Dubai – one of the Arab Emirates – has become a true international business center in recent years, mainly due to its pro-business policy and its flexible legal and tax system, which allows investors to optimize the taxation of their company, enjoying a brand image and prestige.
An offshore company in Dubai is a company registered in the Arab Emirates for tax purposes, while its commercial activities can be carried out outside the country.
The incorporation of offshore companies in the UAE has, in recent years, been the preferred form of business establishment for investors seeking tax benefits by capitalizing on global markets and for the investor who wishes to carry out their business activities outside of the UAE. Entrepreneurs or large corporate entities create offshore companies in the UAE with the sole objective of strengthening the management of investors’ wealth and the protection of their assets.
The main uses of Dubai Companies are the following:
- Advisory and Consulting Services
- Investment and Joint Investment Companies
- Intellectual property
- International Trade
Among the main benefits of Companies in Dubai, the following stand out:
- Absolute confidentiality: The identity of the shareholders is confidential under Emirati Law.
- There are no limitations regarding the number of shareholders, their residence or their nationality. A single shareholder may be sufficient and may also be a manager/director.
- Registered business address in Dubai
- A politically stable place with a rapidly developing economy.
- A tax-free and business-friendly environment.
- No currency controls, quotas or trade barriers.
*Benefits of the Treaties for the Avoidance of Double Taxation*
The UAE has signed Treaties for the Avoidance of Double Taxation with more than 116 countries which helps the foreign investor to avoid being taxed in two countries at the same time. These Treaties offer a great opportunity to investments within the UAE. The incorporation of an offshore company could be the best way to take advantage of the benefits of the Agreement to avoid double taxation.
The companies are suitable for any type of legal activity, and activities related to finance, online gaming, banking or insurance can be carried out after obtaining the corresponding license. A company can carry out several activities.
Companies can own real estate in the UAE.
The establishment of the company in a free zone is necessary. There are various free zones so it is important to choose the area that best suits the company’s activity.
Companies can be managed from another country. For example, all official meetings of shareholders and management can be held abroad.
TAXATION
An offshore company created in Dubai does not pay taxes or fees on profits or on dividends or capital gains obtained. You simply have to pay a fixed annual fee of a few hundred euros.
Likewise, offshore companies are not required to maintain or submit their accounting records.
Shareholders who create an offshore company are anonymous and their identity is not registered in the local Registry.
Dubai applies banking secrecy.
Carlos Picos Consultora will provide you with the necessary professional advice and technical support in all aspects related to the incorporation and operation of your company in Dubai.
