How to Register a Company Abroad? (On the Example of the UAE)
The various objective reasons can trigger the promotion of business up to the international level: the change of the organizational structure of the business, diversification at the international level and optimization of the various business processes are among them. It is quite reasonable to register a new company abroad to solve these problems, or to acquire the already existing legal entity.
If you have decided to promote your business up to the entirely new international level, you have to choose an appropriate jurisdiction. The strategic objectives of your business primarily drive this choice. Registration of the company abroad remains the most cost-effective solution for businesses expansion. One can easily reduce the production costs and the existing tax level under the condition of choosing the optimal structure of tax planning.
Besides, the registration of a company abroad is the opportunity to use the most advanced solutions in the area of qualified workforce reserves, international logistics, energy resources, etc. Moving the business into foreign jurisdictions is the favorable solution for business, both regarding the effective tax planning and regarding developing business structures.
The procedure of promoting business up to the international level is not as difficult as it may seem. Let's consider the main stages. So, to register a company abroad, you have to execute the following steps:
- Choosing an optimal jurisdiction for business;
- Choosing a suitable legal form for the company (limited liability, joint-stock company, etc.);
- Definition of the structure of the company (owners and managers, local agent, availability of the corporate service, etc.);
- Additional requirements and parameters (opening a real or virtual office, post office box, legal address, qualified personnel, banking services, industrial and other premises, etc.);
- Choosing a specialized company which will implement the registration and subsequent legal support of business.
The entrepreneur should understand that the main purpose of promoting business up to the international level is not the evasion from paying the required taxes, but the optimization of both separate components, and the entire business process. Remember, that the concealment of incomes and tax evasion is a serious violation of the fiscal law of any country, and it can result in serious negative consequences for business and its owners.
The modern practice outlines a few lawful ways of optimizing the taxable base, whereby each has its own tasks and goals. Political and economic stability of the jurisdiction is the main factor for some entrepreneurs, while others make their choice in favor of the preferential terms of country taxation.
Company registration abroad – true or false
There is a misconception among the entrepreneurs that a company registration abroad is very expensive. Now let’s take a look at how to register company abroad.
You should have unbiased information in order to get a precise idea of the costs, which are implied when moving business abroad. The experts recommend working only to the proven companies and professional lawyers who will not only tell you on the presumed costs but will make a comparative analysis of different jurisdictions about your business.
Typically, the client, who faces registering a company abroad for the first time, has a lot of questions because of lack of information. In such situation, you can always count on the professional support and maximum assistance. It is enough for you just to use the “contact us” form and you will get the experts’ answers to all your questions.
Our company has a rich accrued experience and is ready to provide you with all the possible support in the most various aspects. Choosing of the appropriate legal form, preparation, and formation of the set of documents for incorporation and registration itself of a legal entity on a turnkey basis - we will take care of all the uncertainties about your business organizational issues. Moreover, our clients can count on the following services:
- A thorough analysis of the information about the necessary jurisdiction;
- Choosing the country and the legal form of a legal entity taking into account the requirements of your business;
- Preparing of the initial applications and incorporation documents of the company;
- Procedure of registration of a legal entity;
- Choosing the appropriate banking institution and opening a corporate account;
- Legal support of the business and assistance when submitting financial reporting.
The Advantages of company registration abroad
So what are the benefits of company registration abroad It is possible to single out several key points among the main advantages of transferring business into the optimal jurisdictions, in particular, these are:
- Optimization of the various business processes of the company;
- Positive and respectable image of the company;
- Entering new markets and search for business partners;
- Preferential access to the regional markets;
- Simplified registration procedure and minimum reporting requirements;
- Stable political and economic situation within the country;
- Sustainable financial system and modern banking sector;
- Customs and tax incentives for foreign investors.
The modern practice shows, that one of the effective tools for the development of the international business solutions, and increasing the managerial and tax efficiency, is to register company abroad in the jurisdictions with low tax level. Registration of a foreign company – is the possibility to use the competitive advantages while carrying out the entrepreneurial and economic activities.
Dear readers, we call your attention to five reasons why one should register or buy an already established foreign company.
- Confidentiality of information about the owners of the company. In the conditions of quite aggressive and unfair competition, any business seeks to protect its economic activities. The most appropriate solution, in this issue, is the registration of a foreign company, as the information about shareholders and ultimate beneficiaries of the business is closed.
- Safety of the information about the business partners and commercial secrets of the company. In the case when the exclusivity of the supplier is a major advantage among the competitors, protection of information about such is of great importance. For example, company registration abroad, in the United Arab Emirates is an excellent opportunity to ensure the secrecy of information about commercial secrets and key business partners.
- Optimization of the country currency exchange regulation. It is not a secret for the entrepreneurs, who carry out international commercial activities that such operations are often associated with a large amount of documentation. This problem gains a special relevance if the company has a great number of foreign business partners. For each such transaction, there is a need for obtaining permission, prepare a large set of documents, etc. Preparation of the required documentation requires much time and a whole team of the qualified employees. In such a situation, a foreign company can become an effective solution. For example, one contract is made with an affiliated company, which will subsequently execute the distribution and consolidation of the financial flows from the foreign partners.
- Entering the international capital market. It is not a secret that foreign banking and credit institutions offer the best conditions for financing of the various business processes. Company registration abroad allows one to gain access to unlimited financial resources in the form of loan products and programs for business development. Business abroad can count on the more attractive terms of financing.
- Optimization of tax payments and other expenditures. Certainly, an additional benefit, when registering a company in a foreign jurisdiction, is the optimization of the costs, including the tax payments. Jurisdictions, which allow business to minimize the tax burden are known in the world practice. For example, in the Emirates business is exempted not only from the corporate but also from many other taxes.
Five reasons, which were listed above, are to show all the advantages and benefits of company registration abroad. If you haven't thought about the possibility of optimizing the production cycles and increasing profits at the expense of reducing the tax level, you have such a possibility. Taking into account the fact that the cost of registration in the most cases is comparable with the cost of registration of the company in the domestic market, and you even don't always have to go another country to register company abroad, one should at least consider such a possibility. Contact our experts and learn how to promote your business up to the international level with the minimum cost and with the maximum efficiency.