Every entrepreneur desires to grow with limited expenditure and it becomes achievable through Dubai Offshore Company Incorporation. Do you know how? After all, having an offshore company in the UAE has more liberal laws than in Dubai Mainland regions.
But as we all know, every good thing has a few drawbacks too. Even the Offshore zones of Dubai have some glitches when it comes to doing business.
Are you now eager to know both the pro and cons of forming a company in offshore companies in Dubai? Well, it’s essential to give you a brief introduction to offshore companies before it. Let’s dive in.
What are Offshore companies in the UAE?
Offshore firms in the UAE are also popular as ‘paper’ companies amongst investors and entrepreneurs. An offshore company is a 100% foreign-owned limited liability company which doesn’t require a trade license for business activities. Here are some of the regions suitable for offshore company incorporation across the UAE:
1. Jabel Ali Free Zone (JAFZA)
2. Ajman Free Zone(AFZA)
3. Ras Al Khaimah(RAK)
Now, let’s check out a few pros of establishing a business in offshore regions of Dubai.
Pros of Dubai Offshore Company Incorporation
As we said earlier, forming an offshore company in the UAE has a plethora of advantages. Such firms get impeccable freedom from various governmental authorities and formalities. And these convenient procedures have been attracting investors and entrepreneurs to invest in UAE offshore companies for years.
Enlisted below are some of the benefits of incorporating an offshore company in Dubai.
1. Offshore entities exempt you from various taxes and several monetary advantages that reduce extra company expenditures.
2. The state laws do not regulate the offshore companies which give them even more freedom in doing trade.
3. As an entrepreneur, you can perform a cornucopia of transactions without any hassle or limitation.
4. Registering an offshore company is a faster process than other types of companies across the UAE.
5. You don’t need to look for an Emirate sponsor to establish an offshore company. It means you can hold 100% shares of your company.
6. Your entire information related to shareholders and board of directors remains confidential for offshore companies in the UAE.
7. Being an offshore company owner, you don’t have to undergo financial audits from the authorities.
8. One can enjoy the Freedom of getting the benefits of authorized multi-currency accounts in UAE offshore firms.
Cons Of Dubai Offshore Company Incorporation
Although there are neverending benefits of setting up an offshore company in the UAE, there are certain drawbacks to it too. Forming an offshore company is just beneficial for some sort of business. Scroll down to know a few shortcomings of incorporating offshore companies in Dubai.
1. You can’t perform your business activities inside the UAE with an offshore company.
2. There are limitations to getting local complexes on rent for the purpose of trade.
3. In an offshore entity, you get the authority to issue a visa, this thing becomes complicated if there are multiple owners in your company.
4. Setting up an offshore company is beneficial only for a certain types of business activities.
5. The requirement for hiring a company registration agent to complete offshore company registration in UAE.
Wrapping it up:
Undeniably, going for Dubai Offshore Company incorporation will be a great opportunity if you wish to save business establishment costs. And since the pros of UAE offshore companies are more than the cons, it gives you ample reasons for setting up an offshore company in the UAE.
All you need to do is to follow the right set of procedures for doing it. These procedures include everything, from choosing the firm name to opening an offshore bank account.
Are you confused about whether your business activities are suitable for UAE offshore company setup or not? Feel free to connect with the experts at TVG for hassle-free offshore company registration in Dubai.