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Benefits of establishing a UAE Offshore or International Business Company

UAE Offshore Companies are used for a variety of business purpose ranging from setting up business entities to owning overseas financial and real estate assets, inheritance planning, setting up holding companies and special purpose vehicles, ship registration and tax optimization.

Thanks to the EU Savings Directive of 2003 and recent US-EU initiatives to wipe out tax havens, the UAE became the better place to incorporate offshore companies for various reasons and purposes. UAE looks set to reap the rewards of a recent EU and US ruling under which banks are now forced to reveal information to tax authorities.

Financial institutions in the EU and US are now obliged to either disclose tax and bank information to the relevant tax authority, or charge client a hefty withholding tax.

The new global standard is effective since December 2015

A Group-of-20 nations agreed to implement a global standard for automatically exchanging information between tax authorities, the OECD said.

The endorsement is a step toward putting an end to ‘banking secrecy as we know it’, Pascal Saint-Amans, director of the OECD's centre for tax policy and administration, told reporters the 23rd February 2014 in Sydney, where G-20 finance ministers and central bankers were meeting.

‘A decision on the technology needed and detailed rules on how governments will swap tax data is likely to be made at a G - 20 meeting in September 2014’, he said. The new standard would see countries automatically exchange information gathered from their financial institutions.

Though the new directive specifically affects EU residents, a number of banks in tax havens have also agreed to exchange customer information, including Jersey, Guernsey, the Isle of Man, the Cayman Islands, Switzerland, Liechtenstein, Monaco and San Marino.

The reputation of discretion for some of these countries is being eroded. Since July 1, 2005 in order to keep details of their private, bank customers now have the option of paying a withholding tax, which will be levied directly in the country in which their savings are held. This will be charged at a rate of 15% for the first three years, 20% for the following three years, and 35% from 2011 onwards.

The United Arab Emirates enjoys a reputation as a secure, tax-free jurisdiction for international banking and company incorporation.

With this latest development from Europe and the US, UAE company registration and corporate and personal banking options are becoming even more popular with international businesses and high net worth individuals.

Since the UAE are neither a signatory to the relevant directive, nor agreeing to cooperate with the Organization of Economic Cooperation and Development (OECD), it looks set again even further.

The uniqueness of the UAE as opposed to other financial and offshore centres lies in the following:

•   100 % foreign ownership.

•   Banking Secrecy Guaranteed by Law.

•   No Public Registry.

•   100 exempt from all corporate and income taxes.

•   There are no foreign currency restrictions.

•   Full repatriation of the offshore companies’ profits and capital is allowed.

•   The setting-up costs are less that of an onshore company.

•   There is no onshore office and accordingly, there are no employees and related costs.

•   No share capital is required to set-up an offshore company.

•   The offshore company can act as a Holding.

 

Should you wish to find out more, or proceed with your company structure, do not hesitate to contact me directly so I may advise accordingly.

Best,

Jorge Pabesio

Senior Manager - Europe Emirates Group

Email: This email address is being protected from spambots. You need JavaScript enabled to view it.

Worldwide Offshore – Matching Jurisdictions to Client requirements

There are a lot of offshore jurisdictions in the world that is why it is sometimes complicated to make a choice. Offshore centers offer different types of companies that can be registered.

An offshore company is a company that normally conducts no business within the jurisdiction in which it operates. It is very important when forming an offshore company to carefully choose an offshore center. You must be domiciled outside of the jurisdiction and your company must transact outside of the jurisdiction.  

Offshore companies offer a number of legal and tax benefits, including either very low or 0% taxation in their home jurisdiction, asset protection and confidentiality. Similar to other businesses, offshore companies may enter into contracts, open bank accounts, buy and sell various goods and services and own property.

A typical offshore company is known as an Offshore IBC (international business company).

The OECD – Organization for Economic Co-operation and Development describes a tax haven as a jurisdiction which allows to minimize taxes which would otherwise be paid in a higher tax jurisdiction.

