1. Offshore Company
UAE offshore companies registered in UAE are allowed to do international trading and services business outside of UAE and 100% exempt from various taxes such as income tax and inheritance tax.
Offshore companies can establish and transfer a company without complicated procedures and large costs.
Therefore, it performs an excellent function as a holding company with various assets.
The benefits and features for owning an offshore company are as follows:
- Property holding within the UAE
- Various assets, shares and etc.
- Holding Intellectual property rights
- Possible to register as a shareholder of a foundation company
- Low operational cost
- Simple documents required for transfer of company stocks, short transfer period
- Privacy and anonymity
- Asset protection
2. Foundation
Foundations combine characteristics of trusts and corporations where assets are managed by directors (like that of a trustee). Foundations are legal entities with perpetual existence, meaning they can be used for a wide range of investments. Foundations have a great use as a means for private family wealth, offices and succession planning and also offer excellent asset protection
The reasons of set up foundation in UAE as follows:
- Asset Protection
As an independent legal entity, foundations separate individuals from the ownership of assets. This provides protection from creditors and government bodies if the founder gets into financial
difficulties. - Employee Schemes
Foundations can manage employee pension and retirement plans, as well as company share schemes. - Tax-efficient Holdings
Foundations can hold capital income and certain assets. This is tax-efficient, as they are not subject to personal or corporate taxation. - Philanthropy
Founders can set up by-laws to ensure assets are used for charitable purposes. - Wealth Structuring and Inter-Generational Legacy Planning
By-laws can be created to establish how wealth is distributed from one family member to another.