GNcareers, from Gulf News

Basic information in setting up an offshore firm

Setting up offshore firmImage Credit: Supplied

Many choose to set up offshore companies for several reasons including protecting their assets from litigation, amending the tax burden associated with operating in their home country and protecting the company from political unrest or economic instability within their home country.

There are several offshore companies in Dubai. They take advantage of the emirate’s ideal economy and legal system. They also capitalize on tax-free earnings and the absence of public register of shareholders and directors, all the while portraying a professional and strategic location to clients, suppliers and investors.

Forming an offshore company in Dubai is quick to incorporate but limitations are in place. For instance, offshore firms are not permitted to trade and rent local premises in the UAE. They must submit audited financial statements annually to the Dubai government. Ras Al Khaimah recently joined Dubai in offering offshore company holdings with the formation of the International Business Companies (IBC) registry, making the UAE a more favorable option for offshore investments.

Offshore company formation may look favorable to everyone, but it is really only beneficial to those operating in certain fields. E-commerce or web-based businesses are ideally suited for offshore company formation, as are international business, stockbrokers/forex traders, holding property, consultants and IPR holders.

Handy Hints
• Offshore firms capitalize on tax-free earnings
• They are not, however, allowed to trade in UAE
• Offshore formation suited for e-commerce, etc.

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Source: Nicholas Baker, Special to Classifieds
The writer is a freelancer