The Pros and Cons of Setting up an Offshore Company in the UAE
Having a business in the UAE is an option that many investors consider now when deciding on where to set up their business. However, choosing to do your business in UAE requires you to consider a lot of other matters. UAE gives you more than one option to register your business, you can register in a mainland area, free zone area, or offshore. Each category has its own advantages and disadvantages. And your decision should be based on which category is most likely to benefit the type of the business you are planning to run establish.
If you are looking for privacy and anonymity in your business, then you might want to consider an offshore company. However, before you take such a decision, you need to know well what are the pros and cons of having an offshore company.
An offshore company refers to one that is formed outside its home country’s jurisdiction, and with that comes complete privacy and confidentiality regarding your business information and financial matters.
Other advantages of running an offshore company include:
100% foreign ownership
100% tax exemption – no taxation on any incomes
No need for physical existence– you could run your business virtually
Fast registration – fast incorporation process
No financial reporting or auditing
The ability to hold a bank account with multiple currencies
On the other hand, there are some restrictions to having an offshore company:
You are not allowed to run your business through a mainland zone or a free zone
Some business activities are not allowed, such as banking and insurance
You are not allowed to rent an office or a warehouse
No visa will be provided
If you are considering to set up your company in the UAE, it is better to do it with a consulting agency, to guarantee you are taking the right decisions and making the right choices regarding your business. Global Link provides all types of services for all who wish to start their business in the UAE.
Contact us and let us assist you with your company formation process.