Check Your Luck with the Offshore Companies Now

October 22, 2020
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Polly Dom
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Offshore companies today have a negative connotation, the result of the endless controversies that have been frayed by the press and especially by national and international courts. But not everything that concerns offshore companies is necessarily negative, or illegal. This is an especially important point, which we will develop later on. So if you are wondering How to start a business in UAE free zone then this is the best solution that you can have.

For many reasons, many people want to know more about how to create an offshore company and about the benefits that can come from this option. In this article we will seek to elucidate our readers on the most frequently asked questions regarding the creation of an offshore company.
Many customers wonder whether it is worthwhile to set up a company or not when investing abroad. The main advantages of this structure are: tax efficiency, protection and succession planning. Understand more about it.

Many customers wonder whether it is worthwhile to set up a company or not when investing abroad. The main advantages of this structure are: tax efficiency, protection and succession planning . The disadvantage is basically the cost of structuring and maintenance, and therefore is not suitable for any size / profile of the investor. Here are the main questions I get and their answers to help you decide:

What are the advantages?

A very simple way to explain the differences in taxation between a PJ abroad (Offshore) and a PF is through a comparative table:

What are the costs?

The costs of opening, closing and maintaining this type of structure vary widely depending on the institution chosen to do so. But, in all I have seen, for simple structures in the UAE, we estimate that the opening cost will be between US $ 2,000 and US $ 5,000 and the annual maintenance between US $ 1,000 and US $ 3,000. For more sophisticated companies, the costs can be much higher. For Dubai free zone also you can get the best solutions now.

Is this structure legal?

A very important issue that needs to be clarified is the question of the legality of the structure. It is not difficult to read in the news that a politician who received a bribe had an offshore abroad. And so, the structure ends up being associated with illegality. Many people whose source of funds is not declared, opt for the structure of an offshore abroad to make it difficult to identify the account owner. But there is no illegality for the investor who chooses the structure, uses duly declared resources to capitalize it and informs his quotas annually in his IR statement.

What type of customer is this structure suitable for?

The tax deferral that the offshore structure allows becomes more and more advantageous the more aggressive and the greater the turnover of the investment portfolio. You will also have the perfect solutions with the pro services dubai now.

Regarding costs, the greater the client’s equity and the longer the investment term, the greater the cost dilution, which makes the structure more advantageous.

In short, taking all this into consideration and based on my experience with clients over the years, if the investor has any specific concerns regarding protection or succession or has an equity abroad of more than $ 300,000, it is worth talking to a specialized lawyer and financial advisor to assess the viability of the structure.