OFFSHORE INCORPORATION
Ashraf M.Rahman Consultant, DBA Advisors
Offshore Incorporation
What is a Tax Free Jurisdiction
What is an Offshore Company
Why Incorporate an Offshore Company
Major Offshore Jurisdictions / Locations
Offshore Incorporation
What is a Tax Free Jurisdiction
What is an Offshore Company
Why Incorporate an Offshore Company
Major Offshore Jurisdictions / Locations
What is a Tax Free Jurisdiction?
50 years ago special legal financial system created by Monaco, Luxembourg, Liechtenstein, Panama, Hong Kong and Switzerland. BVI joined. Allows wealthy individuals to move their wealth, or at least part of it, out-with their home country where they were being taxed. The wealthy benefited from low taxes and financial privacy. Nowadays, anyone can use and benefit from this system. The term ‘offshore’ is now recognized widely in most sectors of the economy. Companies and individuals take advantage of the seclusion of wealth. Very low or no tax burdens are levied. International business can be less complicated allowing profitability to increase.
Offshore Incorporation
What is a Tax Free Jurisdiction
What is an Offshore Company
Why Incorporate an Offshore Company
Major Offshore Jurisdictions / Locations
What is an Offshore Company?
It is a company which does not conduct substantial business in its country of incorporation. It is formulated in a tax free jurisdiction. It legally minimizes any type of tax burdens. It improves one's wealth management.
Offshore Incorporation
What is a Tax Free Jurisdiction
What is an Offshore Company
Why Incorporate an Offshore Company
Major Offshore Jurisdictions / Locations
Why Offshore?
Large numbers of High Net worth Individuals and corporations are taking steps to incorporate overseas.
Away from the area of their main business transactions.
Why Offshore? To Save Tax Greater ease of Operation
5 MAIN REASONS
A higher level of anonymity
Favorable local legislation relating to reporting
For offshore asset protection
Why Offshore? To Save Tax Greater ease of Operation
MAIN REASONS
A higher level of anonymity
Favorable local legislation relating to reporting
For offshore asset protection
To Save Tax
An offshore company can form part of an overall taxation reduction strategy for certain individuals or entities. Combined with an offshore bank account or trust, for example, an offshore company can save an individual or company tax. If an offshore company is set up in a low/no tax area then profits can be realized in a tax efficient way increasing profitability.
Why Offshore? To Save Tax Greater ease of Operation
MAIN REASONS
A higher level of anonymity
Favorable local legislation relating to reporting
For offshore asset protection
Favorable Local Legislation Relating to Reporting The amount of company information and accounting data that needs to be submitted and held on file is far reduced in the majority of offshore centers which goes hand in hand making an offshore company that much easier to manage and run.
THE 5 MAIN REASONS To Save Tax Greater ease of Operation
MAIN REASONS
A higher level of anonymity
Favorable local legislation relating to reporting
For offshore asset protection
Offshore Asset Protection
An offshore company is the perfect entity for enabling individuals to achieve asset protection offshore.
Assets can be owned by the company rather than directly by an individual, and the company can be placed in trust, for example.
Why Offshore? To Save Tax Greater ease of Operation
MAIN REASONS
A higher level of anonymity
Favorable local legislation relating to reporting
For offshore asset protection
Achieve a higher level of anonymity
A number of overseas centers offer the option of having nominee directors for the establishment of a company. Others also keep the names of Directors and Shareholders off public record. Those who transact through such a company can keep their affairs private.
Why Offshore? To Save Tax Greater ease of Operation
MAIN REASONS
A higher level of anonymity
Favorable local legislation relating to reporting
For offshore asset protection
Greater Ease of Operation
Many locally incorporated offshore centers make it very easy for companies to trade. Offshore companies cannot carry out any transactions locally if they are involved in the banking or financial sectors, for example. The banking and financial sectors require specific licenses and much greater regulation. An offshore company can be far easier to manage than an onshore one.
Offshore Incorporation
What is a Tax Free Jurisdiction
What is an Offshore Company
Why Incorporate an Offshore Company
Major Offshore Jurisdictions / Locations
Offshore Jurisdictions (Total 25) • Andorra
• Anguilla • The Bahamas • Barbados • Belize • Bermuda • The British Virgin Islands (BVI) • The Cayman Islands • The Cook Islands • Costa Rica • Cyprus • Dubai • Eastern Europe • Gibraltar • Guernsey/Jersey • Hong Kong • Ireland • Isle of Man • Liechtenstein • Malta • Monaco • Panama • Singapore • St Kitts and Nevis • Switzerland • Turks and Caicos Islands (TCI)
Offshore Locations
6
Switzerland
7
5
1
Cyprus
3
Dubai D b
2
4
Features & Incorporation Cost
BVI (British Virgin Islands)
SEYCHELLES
DUBAI (JAFZA Offshore)
BVI (British Virgin Islands)
Features of the BVI(British Virgin Islands) ¾
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One of the largest incorporators of offshore companies worldwide. BVI legislation is recognized around the world. Low formation and annual maintenance fees. BVI Authorities do not impose tax on profits. Minimum requirement of one Shareholder. Minimum requirement of one Director. No obligation to appoint a Company Secretary. No information required by the BVI Authorities prior to incorporation. Shareholder and director details are not listed in any public register in the BVI and are not given to the BVI Authorities. No requirement to file annual accounts or tax returns in the BVI.
