Most popular scheme of doing business in the United Arab Emirates is an offshore company. This approach provides an beneficial conditions for business, optimization of tax payments, and protection of information related to the company and its shareholders.
What is an offshore company? In fact, it is a company registered in tax havens, or in other words on the territory of a country with special tax regimes. Typically, it entails either complete or partial absence of tax charges. Another feature of such jurisdictions is that companies are not required to file financial statements.
There are many ways for application of offshore companies, however, there are some basic tasks solved by offshore company:
- Protection of capital - the possibility of depositing company's assets on the accounts of foreign banking institutions. This procedure is fully legal and provides high degree of confidentiality regarding ownership of assets;
- Effective trade relations – facilitation of mechanisms for loyalty to companies operating in international trade, and absence of customs duties on import and export of goods;
- Investment climate is purported to provide high protection for investments and remove restrictions on repatriation of investment assets.
In addition, these schemes allow to benefit from economic and political stability for business, and the opportunity to enter new markets.
Tax planning tools and optimization are available for many market participants. Small companies and large producers and other market participants may cooperate with offshore companies. The main point is to ensure the compliance of your scheme with the requirements of your business and the applicable laws.
