Monthly Archives: February 2026

Are you doing digital business? Or are you an entrepreneur with investments in multiple businesses around the globe from which you draw dividend income and/or consulting income.

Are you tired of excessive onshore taxes and heavy regulation? If so you might want to consider setting up a Freezone Company in the UAE. The most attractive option at present for such clients would establishment of a Dubai IFZA Company.

An IFZA Corporation would enable you to engage in any of the following:
1. Holding activities (e.g. receiving dividends from subsidiary companies)
2. Consulting services
3. IT-related business

If you’re engaged in only one of these activities, a single license would be sufficient. However, if you intend to carry out two or more of the above activities, a separate license may be required for each.

The Proposed Activity for such clients would be category 6499001 ie Investment in Commercial Enterprises & Management

This category includes firms and holding companies formed in order to invest their funds through the establishment of subsidiary firms which carry out various commercial activities, as well as transport, contracting and financing activities, besides other investments or shareholdings in commercial enterprises. This also includes the management of such subsidiary companies and the organization of their affairs. Whilst UAE domestic companies are liable to 9% tax its our understanding that non UAE sourced income generated by such a Company would be free from tax in the UAE.

An IFZA Corporation also entitles you (subject to passing medical tests) to apply for a residence permit in the UAE. With a carefully managed exit strategy, and provided you’re away from your home country at least 6 months every year (and, ideally, provided you are not seen to have retained a “substantial connection” to your home country) this could enable you to escape your local tax net and become a UAE resident for tax purposes, greatly enhancing your bottom line (the UAE does not levy personal income tax on individuals).

About IFZA.

The International Free Zone Authority (IFZA), located in Dubai Silicon Oasis, is one of the UAE’s most dynamic and cost-effective free zones for company formation. Designed to attract both startups and established international businesses, IFZA offers flexible licensing options and a streamlined setup process.

Key Highlights include
• Business Ownership: 100% foreign ownership permitted.
• Tax Benefits: 0% corporate and personal income tax on qualifying activities.
• Licences Available: Professional, Commercial, Industrial, and Holding licences.
• Office Solutions: Wide range of options — from Flexi-desks to executive offices.
• Company Types: Single or multiple shareholders (individual or corporate).
• Banking & Residency: Access to UAE banking and eligibility for residence visas.
• Fast Setup: Incorporation within a few days with minimal documentation.

Why Choose IFZA:
• Competitive setup and renewal costs.
• No physical presence requirement during incorporation.
• Reputable jurisdiction under UAE federal law with strong compliance standards.
• Ideal for consultants, traders, e-commerce operators, and global entrepreneurs seeking a Dubai base.

Cost

To set up such a Company via OCI costs would be as follows
• License package: 5,500 USD
• 2 years residence visa processing: from 1470 USD per visa
• OCI incorporation fees: 2,500 USD

Estimated first year: 9,470 USD

The above packages includes a flexi desk solution, that provides a registered business address and access to shared office facilities.

Annual renewal is in the same range as the license package, provided there are no structure changes (e.g. visa quotas or office upgrade).

The residence visa is valid for 2 years and renewed separately at a similar cost.
Would you like to know more? Then please Contact Us:

www.offshoreincorporate.com

info@offshorecompaniesinternational.com

ocil@protonmail.com

oci@tutanota.com

oci@safe-mail.net

ociceo@hushmail.com

DISCLAIMER: OCI is a Company/Trust/LLC/LP/Foundation Formation Agency. We are not tax advisers or legal advisers. You are advised to seek local legal/tax/financial advice in regards to your local reporting/tax requirements before committing to set up or use an Offshore Company or other entity.

An SRL, or Sociedad de Responsabilidad Limitada, is a Panamanian structure comparable to a Limited Liability Partnership (UK) or a Limited Liability Corporation (USA). This type of entity, although not popular as the well known Panama S.A., is equally important and offers significant advantages in certain cases.

The Limited Liability Companies in Panama are regulated by the Commercial Code and Law 4 of January 9 of 2009 (hereinafter “the law), which replaces Law 24 of 1966.

Among the most interesting features of the Panama SRL we find the following:

1. The new Law provides for an unlimited number of partners, which can be individuals or corporate bodies, with no restrictions as to their citizenships or country of residence. However, two are the minimum number of partners required. Nominees can be appointed to reach greater privacy.

