WHAT IS AN OFFSHORE COMPANY
- Offshore companies are companies that are incorporated in a jurisdiction different from the one where it carries out its business activities or companies incorporated in offshore financial centers. Offshore companies are sometimes referred to as a tax haven. This is because they are setup in a country country which exempts foreign investors from tax on having bank accounts or companies set up in its territory. These offshore companies are also termed as Non-Resident companies as they make no economic or commercial activity These companies are controlled by foreign enterprises or individuals that conduct their business in other parts of the world and using the tax haven only as a legal address of the company.
- In other words, offshore companies are described as companies that conduct an insubstantial or zero volume of business within their jurisdiction of incorporation. The offshore company also known as International Business Company (IBC) registry allows foreign investors to register offshore companies under any offshore authority through registered agent, work as a division of investment authority without the need to establish a physical presence in that country. An offshore company has a restriction to do business inside the country where it is formed. It also works as a virtual company; you can open bank account and operate international business.
- We provide consultancy and PRO services to form offshore company. We actively perform all documentation and processes of all departments including preparing MOA, Application form and document submission. We assist you to open a bank account within UAE.
Isn’t it illegal to move assets offshore or have ‘offshore bank accounts’?
There is nothing illegal about transferring assets and funds offshore. It is everyone’s right to minimize personal or corporate tax bills in own country or residence or origin. You might be breaking the law by not disclosing the information to your tax authorities when you do not declare assets or profits that should be declared according to your domestic tax code, and in this case you may be subject to certain penalties and fines or even more. The key element is if your assets and profits are ‘reportable items’ and when they must be reported. Using offshore structure properly is one of the legitimate and reliable methods to reduce your tax burden. Furthermore, its 100% legal to setup your offshore company in UAE through Ajman Free zone Authority. As a registered agent of Ajman Free zone Authority we will help you in all legal documentation to setup your offshore company in Ajman free zone Authority, in only 1 day.
When and for whom the offshore company formation is beneficial?
- For those, who want to legally do business internationally; for example trading online and selling products on Amazon, Ebay etc. & want to have business account in order to receive payments legally without paying any taxes.
- For those, who want to create an offshore company to act as a holding company of the existing or proposed entity, owned by them
- For those, who have lots of companies in other jurisdictions around the world, it is beneficial to create a holding company as an offshore company thereby saving or minimizing the taxes
- It is advantageous to open an offshore company for those residing in politically or otherwise unstable countries to protect their wealth
- For those, who want to minimize the legal and regulatory requirements
- For those who want to open multi-currency bank accounts in other countries
- For those who want to invest or buy assets/property etc. in another countries
- For those who have privacy issues
- Expatriates working abroad can utilize an offshore company to minimize tax liability in their home countries. The company where they are working can pay his/her salary at a reduced amount as to minimize the tax liability and the balance amount can be paid to the offshore company.
LEGITIMATE USES OF AN OFFSHORE COMPANY
- International Trade – exchange of capital goods and services
- Asset Protection
- Sea Borne Assets Ownership – Such as Yachts, Ships, ROROs etc.
- Tax Planning and re-routing transactions
- Protection of Intellectual Property
- Opening oh Holding companies to consolidate operational powers
- Purchase of other assets such as properties avoid lengthy probate issues and own property and land to avoid capital gains tax.
- Licensing & Franchising
minimum of one shareholder. No Public register of shareholders exists, however the registered agent must retain a shareholders register at the registered office.
A minimum of two directors are required and they cannot be bodies corporate. Register of directors must be held at the registered office but it is not a matter of public record.
No taxes on profits, capital gains.
No annual report or accounts need be filed. Accounts must be audited and accounts must be distributed to shareholders (but NOT filed).
WHY CHOOSE/GO FOR AN AJMAN OFFSHORE COMPANY FORMATION?
