Dubai is currently home to at least $146 billion in foreign wealth. This wealth can be attributed to the country’s diverse business opportunities, including its strong economic growth, world-class infrastructure, and favorable tax system.
What Is an Offshore Company?
An offshore company is a legal entity created in a particular jurisdiction but operating outside that jurisdiction. Offshore companies are organized in countries where the laws and regulatory requirements are more flexible than in some other jurisdictions, like those on the European Continent, North America, or the Middle East.
The offshore company will be incorporated in a low-tax country and operate from there, with most of the profits being declared in that country. The owners of an offshore company have no residence or other tax liabilities in that country.
How can I start an offshore company in Dubai?
The Emirates laws and regulations allow offshore company formation in Dubai, the process is easy to do as well for non-Emirati residents. The UAE’s lenient tax structure, politically stable environment, and business-friendly destination allowed the growth of this business structure at a rapid rate.
You can run your business with offshore incorporation and gain complete asset ownership in the UAE. At present, there are only 2 crucial jurisdictions offering offshore companies formation which are Jebel Ali Free Zone and Ras Al Khaimah.
Offshore company registration Steps in the UAE
For an entrepreneur to form an offshore company, the applicant must submit copies of passports, proof of residency, details of the company shareholders, and other relevant documents for approval and a certificate of incorporation to the offshore company register.
As an offshore company stakeholder you can open bank accounts in the UAE but you will need bank account opening assistance from Business Setup Consultants in Dubai. While incorporating an offshore company is straightforward, the process requires the assistance of an experienced company registration agent to make the complex procedures smooth.
Can an Offshore Company in Dubai do regular business?
As an owner of an offshore company, you can do regular business activities in Dubai. You can decide the location to open your office (as long as it is in three jurisdictions) and hire new employees. As an owner of an offshore company, you are free to set up a virtual office or even rent a physical address if needed.
List of Offshore companies business ideas
Dubai is a growing market for offshore companies, as many people want to buy local goods and services. Here is some of the businesses that you can launch:
- Consulting firms
- Distribution and logistics firms
- Trading companies
- Property holding firms
- Shipping firms
The allowed locations of an Offshore Company
In the UAE, the federation is made up of seven different emirates and each emirate has its own judicial system. Only three of these jurisdictions have the right to operate offshore in the UAE. Here are the three locations
- RAK International Corporate Centre
- No local shareholding is necessary for a RAK offshore business.
- A UAE citizen who may assist you with the registration of your RAK offshore business is a registered agent. Hence, it indicates that you are not required to be physically present in the UAE to register a corporation.
- RAK offshore firms are established within one week after application.
- At least one shareholder and one director are required to set up an offshore company.
- Jebel Ali Free Zone (JAFZA)
JAFZA Offshore Company or Jebel Ali Offshore Company has almost the same characteristics as RAK Offshore Company. However, some differences include:
- JAFZA Offshore Company Formation can help you incorporate your company in the UAE’s premier commercial hub.
- Registering a JAFZA offshore company is relatively more expensive.
- A shareholder should travel to the United Arab Emirates to complete the offshore company registration process.
- They must submit an annual audit report to the JAFZA authorities.
- Offshore company JAFZA would require at least one shareholder, one secretary, and two directors for registration.
- Ajman Free Zone
The characteristics of Ajman offshore company are similar to RAK offshore company. However, the features listed below make it the preferred choice in the corporate environment.
- An offshore company in Ajman is cost-effective and profitable. It requires a minimum budget for running costs.
- Any change in the company structure is possible without any problems. For example, you can change shareholders in a week.
- These companies require at least one director and one shareholder to be registered abroad. In addition, shareholders and directors can be the same person.
How much does it cost to set up an offshore company in Dubai?
Depending on the type of business you wish to set up, the length of incorporation and all other factors required, the costs will vary. However, you can expect to be charged between AED 70 and AED 2,300 by companies that provide this service.
There are different procedures and requirements that influence cost and average time it takes to set up your offshore company but this can depend on a number of factors such as where the owners are based, how transparent they want the company to be, whether the need or not for the signatories to hold power of attorney (POA) and whether they wish to incorporate their new business or register it as an LLC.
There is no minimum capital required to incorporate an offshore company in the UAE. Thanks to the 2009 Company Law Amendment, offshore companies can now determine the share capital of their limited liability company. Also, the UAE offshore authorities will not require you to see a certain amount of capital in your bank before incorporating your offshore company.
Work With US
Experienced Business Consultants such as Absher Business Consultancy offer UAE Visa Services for getting visas on behalf of foreign investors, families, and employees. Their services include collecting and attesting business documents, processing company registration applications, and submitting them to the relevant local authorities. They arrange for biometrics and pay the visa fees and medicals for the applicants. They also arrange all types of visas, including business and tourist visas. With experts, you can avoid any cumbersome procedures like getting your documents attested and so on.
Offshore Company Formation in Dubai or anywhere in the UAE is a legal way to help your business grow. You can take advantage of relaxed laws and regulations and thrive in a business ecosystem that is tax-free. Offshore companies allow 100% foreign ownership and are ideal for asset protection and privacy. However, as with anything, the formation of an offshore company brings its challenges. Use the information in this article to plan your next step and take that big step toward growing your business. It is significant to seek the assistance of offshore company formation agents to make the process hassle-free. The service providers come up with competitive packages that help you streamline the process. Some of the services include drafting contracts and agreements, advice on banking, taxation, investment, renting office space, and more. Experience matters in this forte.