2. The new law does not provide for a minimum or maximum capital, therefore leaving it open.

3. The names of the partners must be registered with the Panama Public Registry, additionally specifying the Capital each contributed.

4. The economic liability of each partner for the obligations of the company will be limited to the amount of their participation made or promised.

5. One Manager can be appointed, in which case it can be an individual or corporate body of any nationality or jurisdiction of incorporation. Also in this case his/her name must also be recorded on public records.

6. No meetings are required to be held, unless otherwise is stated on the articles of incorporation.

7. If the articles so dispose, the manager of a Panama SRL can represent the company in any judicial or extrajudicial proceeding, but it will require a special power of attorney to carry on acts that go beyond the normal course of business. He/she will need authorization to transfer assets and to encumber assets or secure debts of the SRL.

8. Once the SRL is recorded it acquires a different legal personality from that of its members and managers.

9. For tax purposes, this is a transparent vehicle, that at least in the United States it can be considered as a “disregarded entity”.

10. The name must bear one of the following two endings: “SOCIEDAD DE RESPONSABILIDAD LIMITADA” o S. DE R.L. The name cannot be similar in any way or form to a name already registered, notwithstanding if it is a different type of company, like an S.A., for example.

To incorporate an LLC Company in Panama with OCI usually costs $US1,500 and from 2nd year $990. We can also supply Nominee Directors (3) for $1,200 per year.

Would you like to know more? Then please Contact Us:

www.offshoreincorporate.com

info@offshorecompaniesinternational.com

ocil@protonmail.com

oci@tutanota.com

oci@safe-mail.net

ociceo@hushmail.com

DISCLAIMER: OCI is a Company/Trust/LLC/LP/Foundation Formation Agency. We are not tax advisers or legal advisers. You are advised to seek local legal/tax/financial advice in regards to your local reporting/tax requirements before committing to set up or use an Offshore Company or other entity.

A Foundation Company is a vehicle unique to the Cayman Islands and has features and flexibility that allow a company to retain separate legal personality and limited liability while functioning in a way similar to a civil law foundation or common law trust. This can make foundation companies attractive for both private wealth structures and commercial enterprises.

CORPORATE STATUS

A foundation company is a body corporate with a legal personality distinct from its members, directors and other connected persons. As foundation companies are governed by the Companies Act (Revised), except where it is inconsistent with the Foundation Company Act, 2017, they benefit from an extensive body of case law and are well recognised in other jurisdictions.

TYPICAL USES

Foundation companies may be an attractive alternative to trusts, particularly for clients in civil law jurisdictions where a trust may be unfamiliar or the tax treatment uncertain, and offers many of the features of a trust that make them ideal succession planning and asset protection vehicles. Clients from common law jurisdictions frequently use foundation companies to hold higher-risk assets such as shares in family businesses and as part of family office and private trust company (PTC) type structures.

It is possible to use foundation companies to act as ownerless or orphan vehicles making them suitable solutions in the context of PTCs, investment funds or in wider commercial transactions.

By way of example, foundation companies may be suitable for use as:
• holding vehicles for shares in a PTC (Private Trust Company)
• a protector or enforcer of a trust
• special purpose vehicles in financing or commercial transactions
• a vehicle for cryptocurrency related projects, from initial coin offerings (or ICOs) and trading operations
• a traditional succession planning and asset protection vehicle
• a vehicle for philanthropic uses.

INCORPORATION

Any new or existing company incorporated under the Companies Act (Revised) may apply to the Registrar of Companies (Registrar) to be a foundation company provided certain conditions have been met. The conditions are that the foundation company:

• is limited by shares or by guarantee, with or without share capital;
• has a memorandum that:
o states that it is a foundation company;
o describes its objects (which may include beneficiaries);
o provides, directly or by reference to its articles, for the disposal of surplus assets on winding up; and
o prohibits dividends or other distributions to members;
• has adopted articles; and
• has a secretary who is a person licensed to provide company management services in the Cayman Islands (Secretary).

CONSTITUTION

A foundation company’s constitution may grant any person the right to become a member. It can cease to have members if (i) its memorandum permits, and (ii) it continues to have a supervisor, being a person, other than a member, who has a right to attend and vote at general meetings. Once it has no members, the foundation company will not be able to admit new members or issue shares unless its constitution permits it.

