An offshore company is a company that does not carry any substantial business activities in its country of formation. Literally, the word “offshore” means “beyond anything”, and in this context means a legal form of organization that is outside the jurisdiction of the country, which has no office in its territory, nor is it engaged in business activities in the country. Typically, an offshore company is organized for the purpose of investment, acquisition of equity of third party organizations, financing, registration of patents, purchase of real estate and yachts and tax planning (both personal and corporate).
Mostly one would open an offshore company to secure confidentiality over their financial matters and increase wealth without interruption.
Offshore companies can eliminate or cut down many types of tax payments such as: Capital gains, V.A.T., Death duty, profits on business earnings and property sales.
Amidst the variety of offshore zones, the United Arab Emirates stands out for its impeccable reputation. Thanks to the transparency of the processes of registration and operation, offshore companies in UAE do not raise any concerns of fiscal authorities and international banks.