UAE Offshore Company Formation- An Overview

UAE as a country has been an investor’s paradise due to the liberal policies of the government and the necessary infrastructural support given. Formation of a UAE offshore company has quite a number of positive factors attached to it which is illustrated below:

Firstly it portrays a good image in the minds of clients and suppliers. Secondly the process of setting up is straight forward and the greatest asset is that it is tax free in nature. It can be maintained as a confidential entity and a corporate bank account can also be opened by a UAE offshore Company. But considering the other side of the coin, there are some loopholes associated with it.

An UAE offshore Company cannot employ staff within the UAE. It cannot conduct any business activity, it also, needs to appoint a registered office within the country premises and last but not the least important factor is it needs to submit its audited financials to the UAE government. Offshore company incorporation can be a cumbersome and complicated process. First of all some international tax procedures and legal processes are also involved in it. The process of setting up a company in the base of the country is the important aspect. A direct access to the corporate assets of the company as well as building a brand image in the emerging markets needs to be ascertained. Offshore company formation is a matter of privacy and prestige of the company. It allows funds to be transferred from the geographical boundaries of one country to the other country and there is considerable reduction in paper work also.

Offshore company registration in general requires the same documents which are required for setting up a domestic company. It is widely recommended that we take the help of an agency having its presence in UAE because of its familiarity with the local laws. First of these entire agencies do an initial consultation, then they adopt a method of due diligence. After doing the ground work the necessary documents are incorporated which are fundamental for the formation. Then a registered office of the company is set up along with the formation of a registered agent. Finally we come to the final stage in the process where the requisite payment fees are done and then the company is finally registered.

Having done a detailed analysis of the perfect ingredients of an off shore company it is quite evident that setting up an offshore company is a perfect value addition to the company’s portfolio. Setting up an offshore company is a relative process but the only drawback is that it can be setup in a country, which encourages such an offshore company formation. In fact it is a matter of great privilege and a point noteworthy is that countries like UAE have encouraged this and the results are there to be seen.