Abu Dhabi is the capital of the United Arab Emirates, and this emirate is now gradually turning into one of the best places in the world to set up a business. The various locational advantages of Abu Dhabi, along with the support of the government has allowed this emirate to become one of the most sought-after places for entrepreneurs and people in business all over the world.
Many entrepreneurs prefer setting an offshore company. Such offshore companies have a vital part to play in the economy. Setting up an offshore company is a very lucrative business structure for limiting the operation cost of the business, but most people prefer to set up an offshore business because they do not prefer the tax policies of the country.
Let’s know more about offshore companies.
What Is an Offshore Company?
The term offshore means “outside jurisdiction”. An offshore company is a legal entity which is owned both by any individuals or any corporate body and is set up outside the boundaries of its country of origin. It is most commonly known as a non-resident company, and such company is not registered in the country where the majority of its operations are.
It is to be taken care that the offshore company is not confused with a free zone company. The offshore company is usually formed under a no-tax jurisdiction law, and the primary purpose of such a company is to avoid the tax laws of a country.
Why Set Up an Offshore Company in Abu Dhabi?
There are various other benefits of setting up an offshore company in Abu Dhabi.
1. Minimum Taxes
An offshore business will allow the company to utilize the taxation policy of a different country which will help enhance the profit of the company and reduce the tax liability.
2. Conducting Trade Internationally
As the offshore company will do business in a different jurisdiction from its country of origin, it is a very safe and secure way of conducting international business. This is one of the significant reason entrepreneurs, and people in the industry all over the world prefer establishing an offshore company.
3. Transfer of Property
In case the owner of the offshore company wants to sell some of the property, the relevant authority charges a percentage of the value received in the complete transaction. This transfer fee can be avoided altogether by selling off the company as a whole.
4. Acquiring Multiple Investors
In case of setting up an offshore company in Abu Dhabi, the total number of the shareholders of the company can range from 1-50. Very few developers will allow the flexibility of having more than one owner of such property.
5. Economic and Financial Stability
There is a range of auxiliary services that are available to an offshore company such as communication facilities, state of the art infrastructure, simple incorporation services, flexible legislative services, and many others. Such services allow for an offshore company to plant their roots firmly into the ground.
6. Simple Banking Procedures
Opening a bank account for an offshore company is a simple and straightforward procedure as there is the presence of various local and international banks which are conducting operations in Abu Dhabi.
Requirements for Setting up and Offshore Company in Abu Dhabi
The incorporation of an offshore company is very beneficial as can be seen above. If you are looking forward to setting up such a company in Abu Dhabi, then you must know the requirements of setting an Offshore company in Abu Dhabi which are given below:
- A minimum of 1 director of the company is required, and this number can increase up to 50
- The company can open a corporate bank account in the area
- 100% foreign ownership of the company is available to the management of the company
- No tax or duty is levied on such companies
- The company is not mandated to produce an audit report. The report will only be required in case of any doubt
- It is not necessary for the physical presence during the incorporation of an offshore company in Abu Dhabi
There is a higher level of privacy while using an offshore company. The relevant government authority will not require any critical and vital information of the company until necessary. This forms for an important reason why offshore companies are preferred among the upcoming entrepreneurs.
Though setting up a company in Abu Dhabi is comparatively easy, one should not take any chances while setting up the company. The assistance of a business setup consultancy is recommended while doing any such incorporations. Experienced consultants such as "Commitbiz" will help you and your company to grow further and will also help you in solving all your business problems. To know more about the services of "Commitbiz," do contact us today.