Article image: Opening an offshore company for implementing investment projects

Interesting facts:

Virtually 60% of the Emirates’ GDP derive from foreign capital investments income. Full version

Implementation of investment projects is a fairly common offshore solution. Its essence lies in the fact that the control over some share of assets is transferred to an offshore company.

Such solution is used by numerous international companies. Opening an offshore with a purpose of implementing investment projects is a straight forward solution due to the variety of its advantages.

Advantages of offshore investing

Opening an offshore company is advantageous primarily due to the regime of simplified taxation. Many offshore jurisdictions offer minimum or even zero tax rates. In the UAE, for example, there are no taxes for offshore companies at all.

Why do offshore jurisdictions simplify taxation? They do it with the purpose of creating a favourable climate for foreign investments. And an inflow of foreign resources, in its turn, stimulates economic growth.

The asset protection guarantee is another significant advantage of registering an offshore with the purpose of implementing an investment project. Transferring assets to other legal entities via companies allows real business owners to protect themselves from possible fees charged by a creditor, lawsuits, economic crises, political upheavals and other troubles.

Confidentiality is another advantage of offshore investing. When opening an offshore company, you can be sure that your personal information and information about your company will not be disclosed to third parties. However, the confidentiality principle does not extend to criminal activities associated with drug trafficking, illegal arms trade, tax evasion, etc.

Offshore areas are known for their high level of provided services, especially in the banking sphere. Offshore banks put all the efforts to create perfect conditions for their customers, and for this purpose create an atmosphere favourable to long-term cooperation and increasing of the amount of deposits.

No less important feature of opening an offshore company for investment purposes is that you obtain access to almost all the financial markets and exchanges of an offshore jurisdiction, including those being inaccessible from your country.

To summarize, we can conclude that opening an offshore company is an easy and well-reasoned solution for investment project implementation. This is the way to obtain guaranteed net profits, financial stability and security.

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