Dubai is without a doubt the most exciting International Finance Centre in the world and although a relative start-up as an offshore tax havens, it’s rapidly become the most dynamic banking and financial hub of the United Arab Emirates (UAE). Dubai has now grown big enough in the global banking scene to earn it’s own acronym, commonly known in the offshore world as DIFC (Dubai International Financial Centre).
DIFC became a competitive offshore banking center by offering an attractive business environment including zero taxes on income and profits from foreign-owned businesses, plus all the important double taxation treaties to entice any global enterprise, especially the multi-national oil companies. However, the key to success as an IFC for Dubai is that they have no restrictions on foreign exchange or profit repatriation and a dollar-denominated trading environment. To avoid unscrupulous operators, money laundering laws are strictly enforced and the financial service sector is strongly regulated.
What makes the DIFC stand apart though is the real estate development. Downtown Dubai world-class, then the bar was raised on luxury properties with developments like Palm Jumeirah, Jumeirah Beach Residences and the awe-inspiring towers along Shaikh Zayed Road. All of the growth in this magnificent desert city is supported by infrastructure and property of the highest standards.
UAE is not defined by DIFC though, there’s allot more to this powerful nation than meets the eye. UAE oil reserves are ranked as the world’s sixth-largest and it possesses one of the most developed economies in West Asia. It is the thirty-fifth-largest economy at market exchange rates, and ranks among the world’s wealthiest nations, as well as being classified as a high-income developing economy by the IMF. View map
Offshore or International Business Company (IBC) Law in the UAE
As a tax haven UAE is very innovative with flexible corporate entities that are hybrid of on-shore and off-shore regulations, plus a thriving industry has developed as a result of Free-Zone authorities in which many of the offshore company entities are not permitted to operate in the on-shore environment, outside of the Free-zone but they can open and operate bank accounts with UAE-based banks. Therefore when registered within the Free Zone and offshore company may enjoy the same benefits as a standard domestic corporation.
Registered within a Free Zone, the Offshore company has several of the benefits of a standard Free-Zone Company and can own investments inside and outside of the UAE (JAFZA) as well as own real estate in Dubai in certain designated areas (which are approved by the Free Zone registrar). Income derived from its investments (including real estate) can be held in the company bank account and repatriated thereafter. Unlike other Free-Zone companies, there is no minimum capital requirements for an Off-Shore company to incorporate.
Key benefits of the Off-Shore Company are:
- Short set-up time
- No currency restrictions
- Strong corporate privacy
- 100% ownership by Expatriates
- All income and profits may be repatriated
- No corporate, personal or capital gains tax
- No requirement for an office in Free-Zone
- Open and operate bank account in the UAE
- Able to own property in Dubai (JAFZA OFFSHORE)
- Can own investments inside and outside of the UAE
- Own Mainland / Free Zone Companies within UAE
A minimum of 1 directors (maximum of 5) are required, Shareholder(s) may be either natural persons or corporate entities, any of which may also be non-resident (expatriates).
For expert advice and local knowledge of the United Arab Emirates contact:
REHAN ABID
Independent Business Consultant (SME) for Adam Holdings
Adam Holdings Headquarters:
Office 2A, Ground Floor, Building No.6
Gold & Diamond Park
PO Box 183827, Dubai, UAE
Phone : +971 4 341 9701 Ext: 157
Mobile: +971 55 4515248
Skype : rehan-abid
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