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Offshore Company Setup in Dubai

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UAE OFFSHORE COMPANY FORMATION

Establishing an offshore company in the United Arab Emirates (UAE) presents numerous legal and financial advantages, including confidentiality, enhanced privacy, tax savings, and offshore asset protection. These incentives make it an attractive option for businesses looking to elevate their operations. An offshore company in the UAE can be utilized for wealth maintenance and creation, international trading, contracting, consulting services, property holding, and asset protection. Operating through a legal entity like an offshore corporation also offers significant privacy and confidentiality benefits. Companies operating from the UAE’s offshore jurisdictions can benefit from:

  • No corporate tax

  • Absolute privacy and confidentiality

  • The ability to maintain bank accounts in the UAE

  • The option to select the country of law, such as English Common Law

  • The ability to issue multiple classes of shares

The UAE offers two options for offshore company formation, and the choice of type depends on factors such as your business sector, services, and objectives. Contact us to determine the most suitable location for forming your offshore company.

  • A limited liability company structure

  • A requirement of at least one director and shareholder

  • 24-hour incorporation time (subject to receipt of all documentation)

  • A wide availability of company names

  • Virtual office facilities available in the UAE

DUBAI OFFSHORE COMPANY FORMATION

Establishing an offshore company in Dubai can be a seamless process with the appropriate guidance, unlocking numerous opportunities for your business. GLEEFINITY has a longstanding reputation for assisting individuals and companies in initiating their ventures in the Emirate, providing expert advice and insights to help you explore new and exciting commercial avenues. For comprehensive information on the offshore company setup process, its benefits and drawbacks, the necessary documentation, and more, please refer to our guide below to ensure a successful start for your Dubai offshore company.

What is The Offshore Set Up Process?

Establishing an offshore company in Dubai is a simple and efficient process that involves only a few straightforward steps.

1.) Company name

When registering a company name, it is crucial to avoid using certain keywords prohibited by UAE law. This process can be challenging for some businesses, but GLEEFINITY is here to help ensure your compliance with legal requirements.

2.) Complete the application

The subsequent step in establishing a company in Dubai involves submitting various documents. This includes providing proof of identity and address for directors and shareholders, such as passports, as well as submitting a curriculum vitae for each director and shareholder, along with a bank reference document.

3.) Open an offshore bank account

To establish an offshore bank account for facilitating financial transactions, companies must first apply to form an offshore company in Dubai as a multiple corporate entity. This process requires submitting certificates confirming the business’s registration and current good standing, along with the Memorandum of Association (MOA), the Articles of Association (AOA), and a board resolution pertaining to the establishment of the offshore company.

What Makes Offshore Companies So Appealing?

Incorporating an offshore business in Dubai offers numerous advantages, with significant tax savings being a primary attraction. Other key benefits include enhanced privacy, offshore asset protection, and opportunities for wealth creation through contracting or international trading.

Advantages of Dubai Offshore Companies

Establishing an offshore company in Dubai offers your business several advantages, including:

No corporate tax - This implies that your company is exempt from corporate taxes, which is advantageous for new offshore companies in Dubai seeking to maximize their profits.

100% foreign ownership - In the UAE, foreign ownership is limited to 49% outside of free zones. However, an offshore business in Dubai is permitted to conduct trade within the free zone and internationally.

Enhanced privacy - To register the company, it is sufficient to appoint one director and one shareholder. This approach enhances privacy and confidentiality for all parties involved.

Full repatriation of capital and profits - You can also transfer funds for free while there’s an exemption from import and export duties, provided that the goods aren’t being sold on the local market.

No currency limitations - You have the flexibility to utilize any global currency as capital for your business, facilitating easy transfer and management.

Corporate bank account - Establishing an offshore company in Dubai provides the opportunity to open a corporate bank account within the region.

Select country of law - During the setup process in Dubai, you have the option to select a governing law. For instance, if you are from the UK, you may choose English common law.

Fast incorporation - Offshore companies in Dubai can typically be incorporated within 24 hours, provided all necessary documentation is received and meets the required standards.

Virtual offices - Although your offshore business in Dubai cannot establish physical premises within the country, you have the option to set up virtual offices to manage your international operations.

