Jebel Ali Offshore Banking and Bank Account
What is an Offshore IBC?
The definition of an Offshore Company is - a Company which rarely conducts business in its country of origin. In a jurisdiction where taxation is much lower and reporting restrictions are far more flexible than the country in which you reside. Other common names for this type of company are a 'non-resident Company' or 'IBC'. The term IBC stands for 'International Business Company' or 'International Business Corporation'
Important Information
About
Offshore Company Formation in UAE
Important information about Offshore Companies
An Offshore IBC is an entity (or Company) that can only operate outside the country of its incorporation BUT can trade or operate WITH established ‘mainland’ Companies which have been formed within the same jurisdiction. An example of this would be; an offshore company trading with an LLC or Limited company that has been formed in the jurisdiction of the Offshore Company.
Why to incorporate Offshore Company in UAE
:: Why incorporate a company offshore?
There are many features and benefits associated with the establishment of a non-resident company, and different individuals and organizations have their own specific reasons for incorporating in this way. Your financial affairs are YOUR business and as such, there should be a level of privacy and confidentiality. Going offshore provides these levels and this is one MAJOR FACTOR to consider when carrying out your ‘due diligence.’
Reasons to Incorporate Offshore Company in UAE
:: Reasons to incorporate
- Tax Savings
- Confidentiality
- Wealth Protection
- Simplicity
- Cost Effective
Reasons to Incorporate Offshore Company in UAE Free Zones
:: Free Zones in the UAE
Free Trade Zones have been set up with the specific purpose of facilitating investment. The procedures for investing in the zones are relatively simple.
The Companies operating in the Free Zones are treated as being offshore, or outside the UAE for legal purposes.
The free zones are suitable for companies intending to use UAE as a regional manufacturing or distribution base, with the bulk of their business outside the UAE.
UAE Free Zone Incentives
- 100% foreign ownership;
- Exemption from all import duties;
- 100% repatriation of capital and profits;
- Freedom from corporate taxation for 50 year;
- Inexpensive energy;
- Efficient recruitment procedures ensuring the availability of a skilled and experienced workforce;
- A high level of administrative support.
Dubai LLC Company Formation
LLC’s & Professional Companies
Limited Liability Companies (L.L.C) Setup in UAE, Dubai
A limited liability company can be formed by a minimum of two and a maximum of 50 persons whose liability is limited to their shares in the company’s capital. Most companies with expatriate partners have opted for this form of company. In Dubai, the minimum capital is currently Dh. 300,000 (US$ 82,000), contributed in cash. While foreign equity in the company may not exceed 49%, profit and loss distribution can be mutually agreed. Responsibility for the management of a limited liability company can be vested in the foreign or national partners or a third party.
Professional Firms in UAE
In setting up a professional firm, 100% foreign ownership, sole proprietorships or civil companies are permitted. Such firms may engage in professional or artisan activities but the number of staff members that may be employed is limited. A UAE national must be appointed as local service agent, but he has no direct involvement in the business and is paid a lump sum and/or percentage of profits or turnover. The role of the local service agent is to assist in obtaining licenses, visas, abour cards, etc…
Dubai Offshore Companies Bank Account
:: Offshore Bank Requirements
FIRST Offshore is able to assist you with the opening of an Offshore account. Offshore accounts combine several advantages, the most important one is the reduction of taxes. Tax offices for example will tax all funds as soon as they run through a local bank account. The authorities do not mind whether the money is intended for a local or a foreign company nor whether the taxes are already paid in another country. You can avoid all this trouble by simple opening an offshore checking account. The Offshore account also provides the highest level of service, phone banking, internet banking, cheques, ATM- and Credit cards. There is no check on your credit history. Offshore banks offer the highest level of privacy protection and are tax free.
Facilities available when opening a corporate bank account.
When establishing a corporate account you will be able to obtain the following facilities;
- Corporate debit cards.
- i banking facilities.
- Fax and telephone banking.
- Cheque book.
