The Business Setup Options You Can Be Sure of

In times of “jet wash” and “Panama papers” the subject under discussion inevitably ends up falling into the famous accounts or offshore companies. But after all, what is an offshore company?

What is an offshore company?

An offshore company is a company opens in a country considered to be a “tax haven”, which enjoys tax privileges and confidentiality policies different from those of the countries where the funds originated. These countries use such policies to attract investment and foreign capital. In this sense, these characteristics end up attracting hidden money, often from crimes, without proof of certain origin. Thus, offshore companies end up having a bad reputation. For proper Company formation in Dubai  you need to consider the followings.

However, it is possible to create a company of this type that is perfectly legal and in different ways, leaving only the investor to make the necessary declarations to the tax authorities and the Central Bank for amounts above US $ 100 thousand, through the online platform.

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When is it interesting to open an offshore company?

Opening this type of company can be quite attractive, especially for those who live in countries with a high tax burden such as Brazil. Through offshore companies and accounts it is possible to have access to the friendly legislation of these countries, with low taxes for financial operations, payments and receipts in foreign currency with low costs, exemptions, security, confidentiality and easy access to the global financial market. It is also possible to access some types of financing at very low interest rates. For the Jebel Ali Free Zone this is important.

• Another very common use that is made of offshore companies is for the protection of family assets. Formed as holding companies, these companies facilitate the reallocation of family assets through exemptions and low taxes for the purchase and sale of real estate, financial transactions and mainly for the transfer to heirs, since in this type of trust it is possible to nominate final beneficiaries easily, avoiding inheritance problems inherent to countries that do not qualify as tax havens.
• Companies that operate internationally, such as those in foreign trade, can benefit enormously from the use of an offshore.
• With low taxes and the possibility of direct payment and receipt in hard currencies, avoiding conversion and its inherent costs, these differentials can create a great and fundamental competitive advantage for companies that choose to use them. You can also consult with the business setup consultants in dubai for these matters.

Conclusion

In this sense, unlike what the media often makes us believe, it is not a crime to own such a company or bank account. Provided that it is properly declared, it is not only legal, it can often be necessary or even essential.For all those who intend to invest via international companies, especially those located in tax havens, there are some transaction costs to be aware of.If you want to avoid financial problems and comply with the legal framework when making this investment, it is important to understand about these fees. After all, this type of company has a number of advantages, such as little tax bureaucracy and the possibility of receiving in foreign currency, being a good idea for those who want to diversify their applications.That said, let’s get to know a little more about the offshore transaction costs.