The Benefits of Offshore Company Formation
Often business houses feel the need to expand beyond known territory. Anyone with deep pockets and enough presence in his/her home country, can certainly ponder over the idea of setting up an offshore business. There is plenty to gain for a corporate house, which is ready to take the plunge and move beyond known territory. Let us focus on how a business house can benefit from the situation.
A prime benefit, which a corporate house can look to derive from the situation, is in the form of minimized taxes. One can legally reduce the tax obligations by setting up an offshore business. However, the precise amount of deduction will depend upon the specific country. The confidentiality clause is another reason for business houses tend to venture overseas. In some countries a non-resident company is exempted from disclosing financial information and other details of directors and shareholders. Asset protection is probably another reason why plenty of business houses are venturing overseas. One has come across enough instances, where an offshore company has been able hold real estate investments or even intellectual property for its parent company.
While these are the prime benefits of setting up an offshore company, but to choose the place carefully. People who have set up offshore ventures, say that there can simply be no substitute to a RAK Company in UAE. The term RAK refers to Ras Al Khaimah and the place is a one of the fastest growing free trade zones in the UAE. There are plenty of such zones in close vicinity of Dubai and UAE in general. Let us have a close look at the concept and the gains an entrepreneur can expect, by setting up a business venture within the confines of such zones.
Any UAE or dubai freezone is set up with the intention of allowing tax-free and custom duty benefits to foreign investors. These zones in Dubai or UAE are governed under a special framework or rules and regulation, which are applicable to the concerned zone only. Other than a regular tax exemptions and confidentiality issues, any foreign investor operating within these zones is allowed 100% ownership of the business. The investor can open a bank account in Dubai and can even wind up any point of time.
There are great business opportunities in Dubai, and such free zones presence offer added incentives for investors, who intend to have a business setup in dubai. However, setting up an offshore company in Dubai or probably anywhere is tough. An investor will need to have a proper idea about the company formation rules and regulations of Dubai, or for that matter any country. One may even have to approach the banks or financial institution of Dubai for business loans. This can be tough for someone who is new to the place. People who have set up offshore ventures earlier, will always insist on taking professional help.
Someone who intends to set up offshore venture in Dubai will need to take help from professionals in Dubai, who are willing to help out in offshore company formation. Such professionals are well aware of the rules in Dubai and even have the perfect contacts amidst the banks and financial institutions. They will make sure that the Dubai offshore venture is off to a smooth start.