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OFFSHORE2018-09-05T21:45:32+00:00

The offshore company is a non-resident company, which mainly means it does not trade within the UAE, and does not make its partners eligible to a residence visa. Also, it does not require the presence of a local partner in its share capital.

CHARACTERISTICS AND COSTS

REQUIRED DOCUMENTS FOR A RAK OFFSHORE COMPANY

  • copy of passport for each shareholder and director
  • original proof of residency (gas bill, electricity, telephone, mobile, etc …)
  • an original bank reference letter for each partner (printed on the letterhead of the bank)
  • all the application forms to be signed (we prepare them, you just have to review them and sign)
  • the Memorandum Of Association that we prepare for you, that have to be signed (3 sets)

WHY CHOOSE THE UAE AS AN OFFSHORE JURISDICTION

  • a safe place
  • its banking system is very good
  • Dubai is a place known all over the world
  • a leading international trading center
  • a hub between Asia and Europe (and the rest of the world)
  • The UAE are not part of the OECD and are not considered as a tax haven

BANK ACCOUNT FOR YOUR COMPANY IN DUBAI

We assist you totally in all steps for the creation of the bank accounts. They are all of high quality, the client profile will determine the most appropriate bank for him. We help you to choose.

Our bank assistance consists in introducing you to the Bank, in arranging the meeting with the banker, and in accompanying you to the appointment. We don’t just give you a name and a phone number to call. We are and stay with you.

EXAMPLES OF USE OF OFFSHORE COMPANY

The UAE are not part of the OECD, are not seen as a tax haven. The offshore company does not pay taxes.

Offshore companies are highly valued by Business or IT freelance consultants. It is their legal tool that allows them to contract with third parties and of course sell their services.

International consultants use their offshore company directly for the billing to their customers and/or agency firms in charge of finding them the missions.

Sometimes the consultant works locally in their country of residence and may not want to use directly its offshore company to bill its services. Then we can offer you the services of our partner in Europe, specially dedicated to represent you in front of your customers. We sign the contracts on your behalf and then charge your customers through the European company, which becomes the vendor of the service. More than 10 years of existence and up to date in its fiscal and social obligations (verifiable information on the public registers). Commission set at an unbeatable 7%, well below the market. Your services are immediately paid on your offshore account.

If your market is a country with high taxation and you buy your products internationally, the offshore company can be useful.

Let’s consider the example of an Importer

Take the country A that the corporate tax rate is 30 %.

The importer is installed in this country A and sells its imported goods in the local market.

The Importer purchases a product for 1 euro in country B. He has 1 extra euro in importation costs till country A and selling operation. The product therefore has a final cost of 2 euros.

He sells this product 10 euros on its local market in country A. He makes a profit of 8 euros per product.

He will pay a tax of 30% on the 8 euros of profits, that is 2.40 euros and have a net profit of 5.60 euros that could be distributed as a dividend (on which there is still a personal taxation).

Using an offshore company, the Importer still buys its product 1 euro in the country B. The offshore company then resells it at the price of 8 euros to his company in country A. To simplify, we keep the import fees and selling operation charges at 1 euro. Thus , the product has a final cost of 8 + 1 = 9 euros for the company in country A.

By reselling 10 euros, he will make a profit of 1 euro on which there will be a tax of 30%, that is 30 cents.
On the other hand, the offshore company will retain a benefit of 8-1 = 7 euros, on which no tax will apply.

Nota 1: If the importer sells 100,000 units of the product, equal to a 1 million euros of turnover,… make the calculation…

Nota 2: This is a simplistic example to highlight the concept. We have to adapt to each situation with regard to the purchase price, resale, level of taxation… The concept will be anyway still the same.

Nota 3: The same concept applies for the exporter, which produces/buys for 1 euro in his country with high taxation, and sells for 10 euros abroad.

Many E-commerce websites are now settled in offshore countries or partly organized in offshore. This is valid both for websites selling digital or immaterial products, and physical goods. Products and services being sold all over the world, website owners prefer to install their company in a centre where taxation is advantageous.

Also, in today’s world, it becomes practical to use a bunch of service providers to assume functions such as logistics, payment collection, technical and commercial support etc…

We can help you effectively organize your business and save money by avoiding the bad business decisions, mainly due to ignorance or inexperience. Please contact us to set a consulting business mission.

One of the most common uses of offshore companies is the Holding company.

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NICE SELLING BUT DECEPTIVE ARGUMENTS!

We decided to post this information here in order to protect project holders willing to create an offshore company against some circulating information.

No! International banks such as HSBC, Standard Chartered Bank, Barclays, Citibank, … do not provide bank account opening services in Dubai for offshore companies.

In Dubai, no bank opens offshore company bank accounts in 24 – 48 hours! Banks have a normal process that takes a few days (usually 5-7 working days) and this applies to all.

In Dubai, all banks are obliged to see clients in person! Your physical presence is required for the signature of the bank account opening documents and submission of your valid passport.

No, the “Nominees” services are not possible in Dubai. Those kinds of contracts are not legal and not recognized by the Courts of Justice in the UAE. The ultimate beneficiary of the company and its bank accounts will always be the one named in the memorandum.

Subscribing to such a service just amounts to giving your assets to a third person, who is the legal owner. And no any signed contract or agreement will protect your interest in this situation.

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YOU NEED HELP? WE ARE AT YOUR SERVICE

We are based in the UAE and we manage your files directly without intermediaries!

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