What Is the Tax Status of Dubai Offshore Companies?

One of the main attractions for businesses setting up an offshore company in Dubai is that it offers tax free status for offshore companies that are registered in any of the free zones. This includes both corporate and income tax, giving new companies greater levels of flexibility to build wealth. In addition, you can also keep 100% of the returns from the business without restriction. It’s why Dubai and the UAE has attracted so much investment in recent years, strengthening the economy the potential of companies that are registered in the country.

Limitations on Establishing an Offshore Company in Dubai

Before initiating your application to establish a Dubai offshore company, it is important to be aware of certain disadvantages.

  • An offshore company established in Dubai is prohibited from engaging in trade within the city or the United Arab Emirates.

  • The company is not authorized to lease premises, hire staff, or apply for residence or work visas for employees in the UAE.

  • Offshore businesses in Dubai are prohibited from utilizing the UAE’s double taxation treaties to reduce global withholding taxes.

  • An offshore company in Dubai is prohibited from investing in UAE real estate.

Which jurisdictions and regions facilitate offshore establishment?

Ras Al Khaimah (RAK) and the Jebel Ali Free Zone (JAFZA) are the two primary jurisdictions in the UAE that permit the establishment of offshore companies. For a comprehensive analysis of the advantages and disadvantages of each, please refer to this detailed article. Additionally, the Charterhouse team is available today to explore your options and determine the most suitable jurisdiction for your business.

RAK OFFSHORE COMPANY VS JAFZA OFFSHORE COMPANY – THE PROS AND CONS

Establishing an offshore company in the UAE offers numerous benefits, such as facilitating international market expansion and providing access to global funding. Additionally, it allows business owners to maintain the separation of their assets from their operational entities. The primary jurisdictions for offshore company formation are Jebel Ali Free Zone (JAFZA) and Ras al Khaimah (RAK). Below is further information on both jurisdictions to assist you in determining the most suitable option for your needs.

Setting Up an Offshore Business in RAK

RAK offshore companies offer versatility for a wide range of business activities. The International Company structure was introduced in 2006, allowing company owners to establish offshore enterprises. This option is considered cost-effective, being 25% to 50% cheaper than the UAE average. Additionally, RAK is conveniently located just an hour’s drive from Dubai.

If you are contemplating the formation of an offshore company in Ras al Khaimah, it is important to be aware of the following details:

Checklist of Requirements for RAK

To set up an offshore company in RAK, you’ll need: A minimum of one shareholder, one director, and one secretary is required. Please note that the director may also serve as the secretary if desired. Additionally, a certified copy of your passport, an original utility bill (not more than three months old), and your curriculum vitae are needed.

The Advantages of having an offshore company in RAK

You can conduct operations with confidentiality, as the names of all shareholders and directors are not disclosed to the public. You will enjoy 100% foreign ownership, eliminating the requirement for a local shareholder. Additionally, you are authorized to hold shares in both onshore and free zone companies. Access to a local bank account is also available. The incorporation process is swift and straightforward, typically taking approximately one week to register an offshore company.

Setting up an offshore business in JAFZA

The UAE’s other main offshore jurisdiction is JAFZA. It is established in 1985, introduced the Offshore Company in 2003. Located near Dubai, it is approximately an hour’s drive from Abu Dhabi. JAFZA provides access to one of the world’s largest shipping ports and Al Maktoum International Airport.

The Advantages of having an offshore company in RAK

To set up an offshore company here, the requirements are slightly different. You’ll need: A minimum of one shareholder is required, along with two directors. Additionally, a secretary is necessary, and one of the directors may assume this position. The following documents are needed: a certified copy of your passport, an original utility bill dated within the last three months, and your curriculum vitae.

The advantages of having an offshore company in JAFZA

Companies registered in JAFZA are authorized to own real estate in Dubai. They enjoy the advantage of 100% foreign ownership and, similar to RAK, are allowed to hold shares in both onshore and free zone businesses. JAFZA companies can maintain confidentiality by not disclosing the names of shareholders or directors. Additionally, they have the option to open a local bank account. While the company registration process in JAFZA may not be as expedited as in RAK, it remains relatively swift, typically taking around four weeks.

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