Dubai is known for its friendly and liberal economic policies. Dubai has witnessed a massive economic boom in the last five years. Open and amicable ties with other nations and the enthusiastic attitude of the ruler Sheikh Mohamed bin Rashid Al Makhtoom towards foreign investment has garnered much capital to the city.
A tax haven and superlative infrastructure has further consolidated its position as the unrivalled business hub of the Middle East. All these reasons have made Dubai a sough-after economic destination and has given a huge boost to the business sector of the city.
Dubai Offshore Company Incorporation
Dubai offshore company incorporation is gaining popularity for a variety of reasons. Dubai is not included in any of the international exchange of information agreements. This scenario is not likely to change as Dubai will receive no taxation gain by participating in such treaties. This leads to high levels of security, privacy and asset protection for companies and individuals interested in incorporating a company in Dubai.
Oil firms and banks are the only corporate tax payers in Dubai. All other firms are exempted. There is no income tax, capital gains tax and inheritance tax. There is also no formal record keeping of a company’s shareholders and directors in Dubai. In absence of official records and a taxation department all personal and company information remain private.
The most preferred license within the Dubai Free Zone is the Jebel Ali Offshore Company. Dubai offshore company is a convenient and profitable arrangement for foreign operators as tax mitigation, estate planning and asset protection is possible under the license.
Superior and simplified banking legislation also attracts investors to create an offshore bank account in Delhi.
At N.R Doshi and partners, we give you all relevant information about the above.
Benefits of Offshore companies:
Offshore jurisdictions require much less reporting, agreements and elaborate documentation in comparison to onshore jurisdictions. Establishment and maintenance of the company become relatively simpler. There is 100% tax exemption in most jurisdiction authorities. The level of information required by the registrar of companies differ in each jurisdiction.
Legal and asset protection –
Corporate governance requires the corporation to follow the guidelines of the jurisdiction where it is chartered. This applies even when the corporation is sued in another jurisdiction. In case of legal entanglements, incorporation of your company in an offshore jurisdiction that provides anonymity and complete confidentiality is more appropriate. It ensures legal and asset protection and mitigates excessive personal documentation as the company is a separate identity.
Thin capitalization –
Some offshore jurisdictions exempt the companies from ‘thin capitalization’ rules. One can form a company with just a nominal investment.
Financial assistance –
Offshore companies are usually allowed to lend monetary assistance for acquisition of own shares. This avoids the need for whitewash procedure.
Cost of operation –
Taking the plunge from being a on-the-move consultant to an incorporated firm becomes much simpler and cost-effective in a offshore financial centre.
Buying or renting of premises, hiring accountants, receptionists, IT providers become unnecessary and the cost of operation is cut down massively.
The above information is subject to change as per the government rules and regulations.
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