Article image: Examples of using offshore and onshore companies in the UAE

Interesting facts:

Since 2004, the UAE has been governed by Sheikh Khalifa – the older son of the state’s founder Zayed Bin Sultan Al Nahyan Full version

Numerous offshore and onshore companies are opened in the UAE every year owing to the fact that the UAE proposes some advantages for carrying on business. Let us consider each type of business activities on the examples.

Examples of offshore companies

It is to be reminded that an offshore is a company that is registered in the UAE by a foreign person, but its activity is carried out on the territory of another country.

One of the examples is an international travel agency. An offshore company purchases travel offers from foreign tour operators in large bulks and sell them in its country. Since it is registered in the UAE, it does not have to pay income taxes. Moreover, there is no doubt about the legality of the activities of such companies as the services are rendered outside the country where the travel offers are sold.

The other example is the import of goods. An offshore company purchases goods in China and sells them in another country at higher rates. For this purpose, two purchase contracts are concluded at different prices.

Clarify the cost of opening company, corporate or personal bank account, obtaining a residence visa, or another question regarding business in Dubai, UAE:

In this case, there are some possible ways to save money:

  • Saving money on income taxation. In this case, the price of the product increases. For example, the goods that are purchased at $200 and sold in the other country $400, get customs clearance at higher cost — $400. The underlying profit remains in an offshore company.
  • Consulting activities — invoices are billed on the part of the offshore company and all the profits are exempted from taxation.
  • Intermediary services — commission fees and rewards are transferred to the account of an offshore company.

Examples of onshore companies

As opposed to the offshore, onshore companies are registered in one of the UAE free trade zones, and their activities are conducted directly on the territory of the UAE. The availability of a special license is one of the main requirements to the onshore companies.

A hair salon in Dubai can serve an example of the UAE onshore company. First of all, you will need to obtain a license to open such. The next step is the selection of premises and personnel and the purchase of equipment and materials. If you plan to open a beauty salon and provide beauty services, please be aware that only qualified doctors with the appropriate qualification are entitled to provide such services.

Please contact us if you need any assistance with opening onshore or offshore companies in the United Arab Emirates. We offer our high-quality services at affordable prices!

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