Each offshore financial center carries its own set of advantages and benefits. There are around 50 countries in the world offering tax benefits to offshore businesses. Some of them are very popular and famous for being tax heavens, such as UAE, British Virgin Islands, Seychelles or Belize etc.

There is no one answer to which offshore jurisdiction is the best. It depends on many factors: tax regulations, personal requirements, business purposes etc.

Below are the main criteria you should look at while choosing the ‘’fiscal paradise’’. 

Always make sure to consider the taxes imposed by that jurisdiction and how an offshore business may interact with taxation regulations of your own country. Keep in mind tax treaties so that you can avoid double taxation.

It is important to take into consideration the political and economic stability of the jurisdiction you choose. You need to ensure the security of your assets.

One of the main factors is incorporation costs. Very often people choose jurisdictions for the lower costs. 

Popularity of a jurisdiction is important but no need to forget that there are new jurisdictions out there that offer as good benefits as the popular ones. At the same time reputation shows the quality of corporate laws and business infrastructure, reflects work of government agencies and international banks. 

While identifying the best offshore jurisdiction you should consider processing time to complete the formation of a company and issuing of various corporate documents. Processing times show how effectively the local government agencies and registered agents work. 


It is important to look at offshore banking facilities as well. You want your offshore jurisdiction to have a well- developed banking with all required options (online banking, debit /credit cards etc.)

Choosing the right jurisdiction will help you maximize your profits. While choosing the wrong one can cause some serious financial ramifications. It is advisable to consult an expert. Europe Emirates Group can help you save money and grow your business.

For more information, please contact me via email address below.

Regards,

 

Ina Rachko

Senior Manager

Europe Emirates Group - Dubai

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Wills - Protection for your loved ones

 

UAE succession law impose how an asset is distributed on death. It is not meant to be a scare tactic but it is a fact that whilst living in the UAE, Sharia Law is applied by the Courts of First Instance throughout the Emirates, which means that even if you have an existing Will that has been drawn up properly in your home country or domicile, it may not be accepted here.

Under the UAE Civil Transaction code, it states that inheritance would be decided by the law of the deceased at the time of death, this means that all assets would be distributed according to the law of his/her domicile. However, another article in the same states that those disposing of their real estate located in the UAE would be done as per the law of UAE

Furthermore, the Central Bank has issued regulations requiring all banks to apply Sharia Law. The courts who apply this law, states that "the rules and principles of Islamic law shall be relied upon in the understanding, construction and interpretation of these provisions" to support their contention that distribution of real estate should be subject to Sharia Law. The principles of Islam dictate that assets are distributed as per these principles regardless of what is stated in the will of the deceased, which means that it does not matter what is stated in an Expatriate's will, the courts will apply the Sharia principles of forced heirship.  

It is essential for non-Muslim expatriates to arrange to have a Sharia-protected will in order to financially protect their families in the event of a tragedy. If the husband is killed in an accident the UAE authorities will freeze all his assets held in the UAE such as bank accounts, credit cards, investments and inhibit any sale of property making for a very difficult financial situation for his spouse and children. After a long-drawn process the wife is only entitled to an eighth of the husband’s entire estate. By arranging for an attested will where Europe Emirates Group can assist, you can ensure your estate in the UAE will be fully distributed to your family.

 

Best,

Mohammed

Senior Manager - Europe Emirates Group

Mobile: +971 56 441 2792

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Banking secrecy and confidentiality in UAE

With the onset of the global financial crisis, many governments around the world have been forced to increase spending, in an attempt to prevent the crisis from escalating. At the same time, faced with depleted revenues, they have had to consider tougher measures for collecting taxes in order to balance budgets. With billions of dollars in tax revenue lost annually through tax evasion, and the global economy currently in dire straits, tax havens have increasingly come under fire from governments and anti-poverty campaigners who see them as having contributed to and worsened the current financial crisis, as well as having widened the gap between the rich and poor. Simply put, many believe the days of tax havens are numbered.

