Geographically, Dubai is the largest city in the United Arab Emirates and is located within the Arabian Desert. It is considered as the core business of the Middle East. With a gross domestic product of $ 107.1 billion, the city of Dubai has become one of the most developed economies in the world.
The interview below includes substantial information about business opportunities in Dubai.
Alexandros, we welcome you once again to the Offshore World. It’s a pleasure to have you with us again. We would like to start this interview by asking:
Could you explain to readers of Offshore World what an IBC is?
It’s also a pleasure to be here again. Your website is an informational platform for any individual or organization who wants to structure their wealth and “flag” abroad.
An International Business Company (IBC) is ideal for any type of business that does not require a local office. This includes any passive investment activity, for example, holding shares in local or free zone companies, holding UAE real estate, or trading activities outside the UAE. IBCs may not rent an office or apply for personal visas and are not authorized to deal with partners within the UAE. RAK IBCs have the following interesting features:
- The owner or manager need not visit the UAE personally
- no deposit of capital into a bank account required
- The only public record data is the company name and the date of incorporation.
- no financial statement required
Offshore companies may only be incorporated through a registered and licensed agent.
Features of Dubai Offshore Company Organization
- Minimized Taxes
- Reduced Administration
- Asset Protection
- Low maintenance cost
-What differentiates this structure (IBC) from others (LLC or Normal Company, for example)?
A very good question! Thanks for asking.
I reiterate the main differences that must be noted.
The main difference is that an LLC is allowed to trade within the UAE.
The IBC, on the other hand, cannot.
51% of the shares of an LLC must belong to a UAE citizen (the “local partner”), while IBC shares may be 100% foreign.
In addition, LLC has to present audited financial statements every year, while for IBC this is not required.
LLC must also have a physical facility lease agreement; IBC, on the other hand, does not have to.
An International Business Company (IBC) is ideal for any type of business that does not require a local office.
Why would you recommend Dubai as a place to establish an IBC?
I strongly recommend Dubai and the UAE for establishing an IBC.
The three most important reasons for this are the UAE’s reputation as a jurisdiction, the country’s economic stability, and the ease of doing business with the public and private sector.
First, the UAE’s reputation as a jurisdiction has been solidified by not having been listed as an offshore paradise by European countries, for example, and by no major scandals or tax evasion schemes.
Secondly, the UAE economy is real and has a strong banking, retail and tourism sector. The UAE is a strong economy currently rated A + by Moody’s and Fitch and has a strong positive outlook. The talent and diversity of the UAE workforce must also be complemented. You have a great availability of strong professionals who can handle the challenges of modern day.
Thirdly, the public and private sectors. The public sector in Dubai and the UAE has been exceptionally fast and very efficient for the last 10 years. You can establish your IBC company in a matter of days. You have access to the Common Law Courts that can resolve questions based on Anglo-Saxon Law.
– Is it necessary to create a local office?
It is not necessary to create an office for the IBC. However, an IBC can own properties and real estate worldwide.
What types of business can be conducted through an IBC in Dubai?
Most of my clients use IBC for the following reasons:
- To facilitate world investment and global trade
- Holding companies
- For special purposes – to hold real estate or other assets
- Mixed Company
- Family Office – to facilitate wealth management and asset protection
However, there is no limit to the activities.
– Does this structure (IBC) have any limitations in Dubai?
Currently, the limitations are that you cannot do business within the UAE, offer any resident visas or obtain tax residency certificates for the company and shareholders.
These are the main limitations.
– Finally, why would you recommend setting up an IBC in Dubai?
As I mentioned in the previous questions, the three most important reasons for this would be the UAE’s reputation as a jurisdiction, the country’s economic stability, and the ease of doing business with the public and private sectors.
An added bonus of having an IBC in Dubai is RAK ICC’s WPR Register, as part of a unique partnership with the Dubai International Financial Center (DIFC). Non-Muslims can now register their Testaments to ensure the distribution and appointment of guardianship of the goods exactly according to their wishes. This distributes the assets to the heirs at their own discretion.
If you want to establish an IBC in one of the fastest growing nations in the world, don’t miss the unique opportunity to do business in Dubai.
If you would like to know more about the benefits and requirements for installing your own IBC in Dubai, Contact Us in the Offshore World. We will connect you with the most qualified professionals in the field.