What is the difference between offshore and onshore companies?KWS Admin
The UAE has offshore companies that are operated by businessmen who are not trading in the UAE. However, offshore companies can be used to operate businesses in other countries.
Onshore companies, on the other hand, are able to conduct business of all kinds in the UAE. Rules and regulations are different when it comes to onshore companies, than those for offshore companies.
There are many advantages of establishing offshore companies. The most common reason for creating offshore companies is that foreigners are able to own property in the UAE.
Another advantage for setting up offshore companies is to avoid taxation in the foreigners’ home countries. Low tax rates are applied to offshore companies and foreigners are able to enjoy facilities because of the offshore companies. This also means that there is more cash for the companies to use, which provides them the chance to take advantage of the new growth opportunities that they find.
The companies that want expand business and deal with other countries can establish their set ups in free zone sectors abroad. Through this the actual set up and operations are less expensive and the cost of imports and exports decrease drastically.
Onshore companies, on the other hand, are normal companies that can be setup by those who want to conduct business in the UAE mainland. These companies operate in the same country as they are registered and have to pay the proper tax rates imposed by the government. These companies also require 51% of their shares to be owned by a UAE national.
There are many advantages of setting up an onshore company in UAE. The biggest advantage for the entrepreneurs is that they can easily study the market and its trends before they take actions for their business setup in UAE. Cities like Dubai and Abu Dhabi are growing and the market is expanding, so owners of business setup in UAE in Dubai mainland have enormous opportunities to grow.
Furthermore, offshore companies require visa processing which can be time consuming and expensive. Onshore companies have the advantage of being less expensive as there is no need for visa and residency registration.
The government of UAE supports offshore companies and has designated several different areas as free zones so that different companies can be formed over there and be operated. This will also be advantageous to the government because of higher tax collection and improved business environment.
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In order to set up a free zone company in the UAE, the entrepreneur needs to be aware of the rules and regulations set by the governmental authorities. Furthermore, license and other permissions needed to operate a business setup in Dubai can be a hard to obtain If the entrepreneur is not aware of the processes and the system.
Therefore, KWS Middle East, a consultancy operating in the UAE was set up to help entrepreneurs and businessmen who want to set up new companies and any type of business setup in Dubai. Whether foreigners or local residents, the consultancy helps their clients by providing them support services like visa processing and product registration, among other things, to support company formation Dubai.
With the best team available, KWS Middle East provides help in opening bank accounts, obtaining license and visa. Moreover, the consultancy works closely with government and non-government departments, which speeds up the company formation Dubai.
Talk to us today and we will sort out your problems. Give us a call or shoot us an email right away.