While establishing an offshore company setup in Dubai is booming, most small entrepreneurs still hesitate to invest. The reason? It's because of Dubai's appalling taxes. We all know that taxes help Dubai’s economy to flourish; causing the Emirate to build world-class facilities and business hubs to its citizens. But for a small, starting entrepreneur, these taxes cost a heavy burden on them. How can you lower your taxes without breaking Dubai’s law while still enjoying its stunning benefits? Let’s read and find out.
Offshore Company Setup in Dubai For Small Businesses
1. Get Lower Tax Rates or A Tax Exemption
Some offshore company setup in Dubai is actually business-friendly. Not only do they provide an easy and accessible way to set up businesses in Dubai, but they also offer lower corporate tax rates. It’s even better if your company mainly operates overseas. Why?
Because it means you can apply for tax exemptions. However, you may have to set up more than one company (one in Dubai and one overseas) to make this scheme work. In this way, you get to operate a business legally in Dubai without paying for corporate taxes since you’re not doing business in its jurisdiction physically.
2. Avail Reputational Benefits From Your Main Company
If you have a main company set up overseas, it's basically an international business. Depending on your business' nature, having a US or overseas address attached to your offshore company setup in Dubai actually helps in boosting your application. It also tells the government that your business reputation is great. It helps not only in negotiating your corporate tax rates but also in increasing your approval chances. This especially works for small online businesses with no physical headquarters worth bragging.
3. Concealing Your Identity Helps Reduce Paperwork
Most offshore jurisdiction companies don’t need to submit their audited financial reports. This means you also don’t need to build a financial report as an individual to please the tax authority. What you need to work on instead is your international financial report.
Having a business overseas also allows you to conceal your identity as well as your board of directors and stakeholders for whatever reasons you have. You can just appoint a name or member of your company to become your representative in offshore company setup in Dubai.
4. Allows Offshore Overseas Expansion
Another advantage of having an overseas operation is that it lets you expand your business effectively without running into legal troubles. You can meet the legal requirements needed to have an offshore company setup in Dubai while lowering your taxes and operational costs.
For example, if you're planning to invade the EU market, you can avail the Intra-community VAT Number. This allows you to establish a business in the EU region legally. However, you may be required to set up a company physically. European countries like Bulgaria and Cyprus offer the lowest tax rates in the region, with 10% and 12.5%, respectively.
5. Increasing Cash Flow
Of course, lower tax rates (or tax exemptions) means increasing your cash flow. These extra funds can be used to help your business grow not only in Dubai but also overseas.
Now that you know these tricks and stunning benefits, we encourage you to set up an offshore company in Dubai. It’s also possible for small businesses like you to invade the UAE and Dubai markets. Want to skip the hassle and paperwork of establishing an offshore company? Allow us to help you! We offer a one-stop solution to ease your company setup process.