Offshore Company Formation

Presented by

Rizwan Anjum
Vice president Offshore services

Agenda
Defining Offshore Advantages

Why Incorporate an Offshore company

Uses of an Offshore. Why Choose Emirates Why ADAM Offshore Tentative Setup costs

Documents and Requirements for Setup.

Question & Answer Session

What is an Offshore Company?

A company which is incorporated in an Offshore Financial Centre (Offshore Jurisdiction)

Must be incorporated under Offshore Company Laws and regulations of offshore jurisdictions Must be incorporated by non-residents of offshore jurisdictions Must not trade within the offshore jurisdictions;

An offshore company may enter into contracts, open bank accounts, purchase and sell various products and services, own property. A typical offshore entity, also known as an International business company (or an offshore IBC) does not pay taxes in its home jurisdiction.

Advantages

Tax Optimization Anonymity & Confidentiality Asset Protection

Cost of Operation
Simplicity & Reporting

Why incorporate offshore?

Low Taxation

Most offshore companies pay no taxes on the income derived from offshore operations, i.e. from activities outside of the jurisdiction of company formation. These offshore companies include Belize IBC, Seychelles IBC, BVI BC, RAK IC , RAKIA and others.

Asset Protection Placing your personal assets into a separate legal entity is generally a good idea whether you place them in a traditional company within your home country or you place them in an offshore company. Of course, offshore companies and assets are much more difficult to locate and can provide protection against frivolous litigation suits.

Legal Protection

Offshore company formation provides an additional layer of legal protection by removing your name from your assets. Lawyers typically perform a preliminary search to locate assets that may be tapped in the case of a winning judgment. Utilizing offshore companies by titling assets and transferring them to your offshore company can be a valuable tool in deterring these lawyers; preventing lawsuits and potential adverse judgments

Privacy/Anonymity
Utilizing an offshore entity to conduct your business, bank transactions and/or personal financial investments provides additional privacy and anonymity. In many jurisdictions, the company officers, shareholders and beneficial owners can either be omitted from the incorporating documents and/or are not on any public record at all

Simplicity
One often overlooked aspect of offshore company incorporation is the relative simplicity of the process. Offshore company formation in many jurisdictions is a quick and seamless process and Sterling Offshore aims to make your offshore incorporation as simple as possible. Additionally, ongoing requirements for offshore companies are often more relaxed than for "onshore" companies.

Ease of Reporting
The compliance reporting requirements for offshore companies are limited, especially in comparison to companies, registered in onshore jurisdictions. Most offshore IBC companies are not required to file annual reports and accounts in the jurisdiction of the company formation. Instead, local authorities charge a flat annual license fee, which is insignificant in comparison to reporting expenses and taxes in onshore jurisdictions.

Operating Costs and Fees

With limited reporting requirements, offshore companies generally have lower maintenance and operating fees. The cost of compliance, preparation of accounts and auditing in on-shore countries is often considerable while offshore companies save on these particular expenses.

Uses of An Offshore
International Trading

Professional Services
Property Owning Companies Investment Companies Copyrights, Trademarks and Patents Holding Companies

International Trading

An importing or exporting company might establish itself in an offshore area. The offshore company would take orders directly from the customer, but have the goods delivered directly to that customer from the manufacturer or place of purchase. The profits arising out of the difference between purchase price and sales price would then be accumulated in Offshore companys bank account.

Professional Services

You can also carry on your consultancy or counseling business through an offshore company. You will find it easier to manage your company and will have reduced or even zero taxation depending on the jurisdiction in question.

Property Owning Companies

There are a number of good reasons why the use of offshore companies has become so popular when buying property in Dubai. The most obvious reason would be the avoidance of complicated inheritance procedures. A company does not die. If your property is held in a low-cost offshore company, you (and your partner or partners) can own the shares of it as you see fit. So rather than have your individual names on the title of the property, you have a company name. In case of any uncertainty/unforeseen, all of your property and bank account will be frozen until a sharia court order is issued by the local courts. As a UAE property investor, we do recommend to buy the property OR investing in any Company under the name of an off-shore company. so if in case your family will not be suffering. When the owner sells the property; a certain percentage of its value may charged by the authority. The transfer fee can be easily avoided by selling the Company itself.

Investment Companies

People who want to invest their money in different projects and they dont want to disclose to someone can incorporate an offshore entity and then this offshore can invest as a corporate investor in different project. An offshore company can hold the shares of other companies.

Copyrights, Trademarks and Patents

Any kind of intellectual property right (a copyright or trade mark) may be registered in the name of an offshore company. The company may also buy or sell this type of rights.

Why Choose Emirates

There is a very significant difference between the safe haven of The Emirates and other worldwide tax shelters. The Emirates and other GCC countries of The Middle East are tax free jurisdictions by nature and not by design. So what does this mean? The Emirates, in its very nature, has always been a tax free country; A jurisdiction that: NO Corporation Tax NO Capital Gains Tax NO VAT (Value Added Tax) NO Personal Tax NO Death Duty Tax In short; it is, and has always been, a country WITHOUT Tax!!

Why ADAM Offshore?

Ensure Privacy
Hassle-free incorporation

Competitive Rates
ISO Certified Experienced Team

Cost to Set up
Description Incorporation Fee including Registered Agent Fee US$ Annual Renewal US$ Minimum Directors Required Physical Presence Required to Incorporate the company Offshore Jurisdictions in UAE JAFZA DUBAI RAK FTZ US$ 10,000.00 US$ 3,500.00 RAKIA US$ 4,000.00

US$ 5,000.00 02

US$ 2,500.00 01 UAE entry stamp required alternatively you can sign the MOA in front of Notary Public Court in your home country NO 05 working days

US$ 2,500.00 01

Shareholder & Director Physical presence is required

Not required

Own Free Hold Properties in Dubai Processing Time

YES 05 working days

NO 05 working days

STANDARD LEGAL REQUIREMENTS & SUPPORTING DOCUMENTS:

1)

INDIVIDUAL SHAREHOLDER(S) Up to date clear Passport Copy UAE entry stamp page. Proof of Residence Utility Bill, Telephone Bill, C.V. (Resume) Most up to date Bank Reference Letter

2) MULTIPLE SHAREHOLDER(S) The same is required as above. Every Shareholder and Director must provide the abov mentioned documents 3) CORPORATE SHAREHOLDER(S) Certificate of Incorporation of the existing company [notarized and attested/ apostilled] Certificate of Good Standing of the existing company [notarized and attested/ apostilled] Memorandum and Articles of Association [notarized and attested/ apostilled] Board Resolution Calling for the establishment of an IBC or Offshore formation [notarized and attested/ apostilled] Power of Attorney [notarized and attested/ apostilled]