An Offshore Formation can Help your Company’s Finances
A tax haven continues to be very popular with companies around the world. There are plenty of tax havens which an offshore site can be formed at. In Dubai, thousands of new offshore sites are set up every year in this jurisdiction. Not only is the process behind doing so very easy but it is also financially beneficial and here is why:
Profits aren’t taxed
It doesn’t matter how high company profits are because they aren’t taxed in this jurisdiction. In some countries, such as the UK, a high rate of Corporation Tax normally applies. This money could otherwise be used for buying equipment or a deposit for new commercial premises. When a company reports profits of any kind, no tax is deducted.
It can cost a lot of money to prepare a company for an audit or hiring an accountant to maintain accounts. Although it is expected of an offshore company to update its accounts, they don’t have to be submitted on an annual basis. Consequently, a company could update their own records without having to hire an accountant. As a Dubai company formation isn’t audited, no time and expense is spent on preparing it for an annual check.
Dubai is a city in the United Arab Emirates (UAE). In the UAE, there are no limits as to how many shareholders can be at an offshore site. If an offshore company wants to attract a lot of investment, they can when it is set up in Dubai. As information about shareholders, as well as directors, is never made public, there can be significant interest in an offshore site.
Close to leading markets
If a company is currently based in a country which is a considerable distance away from China and India, it can cost a lot of money to export goods to these nations. As Dubai is closer to these particular markets, it won’t take as long to export goods. It doesn’t cost a huge sum either. Thanks to a Dubai company formation, the cost of exporting many goods around the world is minimal. As low export charges apply in Dubai, a company can save itself a small fortune which can be invested elsewhere.
Zero tax on personal income
Dubai is a very attractive place for workers. An offshore company in this jurisdiction can hire workers from the country which their head office is in and their salary won’t be subject to income tax. As a result, a lower wage package could be given which is the same as what would be paid after income tax is deducted. An offshore company could even hire more people because it can afford to do so due to the fact that its wage bill is lower.