There are many benefits of setting up a business in Dubai as it’s an appealing destination for many investors and offers long-term profits to the businesses within a few months of their establishment.
The UAE is considered as a global business hub center that offers many benefits to foreign investors. The market offers many business options like Free Zone, Mainland, and Offshore companies, etc.
The process of offshore company formation in Dubai allows foreign investors to gain several benefits. That’s why we have come up with 7 benefits of setting up an offshore company in Dubai. They are as follows.
- Foreign Ownership
The Offshore company formation in Dubai provides 100% ownership to the investors. It means that the offshore company can be established virtually too, however, it may require approval by the authorities in case of real estate properties.
To encourage foreign investors, Dubai provides a 100% tax exemption to the businesses. An Offshore company is tax-free from all kinds of tax such as income tax, corporate tax, customs duty, etc. This means that they can invest freely and gain better profits.
- Anonymity and Transparency
An Offshore company encourages the entrepreneurs and the investors to carry out the business with complete anonymity and transparency so they can freely operate the business from all over the world. It also ensures that the privacy of the business is kept at all times.
- Legal protection
An Offshore company can easily hire a registered agent to assist in the documentation process without meeting the authorities to incorporate the process. It also has a faster incorporation process.
- Flexibility in terms of Bank accounts
An Offshore company can even open a corporate bank account supporting multiple currencies depending on the different corporate structure.
- Asset Protection
The Offshore companies provide asset protection jurisdictions to the foreign trustee that enables them to secure the assets within the company through the legal rights and provides them a reliable platform as compared to other business structures.
- Double Taxation Avoidance Agreement (DTAA)
This agreement enables the foreign investors and residents to avoid paying taxes in the source country and the residence country. The agreement currently includes 40 countries in the world and encourages investors to set up more offshore companies in Dubai and the UAE to stabilize the international market and gain foreign investments.