The opening of borders has led to the fact that current entrepreneurs have the right to earn money not only in the country where they were born, but also far, far beyond its borders. Opening a company on the other side of the world is not a dream for a long time, but a reality that many businessmen from different countries have touched. Offshore UAE today is one of the best opportunities for legal earnings in a developed country with low taxes. Learn more about ajman offshore company formation at yourtaxadvice.com.

Offshore UAE compared to other jurisdictions

The offshore industry has been around for a very long time. For the first time, Greek merchants came up with a method of evading paying taxes to the state treasury, who first transported their goods to small islands located near large cities, and then illegally delivered them to the place of sale. The technology to improve the offshore industry does not belong to the United Arab Emirates. Offshore  OA E  is a ready-made model with details specific to this particular country.

The very origin of the word "offshore" (outside the borders) was originally not so much legal, but economic and geographical. American journalists wrote a revealing article about a certain American businessman who, not wanting to replenish the state treasury at his own expense, transferred all assets to another jurisdiction. Investigations led to the opposite effect that journalists had hoped for: businessmen, instead of censure and condemnation, began to learn from the experience of a more cunning colleague. True, at that time no one had yet heard of offshore companies in the UAE.

The offshore industry confidently walked the world, conquering more and more new territories: Europe, Asia, Africa. Today it is customary to distinguish three types of offshore zones:

1. Classic offshore companies (Belize, Dominican Republic, Panama). They are most often used solely to reduce the tax burden on the company. They are too suitable for work, because they have a very unpresentable reputation. There is no need to audit and pay taxes here, there is only a fixed annual fee.
2. Low-tax offshores (islands under the jurisdiction of the UK, Cyprus, Hong Kong). Most companies registered in these offshore zones are required to pay taxes, albeit under a simplified scheme, and maintain transparent accounting. Firms in these zones operate successfully, if they were not registered, of course, for some other purpose.
3. Average tax offshores (Denmark, Switzerland, Austria). Audits are obligatory here, although tax amounts are lower than in the home countries of businessmen, but they also significantly hit the pocket. But offshore companies registered here have an excellent reputation.

The UAE offshore stands apart from all this classification, because companies registered here will have a good reputation, as in European offshores, but the tax climate and audit requirements are more reminiscent of classic free zones. That is, it can be argued that the UAE FEZ took the best from all world zones, creating optimally comfortable conditions for foreign entrepreneurs.

Advantages of offshore UAE

The United Arab Emirates is a country that today is just perfect for business. The number of its advantages is huge:

1. Offshore UAE - an opportunity to become the owner of a company whose reputation will not embarrass anyone in the business world. The offshore industry of this country is not on any blacklist, which means there are no big money laundering scandals.
2. The United Arab Emirates is one of the most peaceful countries politically. Over the past hundred years, there have been no political riots or unrest associated with the dissatisfaction of the people with their power.
3. Despite the strong Muslim traditions, the local population and the leadership of the state are very loyal towards both foreigners and non-Christians, if they are ready to follow the laws of the country and respect the feelings of the faithful: do not eat and drink on the street in Romodan, do not dress too boldly (especially this applies to women), not to annoy local women, etc.
4. Offshore UAE is an opportunity to have a profitable and absolutely legal business. There simply cannot be another in the Emirates. Here they are very uncompromisingly against those who break the law, which is why the rule of law prevails in this country.
5. Many financial institutions dream of entering the UAE market, but only those who have an impeccable reputation and have been working in the financial industry for a long time succeed in this. That is why, when opening an account, an entrepreneur can be sure that he becomes a client of a reliable bank.
6. There are several dozens of free zones with the latest infrastructure. SEZs operate in all emirates, they have a different focus, differ in conditions and the cost of registering an offshore UAE, in general, businessmen will definitely have plenty to choose from.
7. The UAE government is constantly working on improving business legislation. Already today, entrepreneurs can register their offshore companies in the UAE using a simple procedure. In addition, corruption and bureaucracy have long since left the government offices of the Emirates.
8. In some ways, UAE offshore companies continue to maintain the industry's reputation as a tax haven. Offshore companies in the Emirates are not subject to income taxes and other fees. And audit reports in any FEZ (except for Jebel Ali, Dubai) do not need to be submitted.

Of course, these are not all the advantages of UAE offshore companies. Every entrepreneur doing business here will surely be able to add a few additions to this list.

Disadvantages of offshore UAE

Any jurisdiction has not only a number of advantages, but also some disadvantages. If in some free zones the cons look very impressive in order not to start a business here, then the UAE offshore, in fact, has no serious drawbacks. And yet, it is worth mentioning some of the flaws of this country:

1. An offshore company will not give you the opportunity either to conduct business in the Emirates (the territory of the FEZ is no exception), or to rent a real office. Only the legal address.
2. One of the advantages of registering an onshore company is a resident visa, but the offshore UAE does not provide such an opportunity.
3. To open a company, you will have to provide a business plan, which, however, is more of a formality.
4. The legislation of the UAE is based on Sharia law. The owners of offshore companies registered in the FEZ are less subject to Sharia influence, but still it should not be ruled out.
5. You will have to visit the Emirates at least for one day to sign documents and open a bank account.
6. The UAE government has not yet signed an apostille agreement, therefore, in order to use documents outside the UAE, they will have to be legalized. And this is a very expensive procedure.

Owners of onshore companies add to this list other disadvantages of doing business in the UAE (unbearably hot summer climate, original methods of doing business by local entrepreneurs, etc.), however, owners of offshore companies in the UAE do not care about such shortcomings, since they will conduct their activities for outside the Emirates.