In the face of this assault on bank secrecy by foreign revenue authorities, where would authorities, banks and clients in the United Arab Emirates stand under the UAE Law? Are UAE banks and UAE regulators under an obligation to reveal all to foreign authorities? Or do UAE-based clients have any right to protection from unauthorised disclosure of confidential information relating to their bank accounts?

Bank jurisdictions such as Switzerland, Austria and Liechtenstein, which have been long under considerable pressure from different countries and regulatory authorities, are not comparable to the UAE banking system that is remarkably different for the better. The same principle is applicable to the confidentiality of information of the companies’ shareholders in the UAE.

The main characteristics of the UAE in terms of safekeeping the confidentiality of information are the following:

  • Information about UAE companies’ owners is not public and cannot be disclosed as specified on the criminal law which states that ‘any individual who, by reason of his profession, craft, situation or art is entrusted with a secret and who disclosed it in cases other than those permitted by the law, or who uses it for his own advantage or another person’s advantage, all this unless the individual to whom the secret pertains has consented that it be disclosed or used” shall be punishable by “imprisonment for a minimum period of one year” and/or by “a fine of at least twenty thousand Dirhams’.

 

  • The United Arab Emirates do not require any information about the shareholders of companies to be recorded in the central, publicly accessible, companies’ registry.

 

  • The United Arab Emirates do not require balance sheets to be published in the central, publicly accessible, companies’ registry.

 

  • The UAE do not require any information on beneficiary of non-resident company that the company in the UAE makes any payments or transfers to.

 

  • The United Arab Emirates do not support any unlawful avoidance of taxation of income from abroad, since taxes on most of the business activities in fact do not exist for most types of income –from inside the country and from abroad.

 

  • The United Arab Emirates maintain confidentiality policy and comply with compulsory international requirements and standards for conformity with requirements of anti-money laundering policies. This is the key reason why the UAE have never been in the international ‘black list’ of FATF.

 

  • The United Arab Emirates do not participate in agreements for automatic exchange of information between countries.

 

According to the analysis done by Tax Justice Network and Financial Secrecy Index experts, the country was rated as one of the most reliable, in terms of confidentiality, countries in the world. In fact, the UAE is the Switzerland of the Persian Gulf with effective bank services and the high level of confidentiality.

Should wish to find out more or immediately proceed with your personalised structure, do not hesitate to contact me directly at any time.

By Jorge Pabesio

Senior Manager - Europe Emirates Group

Mobile: +971 56 441 2792

Email: This email address is being protected from spambots. You need JavaScript enabled to view it.

 

UAE Offshore – Providing options based on your needs

Many people wish to keep their wealth and income confidential and protected and this is why they choose to open an International Business Company in the UAE (UAE IBC).

The UAE is not a signatory to any treaty of disclosures or information exchange agreements. Dubai has no taxation department and there are no requirements for an audit for tax purposes. You pay no income tax, capital gains tax or any tax on funds transfers you make.

The UAE is a politically stable country so it is not risky to your assets. If you worry that your account can be frozen or your money can be confiscated in other countries - a UAE offshore account is the answer. People want stability and their assets to remain safe which is why they open a UAE IBC with a bank account.

Dubai is one of the most popular tourist destinations in the world. Offshore company registration is not the main business in the UAE unlike in other popular offshore jurisdictions (Belize, Panama, Mauritius). Every year millions of tourists travel here so it should raise no question in your home country why you are visiting Dubai.

You can register a UAE IBC and open its bank account in Dubai. In this way your wealth will be owned not by you but by a company. The fact that you are the owner of this company is 100 % confidential and cannot be disclosed. Your bank account details are not in danger of being revealed.

You can register your offshore company in the UAE in few different locations. The most popular ones are Jebel Ali Offshore in Dubai and Ras Al Khaimah offshore jurisdictions. They are equally confidential and secure. The differences are in costs of registration, permitted activities and documents required. Europe Emirates Group will help to determine the best location for your company depending on your requirements.

Your UAE offshore bank account can hold several currencies jointly (GBP, Euro, USD, AED). You can easily transfer money from one currency to another depending on the market situation in the world. 

