Why offshore Dubai is a perfect jurisdiction to register a company?
Offshore Dubai – General overview:
- United Arab Emirates is one of the states of the Persian Gulf, located between Oman and Saudi Arabia.
- The capital city: Abu Dhabi.
- Official language: Arabic.
- Administrative divisions: 7 emirates: Abu Dhabi, Ajman, Dubai, Ras Al Khaimah, Umm Al Quwain, Sharjah, Fujairah.
Dubai is becoming increasingly popular as an offshore destination. Implementation of corporate vehicles in this country is becoming more affordable and the investment opportunities are getting more and more attractive. Dubai is an offshore zone with numerous opportunities.
Here is a recap of the main advantages of using offshore Dubai as an offshore tool:
- Dubai is not a “tax haven” and it is not included in any “black list”. The UAE is one of the top countries in the list of the International Organization for combating illicit funds (FATF) and meets all the regulation requirements regarding combating illicit money.
- Exemption from having to pay taxes. An offshore company in offshore Dubai does not pay corporate or individuals taxes. Only banks and companies involved in the oil sector are required to pay corporate income tax.
- A company in offshore Dubai offers a high degree of confidentiality. Information about the directors and shareholders will not be included in the public record.
- No exchange control
- Dubai is not involved in international agreements on the exchange of information with other countries. It is not expected that this status will change, because Dubai gains no tax benefit from participation in such agreements.
- UAE has signed an agreement on mutual cooperation / Elimination of double taxation with some jurisdictions, such as Malaysia, Hong Kong and UK. More of such agreements are expected to be signed in the future.
- No requirements for the introduction of the authorized capital
- No requirements for financial reporting and auditing
- The number of directors: one to six (legal or natural person)
- Number of shareholders: one to fifty (legal or natural person)
- There are no restrictions on citizenship and residency of directors and shareholders
- No restrictions on repatriation of capital
- Allowed to conduct business outside the UAE
- The ability to open and operate bank accounts in the UAE and around the world
- Holding activities: ownership of the shares of companies in the UAE and around the world.
There are restrictions to conduct of the following types of businesses: financial and insurance activities, any activity connected with the media, any activity relating to aviation.
In term of confidentiality in the UAE, there is no public register of directors and shareholders, but the company is required to provide a copy of the register of shareholders and directors of the registering agent.
Offshore Dubai can be described as a jurisdiction that still guarantees its customers privacy, security and discreet service.