The benefits of an offshore company are numerous and most are closely related to the main functions of an offshore company formation. Some of the main advantages of offshore company formation include.
Protection of Asset
Offshore companies serve as legal tools for holding assets and protecting them from creditors, biased court judgements and fraudulent cases. UAE’s legislature protects the company’s property/assets with strong laws which makes it impervious for legal parties to attain disclosure.
Operational secrecy is another major privilege given to offshore companies. The owners, directors or even employees of the company are not subject to any public records. This prevents high profile and wealthy families from criminals, financial enemies and scam artists from inflicting any harm to their assets.
Ease of Incorporation
The reason why many foreign investors are attracted towards offshore company formation in UAE is because its requires minimum paperwork and procedural hassles compared to other company structures. The process is quite straightforward and hiring a reliable consultancy agency in Dubai makes it even more simple.
The offshore company is not subject to any form of taxation or pay minimum to nil tax rate if setup as a holding company. This gives it a major edge on corporate and personal income, international transactions and foreign currency exchange freedom.
Low Administration Costs
Mostly, investors incorporate their offshore setups through business solution providers in UAE who provide administrative services along with their company setup packages. Public relation officers or PROs are responsible for liaising with the government, preparing the documents, submitting them, acquiring approvals, getting clearances and attesting documents. Along with that, they are supply office space provisions, HR services, bank account creation, secretarial services and other requirements to erect and offshore setup. Most importantly, this is done in a fraction of the cost calculated when doing it without a PRO agency and gives the company more time to focus on its business strategies such as revenue generation.
Minimum Capital Requirements
Typically, offshore companies have flexible cost structures and involve minimum paid-up capital. This allows many entrepreneurs and investors with financials constraints to open their offshore setups in UAE and benefits from its robust business environment and offshore company setup benefits.
Offshore companies make a great example of corporate flexibility such as freedom of annual meetings, the identity and location of directors and employees, no annual audit report, fast and easy banking solutions and tax exemptions.