OFFSHORE company formation in UAE: TOP 5 benefits
UAE is known for a myriad of things, but its business potential is acclaimed worldwide. Many foreign investors want to start their venture in UAE, and if you are one of them offshore company formation in UAE can be an excellent idea. The three significant offshore jurisdictions of the UAE in charge of offshore businesses include Ajman, RAKICC, and JAFZA. Do you want to set up an offshore company in the UAE? If yes, here are top 5 benefits you can avail of:
1. Tax Benefits The tax benefits are a win-win for enterprises who set up a venture offshore in UAE. Offshore companies in the UAE are exempt from corporate and income taxes, making it an attractive location for businesses that want to reduce their tax burden. Additionally, there is no value-added tax (VAT) on goods and services in the UAE. This tax-free environment allows companies to retain more of their profits and reinvest them into the business.
2. Asset Protection Offshore companies in the UAE offer a high level of confidentiality and privacy, which can protect your assets from potential lawsuits, creditors, or other legal actions. This means that your assets will be safe and secure, even in the event of a legal dispute.
3. Easy setup Process
An offshore company formation in the UAE is relatively straightforward and hassle-free. You don't need to be a resident or have a physical office in the UAE to set up an offshore company. This makes it a convenient and cost-effective option for businesses expanding their operations to the UAE
4. Access To Global Markets
UAE’s strategic location between Africa, Asia and Europe makes it easily accessible to global markets. The UAE has an excellent logistics infrastructure, with world-class airports, seaports, and highways, making it easy to transport goods and services to any part of the world. Additionally, the UAE has free trade agreements with many countries, making it easier for businesses to trade with these countries.
5. Reduced operating cost
Offshore companies in the UAE can benefit from reduced operating costs. The cost of doing business in the UAE is relatively low compared to other countries in the region, making it an attractive location for businesses that want to reduce their costs. Additionally, the cost of living in the UAE is relatively low, making it an affordable place to live and work.
With offshore company formation in UAE, enterprises can lower their start-up expenses, expedite their incorporation procedure, get tax benefits, and operate their venture without any audit or fully paid-up shares. In addition, business owners can also have multiple banking accounts which can be a win-win for global trade.
Despite all these bells and whistles, there are certain limitations for offshore businesses. They are not permitted to do business in the local UAE market or hire employees. If you want to adhere to compliance protocols or speed up your business setup procedure, working with reputed business setup consultants can come in handy. They can guide you through the process and ensure you comply with all the legal requirements.