Published on September 5th, 2013 | by Alice Aires0
5 Benefits Of Having An Offshore Company In Dubai
Dubai is one of the most popular places in the world for holidaymakers because of the year-round sunshine and hot temperatures. This city is also admired by overseas investors and having a company formation in Dubai is what many organisations decide to do every year. Here are some of the benefits of owning an offshore company in Dubai:
Dubai has joined the ranks of the Bahamas, Gibraltar and the Seychelles by becoming a tax haven. No tax is ever applied to profits or salary. If a company reports high profit margins on an annual basis, it will be liable for a substantial tax bill. The opposite applies to an offshore company in Dubai because a tax bill of any kind doesn’t have to be paid. Therefore, the money which would otherwise have to be put aside for a tax bill can be reinvested elsewhere and not on paying the Seychelles government.
When employees are paid a high salary, they will keep all of it. Even if employees have a generous contract, no tax is deducted from their salary. The same logic also applies to dividends. The rate of tax for dividends in many countries is slightly less in comparison to salary. However, the same amount of tax is deducted from salary and dividends because 0% applies in both circumstances.
Personal Information isn’t Shared
Information about directors and shareholders at a Dubai offshore company are never disclosed to a third party. The Dubai government hasn’t signed an agreement with any other nation regarding passing on details about the offshore companies that are registered there. As a result, investors and directors can rest assured that their association with an offshore company won’t be revealed to members of the public or the media, such as a journalist.
Business Meetings can be held Anywhere
A corporate meeting can take place in any country across the world. Although it can be held in Dubai, there are no limitations on where an AGM can occur. If the directors or shareholders at a Dubai offshore company are from various countries, no money has to be spent on travelling costs in order to attend a corporate meeting because it can be done online. A meeting can also take place via a phone conversation.
Only One Director is Initially Required
Several directors don’t have to be in place at an offshore company because only a solitary director is required. In some tax havens, numerous directors are required but this isn’t necessary in Dubai. Therefore, a lot of time won’t be spent on looking for multiple directors because only one individual is needed.
Auditing isn’t Necessary
A company formation in Dubai is never audited. Consequently, the time and expense which accrues with preparing an offshore company for an annual audit isn’t necessary. If corporate accounts aren’t updated or stock levels checked for a while, an offshore company won’t be penalised by an auditor because this individual never carries out this task.
For more advice and guidance on setting up a company in Dubai click here.