Expect to have to complete an application form supplying your offshore company details. This process takes longer then the incorporation it’s self but due to our relationship with several banks it has become streamlined. In most cases a bank account can take approximately 3 days to open and 7 further days to obtain corporate debit cards and i banking information.
Dubai Offshore Companies Are Tax FREE
Reduced Taxation Liability
Offshore companies can be established in low or no tax jurisdictions. The Emirates fall under the ZERO TAX jurisdiction and therefore has no issues of VAT, Corporation Tax.Tax on rental income, CGT Tax or IHT Tax.
:: Fewer Reporting Requirements
The Emirates of Dubai and Ras Al Khaimah (RAK) are far less restrictive then most other jurisdictions throughout the world, you will generally find that the extent to which company information is required to be reported it is generally much lower then other offshore jurisdictions. Business reporting, account auditing, filing of financial records etc., are much more relaxed and are likely to be far less than you would experience if you incorporated ‘onshore’ or in your home jurisdiction.
:: Asset Protection
It is possible to manage assets and business transactions in such a way that assets are shielded from any form of liability. An offshore company can hold ownership of a multitude of worldwide assets and hence protect against creditors. Transferring title of assets to an offshore company means that the settler (the person who gives up ownership in favor of the offshore company or trust) no longer visibly controls these assets. In this way assets cannot be seized in cases of insolvency, marital proceedings, professional negligence, or by the taxman. Regardless of problems in some countries, offshore companies and trusts, when correctly structured, are excellent asset protection vehicles, and are extremely flexible in times of political and economic instability.
:: Confidentiality & Anonymity
The Emirates has strong Client Confidentiality laws and refuses to exchange information with the Organization for Economic Cooperation and Development (OECD.) By conducting business through an Offshore company and carrying out all transactions in the name of the private company, the name of the underlying Principal of the Company can be kept out of certain key documentation.
Incorporating an Offshore Company in UAE is Simple
:: Simplicity of Operation
Apart from certain types of business – such as: Financial Services companies banking which are internationally regulated, the Emirates make it very simple and highly attractive for Offshore Companies to operate with a varity of activities.
:: Holding Companies
Offshore Holding companies can handle dividend receipts from a spread of subsidiaries. This allows a group to centralize its resources and maximize tax benefits. Careful use of tax treaties is necessary to obtain the best results. Offshore Holding Companies can be used, whereby the holding company can fund subsidiaries in a tax-efficient manner. Legal fees are often significantly reduced and publicity can be avoided for high-profile individuals and families.
:: Investment Companies
An Offshore Company is often used to make Investments and accumulate wealth. Just as an onshore company can invest in stocks, shares, property or commodities. The major difference is that the offshore company does NOT have to pay tax on its profits, nor does it have to pay inheritance tax when it is passed on to heirs. In many jurisdictions, withholding Tax is levied on income remitted out of the jurisdiction, but the careful use of double-tax treaties can reduce or even eliminate tax on the investment income. This may enable the Investor to make investments in high-tax countries from an Offshore base with minimal tax liability. Most importantly, the use of an Offshore Company also protects the identity of the ultimate beneficial owner. Anonymity comes automatically with Offshore Companies, and is respected by the law in the Offshore world.
Offshore Companies in United Arab Emirates Can Own a Property
:: Property-Owning Companies
Placing Property into the ownership of an Offshore Company yields many immediate advantages, including the avoidance of Tax on Rental Income, Inheritance Tax (IHT) and Capital Gains Tax (CGT.) Due to the anonymity of the ownership of the Offshore Company, changes only take place in shareholder-ship of the company in the event of death or re-sale, while title of the property remains with the Company. In other words, the Company can be sold instead of the property.
Additionally, any subsequent sale is greatly simplified. In some countries the establishment of title is time-consuming and costly; but once title has been established for a company-owned property it never needs to be dealt with again. Sales by share-transfer almost always save on legal fees, together with any transfer or value-added taxes that are levied in many countries. Government stamp-duties and capital gains taxes can also be avoided in many cases.
Start or operate your own UAE offshore company
:: Offshore Newsletter
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