Many offshore authorities are known for their favorable asset protection laws.
• Anonymity: Most offshore registrars do not reveal information about the shareholders, directors, and beneficiaries of an offshore company. Thus, the underlying principal may secretly carry out the transactions in the name of an offshore corporation, which is a separate legal entity.

These considerations may lead you to effective company incorporation in UAE. The other ways to successfully incorporate your offshore company include availing UAE company formation services. These services will lead to easy and best offshore company incorporation in the UAE.