Maximum people are confused about the free zone and the offshore company when they seek out for data about where to finance in Dubai. This is for the reason of primary similarities between the both that is 100 percent overseas ownership without any local sponsor required. Both this kind of companies also have to be registered and licensed by free zone establishments.

If we talk about taxes, both companies also have the same benefits. They are as follow:

100 percent corporate and personal income tax exemption

100 percent repatriation of profits and capital

100 percent import and export tax exemption

100 percent of foreign company ownership
It is essential for you to know the differences between two companies to make certain that you will have smooth business operations. Both of these companies have dissimilar features. They also differ in term of boundaries and the profits they offer to investors, depending on the type of business activities done.

Free zone Company
The free zone company system is planned to attract the businesses treaty with trade and export. A company is permitted to put up branches in a free zone which will be measured as extensions and not as separate companies. If a company has to establish a branch in the free zone, it has to indicate that it is a solvent-free zone entity. For a business to be registered in a free zone, it is compulsory to follow a preliminary share capital. The requirements vary in every free zone or they may elect to have a virtual office when a full-sized physical-office is not required. There are following commands to follow when conducting business in a free zone:

100 percent overseas ownership

No obligation of 51 percent company ownership of a local sponsor

No taxation

Reasonable workforce and easy requirements

Shareholders and company employees can attain UAE residency visas

No customs duty for both import and export

25 years of lease options, warehousing, and availability of locations for productions and assembly.
Offshore company
An offshore company system, on the other hand, has a multiplicity of features. Even if an offshore company is registered under the construction of a free zone and it deals same benefits and ownership as that of the free zone company, it cannot be measured as a free zone company substitute. The major difference between an offshore and free zone company is obscurity. The details of an offshore company are kept mysterious while free zone information is available when demanded.

An offshore company will be capable to open an account in a bank based in the UAE. It is also permitted to invest in the UAE and outside of it. The company can buy land, but it must be within a pre-demarcated area in Dubai. All the advantages of the company can tour dubai từ hà nội be reserved in its own bank account. There is no condition of least capital threshold. The offshore company is frequently used as holding companies or asset companies that are used for organizations that operate and within outside the UAE.

There are convincing advantages of establishing an offshore tour dubai company. It has condensed the setting up costs, no requirement to hire physical office space, and worthiness to own real estate property. These companies have office addresses. They are registered in the UAE; however, they are not eligible to directly conduct business activities in the UAE. The company shareholders are also not permitted to acquire residency visas.

Based on the UAE laws, an offshore company is not measured as doing business in the UAE when it does the following:

Preserve business record around the UAE.

Has a bank account in UAE for its repetitive operational transactions

Conduct business meetings with company member within the UAE

Hires a real estate property which is used as a registered office or owns a property in a free zone area.
Restrictions of the free zone and offshore companies

Free zone Company

Customs duty of 5 percent is applied on imports to the local market

Direct trade is banned within the UAE local market

Operate the local business over and done with locally appointed distributors
Offshore company

No letter of credit or any other facility is permitted

Not allowed to rent any office space within UAE

Employment visas and permits will not be approved
There are some of the most common differences between the free zone and offshore companies. It assists a lot to be familiar with them before you decide on the company to set up in tour dubai từ hà nội.

GCC Solutions specializes in Business Setup in Dubai . We are the best business setup consultants in Dubai offering services including LLC company formation, ADGM company formation , and RAK offshore company formation.