Most Common Misconceptions on Offshore Companies
                     
Most Common Misconceptions on Offshore Companies
Myth: Offshore Businesses are Illegal
• This is perhaps what’s most damaging out of all misconceptions on offshore companies as it prevents 
savvy entrepreneurs from actually taking full advantage of all the benefits that are offered with offshore 
business setup.
Myth: Offshore Businesses are to do Illegal activities
• UAE offshore companies have lots of flexibility in running their businesses. They get to operate 
any business venture they wish to develop. However, UAE doesn’t permit offshore companies 
in committing acts that are against humanitarian laws recognized around the world.
Most Common Misconceptions on Offshore Companies
UAE offshore companies can’t participate in Extortion, murder 
for hire, Prostitution, Drug trafficking
• Yes, a UAE offshore company can make its own decisions business-wise without government 
interference, unless the government is given evidence on illegal activities that are being 
conducted by the offshore company.
Myth: An offshore company is completely unregulated
• There are those that think offshore companies don’t follow any regulations. This is not true. 
UAE offshore companies have more freedom in comparison to companies that are established 
in mainland jurisdictions, but that does not mean at all that offshore businesses get to evade 
regulations.
Most Common Misconceptions on Offshore Companies
Myth: Offshore Business setup is a Brand new Trend
• Offshore business setup in UAE has gained lots of media attention nowadays. The reason 
behind this is because more and more people have realized the benefits they bring to the 
table. However, establishing offshore companies is actually not something new.
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