A foundation company’s management will be carried out by its directors. In addition, its constitution may give rights, powers and other duties to members, directors, supervisors, founders or others relating to:
• admitting, appointing or removing members, supervisors and directors;
• making and amending any bylaws;
• the supervision of the foundation company’s management and operations;
• enforcing duties;
• general meetings and voting on resolutions;
• altering the constitution; and
• winding up and disposing of surplus assets.

BYLAWS

In addition to a foundation company’s constitution, it is possible for a foundation company to adopt its own tailored bylaws in order to modify or expand upon its management and operation. Utilising bylaws has the advantage of being a private document separate from the constitution, which does not need to be filed with the Register (unlike the constitution), and can offer more flexibility through amendment over time.

RIGHTS AND DUTIES

Unless varied by the constitution, duties are owed only to the foundation company itself and rights are enforceable only against the foundation company. This can make foundation companies well suited to holding higher risk investments because beneficiaries do not have direct rights of action against trustees as they would in a trust context.

Rights to information, such as reports and accounts, are limited to interested persons who are defined under the Foundation Act as any of its members or supervisors, someone with the right to be a member or supervisor or someone declared under the foundation company’s constitution to be an interested person. Interested Persons can bring actions in the name of or on behalf of the foundation company for the enforcement of directors’ duties in the same way as members of traditional companies.

Beneficiaries of a foundation company (if any) have no powers or rights in relation to the foundation company, its management or its assets.

SECRETARY

A foundation company must have a Secretary, licensed to provide company management services in the Cayman Islands. The foundation company’s registered office must be at its Secretary’s registered office and the Secretary.

COURT INTERVENTION AND RESOLUTION OF DISPUTES

The firewall provisions of the Trusts Act apply to foundation companies providing protection against claims in foreign courts. Similarly, the ability of a trustee of a Cayman Islands trust to apply to the Grand Court has been extended to foundation companies, offering assistance in contentious and non-contentious situations.

A foundation company’s constitution may require the resolution of disputes issues by arbitration and any resolution manner prescribed by the constitution cannot be set aside unless a party has committed fraud or conducted itself in bad faith.

TAX TREATMENT

A foundation company is not subject to any income, withholding or capital gains taxes in the Cayman Islands. Members or beneficiaries of a foundation company will not be subject to any income, withholding or capital gains taxes in the Cayman Islands with respect to their interests, nor will they be subject to any estate or inheritance taxes in the Cayman Islands.

In addition, a foundation company, which is incorporated as an exempted company, may apply for an undertaking that any law change to introduce taxes in the Cayman Islands will not apply for a period not exceeding 30 years from the date of approval of the application.

FEES

Every foundation company is required to pay an annual Companies registry fee to the Registrar in January of each year of CI$700 (US$ 854). The foundation company secretary is also likely to charge an annual fee.

In addition, there will be legal fees associated with the incorporation of a foundation company which will vary depending on whether the constitution needs to be tailored and whether bespoke bylaws are required.

Caymans Foundation Company Prices & Inclusions

OCI’s set up fee for a Caymans Foundation Company is $US5,125*. This fee includes the following:
• Government Fee on Incorporation – Share capital of US$50,000 or less
• Registration of Foundation
• Filing of Register of Directors and Officers
• Beneficial Ownership Compliance and Filing
• Economic Substance Classification
• Stamp Duty
• Notary Fee
• Professional Fee
• OCI supplying a local Foundation Secretary (year 1)

Would you like to know more? Then please Contact Us:

www.offshoreincorporate.com

info@offshorecompaniesinternational.com

ocil@protonmail.com

oci@tutanota.com

oci@safe-mail.net

ociceo@hushmail.com

DISCLAIMER: OCI is a Company/Trust/LLC/LP/Foundation Formation Agency. We are not tax advisers or legal advisers. You are advised to seek local legal/tax/financial advice in regards to your local reporting/tax requirements before committing to set up or use an Offshore Company or other entity.

*Note depending on the proposed business activities of your Caymans Foundation Company the Caymans Company Registrar may ask to sight a legal opinion advising that the Company’s business activities are not considered licenseable activities under the Caymans VASP Law. The above quote does not include the obtaining of such an opinion.