Offshore company: why is Dubai so popular?
Are you considering setting up your offshore company and thinking of choosing Dubai? Before starting the process, examine the jurisdiction's advantages to make sure it truly suits your project.
Company in Dubai: numerous tax benefits
If many business leaders choose Dubai in the United Arab Emirates to register their offshore company, it is not surprising: an offshore company in Dubai benefits from significant tax advantages.
In Dubai, there is no wealth tax, corporate tax is low, there are no taxes on profits or capital gains, and there is no withholding tax on distributed dividends.
The main tax elements
Wealth tax
There is no wealth tax.
Benefits and added value
There are no taxes on profits or capital gains.
Dividends
There is also no withholding tax on distributed dividends.
VAT
Since 2018, companies located in the United Arab Emirates have been liable for VAT. Offshore companies are not subject to it.
Business in Dubai: economic, political, and banking stability
Tax benefits are not the only argument in favor of Dubai. The United Arab Emirates also benefit from economic, political, and banking stability.
The economy is growing rapidly and is supported by substantial foreign investment. This real economy distinguishes Dubai from certain jurisdictions traditionally associated with tax havens.
The political situation is also stable compared with other countries in the region.
The banking system: efficient but more demanding
High-performing banks
Banks also perform very well in the United Arab Emirates.
Stricter banking regulations
Opening an offshore bank account in Dubai has become more complicated in recent years.
Solutions outside the UAE may be considered
Assistance can help identify, if necessary, a bank located outside the United Arab Emirates for the offshore company.
Company in Dubai: valued legal flexibility
When an entrepreneur seeks to establish and grow their company, whether offshore or not, it is important to benefit from a flexible legal framework.
For a free-zone company in Dubai, the legal rules are modern yet flexible.
For an offshore company in Dubai, the legal framework is also flexible. The registration process is simple, as the United Arab Emirates aims to facilitate the establishment of companies, whether resident or non-resident.
Do you still have questions about setting up an offshore company in Dubai?
Get support
Merritt supports business leaders with the registration process, choosing a legal structure, and banking issues related to the project.
Where to register your offshore company?
Revisit the reputation, tax, stability, and banking system criteria before choosing the jurisdiction.