The UAE has a long history of hosting foreign companies, particularly in the financial services sector. The country boasts a highly experienced and qualified workforce which helps attract an abundance of international business. But this isn’t all about business and money. There are many myths about offshore company formation in the UAE that you must understand before starting your company.
Offshore company formation in the UAE is a popular choice, however, this can also be a nightmare for newbies. The confusion created by myths and misunderstandings about offshore company formation can often prevent people from starting their own businesses. In this article, we’ll clarify some of the common myths and misconceptions about Offshore Company Formation in UAE.
Myth 1: The government of the UAE will not allow you to form an offshore company unless you have a specific reason for it.
Fact: There are no specific laws that would prevent you from forming an offshore company. However, there are rules that must be followed. For example, the government requires that you obtain permission from the Ministry of Finance before creating a company in the country.
Myth 2: Offshore company formation in the UAE is not subject to tax laws.
Fact: This is not true. All companies in the UAE are required to file an annual financial report with the Federal Tax Authority (FTA). The FTA has a team of auditors that can visit your premises at any time and inspect your books and records. If they find any discrepancies, they will investigate further and may even refer you to authorities for prosecution.
Myth 3: You can use the Cayman Islands or other offshore jurisdictions as an offshore place for your business operations.
Fact: This is not true, either. If you try to do this, you will be breaking UAE laws and may face criminal charges if found out by law enforcement officials (or worse!).
Myth 4: Setting up an offshore company in the UAE is illegitimate or will attract additional risk factors.
Fact: This myth is false. Offshore companies are an entirely legitimate way to conduct business, provided that they are legally set up according to UAE law.
Myth 5: Setting up an offshore company in the UAE is expensive and will cost a lot of money.
Fact: This myth does not stand up to scrutiny as there are many different ways to set up an offshore company, many of which are substantially cheaper than others. In fact, some of these methods have no cost at all!
Myth 6: No Governance of Law
Fact: The laws governing business operations in the UAE are fairly straightforward: You must pay taxes on income from every source of income within your country’s borders; you must also include all necessary expenses for doing business within those borders, and you must file tax returns each year.
Myth 7: Offshore Companies Involve Incorporating Businesses in Remote Places
Fact: Incorporating a company in the UAE is different from other places, mainly because of the government regulations that come with it. For example, if you want to incorporate a business in another country, you will need to get approval from your country’s government. However, this is not required when doing so in the United Arab Emirates (UAE). Also, since the UAE has been successful with offshore businesses and has been able to keep them running smoothly, there are no laws or regulations that would prevent offshore companies from operating here.
Myth 8: Offshore companies are only for the wealthy
Fact: Not true! In fact, offshore companies are now being used by all kinds of people: from small-time entrepreneurs who want to start their own businesses to seasoned professionals seeking a more cost-effective way of starting a company than through their home country’s laws, and even those looking for tax benefits.
Myth 9: Offshore business formation is a trend that’s going to pass
Fact: Not true! The UAE has been an offshore business haven for decades, and it continues to grow in popularity.
Myth 10: Offshore companies are only used by international investors
Fact: This myth also ignores the fact that many businesses have been established in the UAE with an international presence, such as Emirates Global Logistics (EGL).
Start Your Offshore Business in the UAE
The UAE is a popular destination for offshore businesses. It is home to some of the most forward-thinking companies, and they are looking for new ways to grow their business. This is why the country has become a major hotspot for offshore firms.
Read More: Myths About Business Setup in UAE
You can start your own offshoring business in the UAE by finding an office space that matches your needs and moving into it. You will need a company name and registration documents before you can open your doors, so be sure to get those things sorted out before setting up a business in UAE!
There are many benefits to starting an offshore business in the UAE, including lower taxes and less government interference than if you were based onshore. You will also have access to experts who can help with any issues that arise during your time there.
For All Your Needs in Offshore Business, Choose AIG Corporate Services Provider
Offshore companies are never easy to set up, but thanks to AIG Corporate Services Provider, it’s easier than ever. Whether you’re looking for assistance with your business plan or just need a little advice on where to start, we’re here to help.
With our expertise in offshore business and our connections within the industry, we can help you navigate through the murky waters of international tax law and regulations so that you can get your business off the ground without having to deal with any hassles.
We know how important it is for offshore businesses to grow, flourish and succeed beyond local borders and we want to be there every step of the way.