Cost of Incorporation 1st Year Fees & Incorporation 2nd Year onwards Notarisation & Apostille in BVI
US$ 780
Attestation @ British Embassy, Dubai
US$ 51 for 1 set of 4 documents
US$ 610 US$ 400 for 1 set of 4 documents (incl courier)
Legalisation @ Ministry of Foreign US$ 1,160 - US$ 2,275 (depends on which officer) Affairs, Dubai
Total
US$ 2,400 - US$ 3,510
SEYCHELLES
Features of the Seychelles ¾ ¾
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Low formation and annual maintenance fees. Seychelles Authorities do not impose tax on profits. Minimum requirement of one Shareholder. Minimum requirement of one Director. No obligation to appoint a Company Secretary. Shareholder and director details are not listed in any public register in the Seychelles , and are not given to the Seychelles Authorities. No requirement to file annual accounts or tax
Cost of Incorporation 1st Year Fees & Incorporation 2nd Year onwards Notarisation & Apostille Attestation @ Seychelles Emb, London Legalisation @ UAE Emb, London
Total
US$ 550 US$ 400 US$ 380 per document (incl courier) US$80-160 per document (depends on document) US$33-655 per document (depends on document & officer) US$3,500 - 4,000
DUBAI (JAFZA Offshore)
Incorporation of Offshore Company in Jafza
Registered Agent
Restricted Activities
Features of the Dubai Offshore
Permitted Activities
Registered Agent
Registered Agent
An offshore company shall have a registered agent located in the Free Zone or in Dubai and their address can be used as registered office. No Entity shall be a registered agent unless they have been approved as such by the Authority. DBA (Paralegal Service International) are registered agents for Dubai Jafza Offshore. The Registrar shall maintain a register of approved registered agents. An offshore company can notify the Registrar of any change in the name or address of the registered agent. Any change in offshore company details shall be notified immediately by the registered agent to the Registrar.
Features of the Dubai Offshore
Features of Dubai (JAFZA Offshore)
Minimum two Directors and a Secretary. Address of the company is that of the agent. The name of the company must end with the word “Limited”. No physical presence of the owner, if a POA has been obtained. No restriction on share capital. Registration through authorized agents.
Permitted Activities
Permitted Activities
Deal in properties of Dubai World, Dubai Holdings, Emaar & Nakheel and any other developers approved by the authority. Own property outside UAE. Investment in Companies, Factories and Establishments. To deal in the International General Trading of Goods however without entering into partnership with any UAE resident. If the Company wishes to conduct trade or other business in any UAE Free Zone or elsewhere in the United Arab Emirates, it must obtain the appropriate license to conduct the trade.
Restricted Activities
Restricted Activities
Cannot carry on banking business.
Cannot carry on business as an insurance or re-insurance company, insurance agent or insurance broker.
Cannot carry on business with persons resident in the United Arab Emirates.
Cost of Incorporation Government Fee – 1st Year
AED 10,100/-
Government Fee – 2nd Year & Onwards
AED 2,500/-
DOCUMENTS REQUIRED FOR INCORPORATION INDIVIDUAL APPLICANT
NON-INDIVIDUAL APPLICATION
Proof of residence (Utility Bill etc.)
Applicant’s personal profile (short C.V.)
INDIVIDUAL APPLICANT
Bank Reference Letter
Passport Copy
Certificate of registration of the company
Board resolution for the establishment of offshore co.
NONINDIVIDUAL APPLICATION
Memorandum & Article of Association
Certificate of good standing of the co.
CONCLUSION offshore company provides confidentiality over
financial affairs and allows wealth growth without intrusion. Preferred structure to achieve anonymity and
privacy. Limited liability. Eliminate or minimization of capital gains. Accounting or auditing not mandatory.
Quiz 1 Offshore Jurisdictions in the World ? a. b. c. d. e.
Paris Abu Dhabi California All of the above None of the above
Answer: e. None of the above
Quiz 2 The five main reasons why anyone would consider establishing a offshore company ? a. b. c. d. e.
Greater ease of operation Offshore asset protection To save tax All of the above None of the above
Answer: d. All of the above
Quiz 3 How many Directors are required for the Incorporation of a SEYCHELLES and BVI offshore company? a. b. c. d.
None One Two Three
Answer: b. One
Quiz 4 How many Directors are required for the Incorporation of a Dubai JAFZA offshore company? a. b. c. d.
None One Two Three
Answer: c. Two
Thank you
