If you are planning to start a new company, Dubai is undoubtedly the best location for it. Not only are there law benefits, but Dubai’s growing infrastructure and profitable environment can do wonders for your start-up.
However, the business world in this country is divided into three distinct zones. Without the right guidance or a wrong choice, your company might not be able to reach its full potential. Furthermore, each of these zones comes with its own set of benefits, which further make it harder for you to choose the right one.
In comparison, the mainland has much stricter regulations for start-ups which is what makes Free Zones and Offshore Zones the best locations for new companies. However, if your business deals more with international trading, setting up a UAE offshore company is your best bet. There are quite a few reasons for it as well, some of which are further mentioned here.
International Market Expansion:
This is one of the main advantages of opening an offshore company in Dubai. It can give you an efficient way of expanding your business overseas. UAE allows you to form your offshore company on paper without having to invest in costly infrastructure.
This further allows you to use that capital elsewhere while also making your offshore company available for international collaborations and deals. In addition to that, you can conduct multi-currency transactions with a single bank account in UAE.
With a UAE offshore company, you will surely get higher confidentiality with only a minimum amount of liability. You are not required to show the company’s financial records and any such information. Similarly, you can keep your ownership details concerning any public domain discrete from the governing bodies.
As an offshore company, since you are not directly under the government’s rule, you are not required to reveal any such sensitive information. However, if any third party suspects your offshore business to be involved in criminal activities, you might be asked to present such data.
Numerous Tax Benefits:
Tax benefits and concessions are one of the main incentives why entrepreneurs choose to set up an offshore company. Although tax evasion and avoidance are often confused, one is legal, while the other is not. Setting up an offshore company in UAE will help you avoid taxes and not evade them.
As an offshore company owner, you will be exempted from paying different taxes like sales tax, corporate tax, property tax, and even personal tax. In addition to that, you can also avoid double taxation. This means if you are conducting an international business, you do not have to pay the same tax twice.
These are some of the main reasons why you should consider setting up an offshore business in Dubai. However, the intricacies of company formation here can be confusing. It is best to seek help from professional companies like Emirabiz in such situations. They will ensure that your application process is hassle-free and quick and can help your company succeed.