Few leaks in last two years have defamed the offshore jurisdictions and offshore companies a lot in the eyes of common people and even few entrepreneurs. But these are not presenting the original situation. In fact, offshore companies still provide such advantages to company owners that are not available otherwise. The issue of legality of such offshore companies is exaggerated. Not only that there is no legal problem in setting up offshore companies but there are certain advantages available for companies after using offshore jurisdictions.
The first thing to understand is that offshore jurisdictions for businesses are exclusively used for gaining few clear and definite activities that exempt the owners from several obligations that are otherwise laid on them. One such activity is seen for the company related to SPVs (special purpose vehicles). Such entities are created as a subsidiary of parent company that remains secure due to its legal status even if the parent company becomes bankrupt.
When such companies are established in DIFC (Dubai International Financial Centre), they create a platform for their businesses in a cost-effective way. Incorporating these companies in DIFC can cost as low as $100 which is several times lower than such company in onshore location where they may pay the cost up to $1,000.
According to the DIFC’s Law number 2, such SPVs can be incorporated through a transparent and trouble free electronic submission of application and documents. Apart from that, there is no minimum capital or number of investors required for these companies. Businesses under such structures are known as “exempt activities” that provide certain incentives to companies and firms.
From the recent progress of businesses through these SPVs, it is evident that the recent leaks haven’t impacted negatively for formation of such companies in UAE. It is because such structures raise finances without costing much from parent company. It also provides security to assets through several measures.
So, the best place for setting up SPVs is Dubai that provides best advantages to such companies which is the reason of constant increase in formation of SPVs in Dubai. For complete assistance in formation of SUVs in Dubai, you can contact DOCS via landline # 00-971-4-558-6339.