What is an Offshore Company?
Offshore Incorporation is one of the most modern way of managing business as they offer excellent and tax-efficient strategies for entrepreneurs. This offer opportunities such as freedom of operations, confidentiality and ease of running business.
There are about fifty countries in the world that offers various tax benefits to non-residents, thus promoting offshore business. UAE is one of the well- known jurisdictions in the world for incorporating offshore company. It offers offshore incorporation in Jebel Ali, Ajman, and Ras Al Khaimah.
Tips on how to effectively choose a suitable offshore jurisdiction
There are four main factors to take into consideration to ensure the location chosen serves your company’s best interests before choosing an offshore jurisdiction. These factors are:
INCORPORATION EXPENSES
A good offshore jurisdiction should charge affordable fees for the actual registration and the maintenance costs incurred in running an offshore company. The aim of any business is to optimize its profits by reducing operation costs. Therefore, before setting up an offshore company it is crucial to ascertain the operating costs as compared to onshore registration.
THE POPULARITY AND REPUTATION OF AN OFFSHORE JURISDICTION
When choosing an offshore country, it is necessary to examine which other corporations favor the location. An offshore jurisdiction that is preferred by many other credible and renowned companies is most likely suitable and fits a profitable and legal business criterion. Apart from the popular jurisdictions, there are relatively newer countries such as Anguilla that are feasible offshore destinations. Analyze the reputation of an offshore jurisdiction by examining how other corporations rank a particular jurisdiction.
THE AVERAGE PROCESSING DURATION
Before settling on a particular offshore jurisdiction, it is imperative to find out how much time the registration process takes. It is advisable to settle on an offshore jurisdiction that promptly registers foreign companies. Quick processing time speaks to the effectiveness of the relevant business authority.
AVAILABILITY OF OFFSHORE BANKING FACILITIES
Before settling on a viable offshore destination, it is crucial to familiarize yourself with a country’s banking system. It is recommended that a company chooses an offshore jurisdiction that has a well-developed and highly functioning banking system that offers much-needed facilities such as; online banking, brokerage facilities, offshore credit cards, offshore debit cards and merchant accounts.