Will the “Panama Papers” Leak Spell Danger for Offshore Tax Havens?
This article is about offshore company formation in UAE and if it’s safe to incorporate offshore company after Panama Papers scandal.
The Panama Papers, an unprecedented leak of 11.5 million files from the database of the fourth biggest offshore law firm in the world, Mossack Fonseca, reveal the myriad ways in which the rich exploit offshore tax regimes to hide their money.
A Panama-based law firm, Mossack Fonseca services include creating Panama offshore shell companies as well as in offshore jurisdictions such as the British Virgin Islands.
Close to 140 offshore companies mentioned in the documents are connected to political leaders, billionaires, film stars and sports stars. World leaders named in the leak include Argentine President Mauricio Macri, Iceland’s Prime Minister Sigmundur Davíð Gunnlaugsson, Ukraine’s President Petro Poroshenko, families of some of China’s top brass, the British Prime Minister David Cameron and associates of Russian President Vladimir Putin who are alleged to have secretly shuffled billions through banks and shadow companies to conceal their fortunes.
Are all offshore financial dealings illegal?
No. What has happened in Panama is not representative of the wider industry. While offshore dealings are not illegal in themselves, they may be used to hide assets from tax authorities and conceal misappropriated political wealth by the mega-wealthy.
Would you recommend offshore company formation in Dubai?
Absolutely. One major reason people hold money in a Dubai offshore company account, which is an account in a jurisdiction different to the one in which they reside, is convenience.
Dubai offshore company formation offers owners safe, flexible and international access to funds no matter where they may live and where they may move to in the future. Global investors do business in Dubai as it is well-regulated and set to grow and mature exponentially.
What are 3 top factors that make offshore company formation in Dubai a great option?
A thriving business hub in the Middle East, having a UAE offshore company protects companies that operate in multiple jurisdictions from double taxation, as the UAE is free from all kinds of tax be it income tax, capital gains tax, inheritance tax, etc.
Confidentiality is a huge plus, as the UAE does not disclose information to OECD, which means that all records of your wealth will usually be owned by a company which no one except you, as the owner, will know.
Thirdly, UAE offshore companies can have 100% foreign ownership, given the free zone options in the country.
What are the 3 top options to choose from to setup a UAE offshore company?
The first in Dubai itself, under the regulating authority called Jebel Ali Free Zone Authority (JAFZA). The second is in Ajman, under the regulating authority, Ajman Free Zone. And the third is in Ras Al Khaimah, under the regulating authority, Ras Al Khaimah Investment Authority (RAKIA).
Unsure of which regulating authority is the ideal choice for you? Let our team at BSC help you.
Written by Business Setup Consultants
Business Setup Consultants provide a genuine 'customer focused' experience for it's clients. YOUR premier business setup provider or company setup provider in Dubai, Ajman Free Zone, Hamriyah Free Zone, Dubai Multi Commodities Centre (DMCC) and RAKIA.
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