A Dubai offshore formation used to only be available to the rich and famous. Now, incorporations can be chosen by any company that is interested in doing so. Here are some of the many benefits of incorporating an offshore company in this tax haven:
Some tax havens expect offshore companies to have people from the local area on their board of directors. Shareholders are also expected to originate from the country which an offshore company is incorporated in. In Dubai, offshore companies can be owned entirely by foreign investors. As a result, a shareholder doesn’t have to be found that is from Dubai because they can have any nationality.
No Accounting is Required
Keeping a company’s accounts up-to-date can take a while. When accounts are not updated, a lot of time might be spent on doing so. The reason why accounts are modified is largely because they have to be submitted to the relevant tax authorities. Although offshore companies are expected to keep an accurate record of their income, they don’t have to be submitted to the Dubai government.
A 0% rate of tax has to be paid on duties and income. When a company reports huge profits, no tax is deducted. The same applies to personal income. If an offshore company will hire many people from the country which its head office is in, employees can keep all of their income. Even when a huge salary is paid where a vast percentage is deducted as tax, this doesn’t happen in Dubai.
Privacy is Guaranteed
The names of directors and shareholders at a Dubai offshore formation is never made public. If a director doesn’t want their association with an offshore site to be known, they should choose one in Dubai. As a result, more shareholders might want to invest in it. This is because evidence of their capital cannot be found as it isn’t detailed on a public record.
Strong Banking System
The banking system in Dubai is highly respected around the world. Some countries have been criticised for their banking system because it does not protect companies and investors alike. However, the banking system in this jurisdiction is very secure and confidential because there is no chance of an account being accessed.
Information about Senior Employees won’t be Shared
Some tax havens have agreed to share information about offshore companies with other countries that aren’t classified as such. The Dubai government is an exception because it won’t be doing so and there are no plans to reverse this decision. When investors want to choose a jurisdiction that will guarantee their privacy and won’t disclose information about their asset, pick an IBC in Dubai.