Onshore / Offshore Company Setup
If you have decided to do business in the UAE, with the real office and residency visas in the UAE, then what you need is onshore company. It can be incorporated either in one of the Free Trade Zones, or outside of FTZ. The distinguishing feature of the second type of incorporation of onshore in the UAE (outside FTZs) is that such company's operations can be carried out throughout the whole country. The only restriction in this case is that foreign national’s ownership in business, in specific cases, may not exceed 49%, whereas 51% shall be owned by a citizen of the United Arab Emirates. In practice, this type of onshore company is applied relatively seldom, but if you require such structure, our company is ready to provide you with full range of services. We will assist you with incorporation of a firm with a local agent / partner and will prepare all necessary documents. The onshore companies incorporated in Free Trade Zone are most popular in the UAE. Such companies are deemed resident, while at the same time 100% of such firm may be owned by a foreign citizen. The advantages of such company are as follows:
- 0% tax rate;
- Possibility to prove residency status of the company without tax implications in UAE
- Resident visas can be issued to directors, shareholders and employees. Visas are issued for a period of 3 years, and maximum number of visas depends on the type of company.
- Possibility of hiring employees without paying salary taxes / deductions.
- The current nature of your business and Business expansion plans
- Current capital to invest
- Need for outside investors, or desire to attract investors in the future
- Tax implications of structure
- Personal liability and company risk
- Audits and other requirements to remain compliant locally
- Mixture of Persons and Companies
An Offshore Company or International Business Company (IBC) may be defined as a business vehicle providing organisations and people as individuals with a number of different wide-ranging services and structures centred on non-residents. Such organisations may also benefit from a number of the non-double taxation agreements in place across the world, including those adopted in Austria, Belgium, Canada, China, Egypt, France, Germany, Greece, Italy, Luxembourg and Netherlands. Such organisations are recognised as valuable for various business-related purposes, including acting as holding companies, owning real estate assets and overseas financial assets, ship registration, inheritance planning, special purpose vehicles and tax optimisation. Ajman free zone authority provides an offshore incorporation service with a number of valuable advantages, including confidentiality and privacy (with IBC owners kept confidential in line with the law, this facilitating a highly conducive business environment for not only the individual but also for corporate investors).
Fundamental advantages of offshore company formation in UAE include the following:
- There is no need to visit the UAE in order to complete incorporation
- Capital for investment does not need to be placed in a bank account
- The submission of financial statements is not a requirement.