In a global economy, the use of offshore centers plays a vital role in supporting a variety of corporate cross-border transactions, as well as facilitating the wealth preservation strategies of high net worth individuals.
The words “offshore business” and “offshore company” have no precise legal, tax or general business meaning. The word “offshore” often means nothing more than anywhere other than the place of physical location of the person using the word (i.e. overseas). We use the words “offshore business” and “offshore company” as terms of definition in connection with matters such as the structuring of international business and family wealth management or tax planning.
Our international corporate and trust services are built around this proposition. Due to ever increasing government legislation (in most tax based countries) designed to erode personal and corporate wealth, proper use of offshore company and trust have become a necessity for the protection and insulation of income and capital. This is now in fact a necessary competitive edge for companies with international operations.
Forming an offshore company, an offshore Bank, Trust, obtaining a second passport and preparing a “Will” are some of the instruments employed to achieve these objectives. Freedom from taxation and exchange controls are important reasons for the formation of an offshore company. A Trust is the single most sophisticated instrument for flexible tax, estate and financial planning.
An offshore company is a very flexible corporate entity commonly used in international tax planning, and can be integrated into a wide variety of business arrangements. Tax minimization, asset protection and confidentially are just a few benefits which can be achieved by a proper application of an offshore company.
Incorporation of an offshore company (or non-resident company) can be used for various purposes. One of the most common is the use of an offshore company as a holding company to hold interests in other companies in various jurisdictions, to hold trademarks, copyrights and other intellectual property rights, as well as to serve as the holding company for licensing of franchises. The income from taxable jurisdictions flowing to the offshore company (holding company) is not taxable.
Reasons and benefits for individuals and corporations to utilize offshore companies include:
The principal uses of offshore companies are:
Regarding the ownership of property located in the Emirate of Dubai by offshore companies, the Dubai Land Department (“DLD”) issued guidelines applicable from 1st January 2011 to the effect that only companies registered as offshore entities within the Jebel Ali Free Zone (“JAFZ”) are eligible to register real property rights with the DLD.
The guidelines do not apply retrospectively. Offshore companies’ currently holding title deeds issued by the DLD in relation to interests in real estate in Dubai shall not be affected by these new guidelines.
Details of the company beneficial owners, directors and shareholders are NOT part of public record. The Registrar of Companies does not require any data whatsoever on who is the actual beneficial owner of the new company. This information is only known to the licensed Registered Agent of the company and is kept in complete confidentiality. The internal corporate files of the company, like the Register of Members, Register of Directors and all Minutes and Resolutions, are kept at the offices of the Registered Agent and are also confidential.
Both Jebel Ali and Ras Al Khaimah offshore are not dependent or ‘overseas’ territory of another country and as such they are not sharing or reporting information to any overseas ‘principal’ or organization. Both Jebel Ali and Ras Al Khaimah are not subject to the EU Savings Tax Directive, unlike some other offshore tax havens related to the EU member states.
If you wish to incorporate an offshore company, please fill in our ‘Offshore Application Form’ and send back to us. One of our corporate team shall contract you shortly.