- Anonymous and discreet – Ajman Free Zone Authority Offshore has a closed register and does not participate in any information exchange treaties. Outside Governments/authorities aren’t privy to information regarding your company.
- No foreign currency restrictions
- Repatriation of offshore company profits and capital
- Flexibility to own AFZA approved freehold properties while taking advantage of 47 UAE double tax treaties
- Freedom to claim ownership to your patents, trademarks, copyright, and other such intellectual property
- Low Startup Cost as compared to onshore companies
- Speedy Incorporation Process – Company Incorporation Documents can be issued within 1 working day!
- 100% Tax Free – No corporation tax, income tax or VAT
- 100% foreign ownership permitted
- No Paid up Share Capital or Audit requirement
- Globally respected jurisdiction
- Convenient and flexible Bank Account Opening
Benefits of an Offshore Company
- It does not need to have physical offices in the UAE.
- It may not carry on business within the UAE.
- No UAE Residency Visa.
- It may have non UAE resident as director or shareholder.
- It may have UAE resident as director or shareholder with NOC’s if they are employed
- Shareholder/director to be physically present in the UAE for incorporation own real estate in UAE with prior authorization from AFZ and the respective Emirate.
- It may not do banking and insurance business without special license.
- It may maintain bank accounts and deposits in the UAE or worldwide.
- It is not obliged to maintain its books and records.
- It may hold shares in other UAE and worldwide companies.
- It may own yachts registered in the UAE.
- General trading or online selling on Amazon , Ebay etc
- Consulting & Advisory Services
- Holding Company Investments and Joint Investments Company (Buy/Hold/Sell stakes of companies)
- Property owning (Subject to the respective local laws of each Emirate, City and Country)
- International Services
- Professional Services
- Shipping and Ship Management Companies
- Commission Agents Company – Intermediary Brokers (IB’s)
- Movie Production
- Game & Win (Raffle coupons)
- Real Estate Brokerage
- Certificate of Incorporation
- Memorandum of Association
- Articles of Association
- Share Certificates
- List of Directors and Shareholders
- Company Stamp
- All Government and Filing fees
- Provision of Registered agent
- Provision of Registered Office and disbursements
- Provision of Company Secretary and administration services
An offshore company cannot be opened directly with any offshore jurisdictions it has to be done through registered agents and we are proud to be registered agents of Ajman Free Zone Authority
Client approaches Registered Agent Elegant Business Services
2. The Registered Agent
We, as Registered Agent, will prepare all documents and get it signed by client
Certificate of Incorporation & Articles of Association will be issued in 1 day by Ajman Free Zone Authority
Elegant Business Services provides assistance in opening a bank account in UAE. We have great relationship with local banks, we do not charge any additional fee for such services. Banking assistance is complementary from our side.
REQUIRED DOCUMENTS & Payment FOR OPENING OFFSHORE COMPANY
- Passport copy
- Proof of residence – Telephone bill; or – Electricity bill; or – Water bill; or – Bank statement; or – Bank reference letter from your bank showing that you have personal account with this bank mention residence address of residing country. (not older than 3 months,)
- Name of the company (2-3 of your choice)The name of the Company needs to end with the words: – Limited – Corporation – Incorporated – Unlimited – or abbreviated Ltd, Corp, Inc or SA.
- Payment Of AED7500/-to the bank account of ELEGENT BUSINESS MAN SERVICES L.L.C
STEPS FOR FORMATION
Contact us through email or phone for free consultation regarding your offshore business setup in Ajman Free Zone UAE
Provide us required documents and 3 company names for your offshore company. Names should not contain Dubai, Ajman, Forex, Finance, Bank, Insurance, or names of any famous people or country
Once name of your company is approved, you will make payment for offshore registration.
We will email you official application form and Articles of Association. You have to print it, sign and submit original documents at Elegant Business Services.
We will present the documents to the Registrar’s office for verification
We will courier you original Certificate of Incorporation along with Articles of Association and Company Stamp