A UAE IBC can trade and offer professional services, own investments and act as a holding company. It can own properties and other assets. It gives you a right to do business internationally but not within the UAE.

Having a UAE offshore company with a bank account enables you to transfer money to other countries without problems. You can manage your funds and do investment planning and do not think about costs that you own country may apply.

 

Europe Emirates Group can help you to use this attractive opportunity of creating a tax efficient and secure structure. For more information please do not hesitate contacting me via email below.

 

Regards,

Ina Rachko

Senior Client Relationship Manager

Europe Emirates Group

Email: This email address is being protected from spambots. You need JavaScript enabled to view it.

 

 

Second Citizenship expertise from Europe Emirates Group Dubai

Programs for granting second citizenship and second passport in return for the investments exist in many countries worldwide. The growth in the number of government programs has been significant as they compete to attract significant inward investment from entrepreneurs and investors. Second citizenship thus involves the safekeeping of a second home that can be resorted to for vacation time, safety from political, social or economic instability, and a different way of life.

Expressions of interest come from people of all walks of life – young married couples, single individuals, retirees, professionals, expats, investors and executives who are willing to make the financial contribution required for applying for the economic citizenship and citizenship-by-investment programs that we offer.

Our team at Europe Emirates Group have met with hundreds of successful applicant’s and their families and it is always fascinating to hear of their own personal background and to understand the reasons why they have sought to secure their alternate citizenship.

Their reasons are varied, as are the geographic and includes some of the following:

Independence – The ability to travel or have the option to relocate at any time.

Security – A guarantee of a permanent alternative place to go and a permanent right to reside.

Visa Waivers – Provides access to countries without the need for time consuming visa application processes.

Quality of Life – This can mean different things to different people with climate, personal security, clean environment, healthcare and transport being just some of the determining factors.

Retirement – The freedom to retire in a safe country without worrying about changing immigration laws supports retirement planning

Investment – An alternate citizenship can afford easier access and familiarity with some attractive investment locations and opportunities that may not have been previously considered.

Education – Citizenship of certain countries can provide access to some of the best educational institutions in the world for family members.

Protection – The ability to move freely when some nationals may be exposed to threat, hostility and criminal activity.

Estate Planning – Citizenship can be a determining factor in most double tax treaties.

 

Best,

Mohammed

Senior Client Relationship Manager

Europe Emirates Group

 

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Europe Emirates Group – Our Business Approach

Based in Dubai’s thriving Financial District, and with affiliate offices around the world, Europe Emirates Group offers business incorporation and administration services to companies looking to set up in the United Arab Emirates.

With specialists based both in the UAE and abroad, we have excellent local knowledge of the UAE’s regulatory framework, laws and customs, as well as our keen business acumen that’s allowed us to help set up thousands of companies. With a dedicated specialist serving as single point of contact for each of our clients, we combine personalised customer service with local know how to make our client’s businesses successful.

Providing each client with a consistent person to serve as their primary point of contact, we guide our clients through the often complex processes of incorporation, providing full support in all aspects of company formation, banking and administration. In addition, we specialise in international tax planning, investment holding and trading.

Whether communicating with government officials, or navigating the intricacies of dealing with the various free trade authorities, we have the experience and local expertise to ensure that your business set-up proceeds smoothly and without incident.

At every touch point between our client’s business and the UAE’s regulatory and financial environment, we tailor every recommendation on a case by case basis according to what is going to work for each individual business. Whether it’s on deciding the bank or the type of account, which location or free trade zone authority to work with, which location to use, or how to structure the company; everything that we recommend is specific to what will work for your business.

We pride ourselves on our transparency and affordability, and we provide effective support for companies of all sizes and with a broad range of budgets. No matter what the size of the business, our work is always bespoke.

Should you wish to find out more, do not hesitate to contact me directly so I may advise accordingly. 

Best,

Jorge Pabesio

Senior Client Relationship Manager

Europe Emirates Group

 Email: This email address is being protected from spambots. You need JavaScript enabled to view it.

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