Offshore trust & Use of offshore trusts

An offshore trust is simply a conventional trust that is formed under the laws of an offshore jurisdiction.

Generally offshore trusts are similar in nature and effect to their onshore counterparts; they involve a settler transferring (or 'settling') assets (the 'trust property') on the trustees to manage for the benefit of a person or class or persons (the 'beneficiaries').

However, a number of offshore jurisdictions have modified their laws to make their jurisdictions more attractive to settlers forming offshore structures as trusts.

Also, two civil jurisdictions, who are sometimes considered to be offshore, Switzerland and Liechtenstein, have artificially imported the trust concept from common law jurisdictions by statute.

Use of offshore trusts

Official statistics on trusts are difficult to come by as in most offshore jurisdictions (and in most onshore jurisdictions), trusts are not required to be registered.

There is a common perception that offshore trusts are predominantly used by wealthy individuals and families as part of their tax planning. This may be true; however there are also other purposes that offshore trusts are used for.

Offshore trusts are also sometimes formed as unit trusts to operate as a mutual fund.

Offshore trusts are often used as part of an orphan structure in capital markets or trade finance transactions.

Pan-national non-governmental bodies are sometimes established as offshore trusts. For example, the International Cricket Council is formed in the British Virgin Islands.

Asset protection

Certain jurisdictions (notably the Cook Islands, but the Bahamas also has a species of asset protection trust) have provided special trusts which are styled as asset protection trusts. Whilst all trusts, to a degree, have an asset protection element to them some jurisdictions have enacted laws trying to make life difficult for creditors to press claims against the trust (for example, by providing for particularly short limitation periods). In practice the effectiveness of such trusts is limited as the bankruptcy and/or divorce laws in the settler’s home jurisdiction will usually operate to set aside transfers to the trusts, and most jurisdictions (including offshore jurisdictions) set aside transactions entered into defraud creditors.

Should you require more clarification please feel to contact me on rupeshpr@gmail.com

Mubadala: UAE will grow faster than rest of world | GulfNews.com

Mubadala: UAE will grow faster than rest of world | GulfNews.com

Offshore Company For Buying And Selling Of Properties & To Protect Your Assets.

UAE offshore company for buying and selling Properties & Protect Your Assets.

With our last 10 year of experience and knowledge we have positioned ourselves as a leading ISO certified corporate service provider to major real estate broker firms and property investors in the UAE.

We are able to assist you on all aspects of setting up a UAE offshore company in relation to buying, selling, and managing properties within the UAE and have a working knowledge of the practices of local authority.

Many real estate investors and end users prefer buying, selling, managing (especially UAE) properties through a UAE Offshore company – known as corporate property owners rather than individual property owners.

Advantages of using a UAE offshore company for buying and selling Properties:

Set up time: 2- 3 working days.

Tax and duty exemption.

100% foreign ownership permitted and 100% tax and duty exemption.

Double Tax Avoidance Agreement (DTAA)

 SUMMARY

Since UAE have zero taxation, accordingly double taxation prevention treaties are aimed at making the UAE a more attractive jurisdiction to incorporate offshore companies to protect assets and to do international trading. Generally, under these treaties profits generated from shares, dividends, interest, royalties and fees are taxable only in the state where the income is earned according to mutually agreed terms and conditions.

• Protect expat investors from direct or indirect double taxation.

• Investments to be taxed in the country of residence other than that country of source.

• The U.A.E signed several bilateral agreements for avoidance and prevention of double taxation with most of its major trade partners.

ADVANTAGES

• Reduced Dividends Tax

• Exempting Deposits from Tax

• Exempting Capital gains from Tax

• Exempting national air carriers and shipping companies working in international traffic from taxes and fees

• Exempting Government Sector Establishments from Taxes on Dividends, Interest and Capital Gains

• The Significance of the Tax Agreements to the Foreign Investor and the Investment funds

• Impact of the Tax Agreements on attracting ForeignInvestments and capital Movements

Corporate Bank Account

Bank account opening with UAE prime banks, multi-currency, with full internet access, making it easier for international money transfers.

Physical Office not required.

No physical office in the UAE required with the Offshore License. You will use our physical address as registered agent with the government, saving you a lot operational costs in terms of renting offices.

Asset Protection in Case of Death

In case of death, corporate ownership of assets (such as properties) is transferred via simple company share transfer to new beneficial owner, saving a lot of legal inheritance troubles and costs.

Confidentiality

Corporate ownership and business ensures beneficial owner's confidentiality.

Joint Investments

Best choice in case of joint investments and joint businessowners.

Other Activities Allowed

The company can also act as Trading Company, ConsultingCompany, Holding Company (Buy/Hold/Sell stakes of companies).

Should you require more clarification please feel free to contact me on rupeshpr@gmail.com or call me 

on 00971- 55 366 0266.