Offshore businesses are formed for the purpose of operating outside the country where it is registered. An offshore business, on the other hand, can be located in a country with high tax rate or one with low or zero tax. Some countries, especially those in the United Arab Emirates, have very few corporate regulations and moderate management costs – this makes them desirable to people who would want to set up offshore businesses.
So, generally speaking, and according to the law, an offshore business should have an agent who acts as the link between the government and the business. Many people start offshore businesses because of low taxes, freedom from state regulations, the ease of making international transactions, and multi-currency funding of accounts out of the country.
Before setting up your offshore business, generally speaking, you are required to follow certain steps:
Where does one start?. Before you set up an offshore business, you must have an offshore bank account. You will require a valid passport, a six months bank statement, and duly stamped bank forms. After opening an account, you can go ahead and submit documents for opening an offshore company.
Before setting up an offshore business, there are certain requirements you have to meet. For example, the name of the company. The name should describe what the company is all about. The name of the business should end with Limited or incorporated.
If you already have a name, you should check with the registry for availability. The shareholders can be legal entities or people. There is no limitation based on citizenship or residence. The articles and memorandum of the association. There have to be submitted as well as all registry data on shareholders that is not public.
All shareholders including the director must submit their valid passport copies and all valid proof of residential status. These could be account statements of the original company and utility bills. They should also include an original bank approval letter.
There are many advantages to setting up an offshore business. And on the positive side, below are some of them:
There exists an asset protection jurisdiction for the protection of offshore companies. Moreover, this provides a strong and reliable platform for investors as compared to the locals. This protection to foreign trustees enables them to build a “legal wall” that shields the assets of the company from their creditors.
Offshore businesses value privacy and a business can be conducted in complete anonymity. Moreover, the businesses do not require to display public records of directors and stakeholders. This makes it possible for entrepreneurs and businessmen from around the world to conduct such businesses.
Offshore businesses in UAE are tax free; this means that business people gain complete returns. This encourages more stakeholders to invest in the region, therefore, creating a better economy and more commercial benefits. Apart from the exemption of tax, the state also allows for the complete foreign ownership of the business.
In case of a legal pursuit, you will be able to save your property. An offshore authority ensures that it is incorporated ethically; however, in case of a legal judgment, your resources remain protected.
An offshore business does not need to be set up physically; it can be in virtual form. Even so, it can own real estate properties provided that they are approved by the relevant authorities.
Offshore businesses are faster to register and set up. It is not necessary for investors to meet the authorities; a registered agent can finish the process by getting the documents signed by the investor at his office.
Bank accounts opened by offshore companies are largely flexible and can accommodate multiple currencies. This makes it easy for the business to transfer money internationally through various methods such as wire transfers or through online payment processors.
Although conducting an offshore business in the UAE is flexible, there are certain activities you cannot engage in. These are:
Setting up an offshore business is made simple by the laws and requirements put in place. With the right agent, documents, and capital; you will be ready to set up your own offshore business. Even though there is some type of businesses that cannot be set up by foreigners, they can’t compare to the numerous opportunities open to foreign investors. So, go ahead and start your business today!.
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