Question 1

Q-1. Can an Offshore company in Dubai own real estate?

Accepted Answer

Yes, but there are specific rules. An Offshore company can purchase and own freehold property in designated areas of Dubai.

JAFZA Offshore: This is a key advantage of choosing JAFZA. A JAFZA Offshore company can own real estate in specific areas approved by the Dubai Land Department.
RAK ICC Offshore: RAK ICC Offshore companies can also own property in the UAE, but it's important to confirm the specific rules with the land department in the relevant emirate.

This is a powerful benefit for investors who want to manage their real estate assets with a high degree of privacy and protection.

Question 2

Q-2. Do I need to visit Dubai to set up an Offshore company?

Accepted Answer

No, in most cases, you do not need to be in Dubai for the company setup. The process has been streamlined to accommodate remote setup.

Our team can handle the entire process on your behalf using a Power of Attorney (POA), which can be signed in your home country and then attested for use in the UAE.
We will manage all the paperwork, government liaison, and submission of documents, so you can complete the registration from anywhere in the world.

Question 3

Q-3. What is a "registered agent" and why is it mandatory?

Accepted Answer

A registered agent is a licensed service provider who acts as the official point of contact for your Offshore company. It is a mandatory legal requirement for all Offshore companies in Dubai.

Official Communication: The registered agent's office is the official address for all government and court notifications. They receive and forward all official mail to you.
Compliance and Filings: They ensure your company complies with all local rules, handling annual license renewals and other mandatory filings.
Professional Expertise: A registered agent is an expert in the legal framework of the jurisdiction. They provide guidance on all aspects of company setup and compliance, ensuring your business stays in good standing.

Question 4

Q-4. Are there any yearly auditing or accounting requirements for Offshore companies?

Accepted Answer

Offshore companies in Dubai are not required to submit an annual audit report to the authorities. However, it's crucial to understand the following:

Maintain Records: You are legally required to keep proper financial records and accounts for a specified period (usually 5-7 years).
For Banking and Other Needs: Even if an audit is not mandatory for the authority, your bank or other financial institutions may request an audit or financial statements. Maintaining accurate records is essential for this reason.

Question 5

Q-5. Can I open an Offshore company as a sole owner?

Accepted Answer

Yes, you can. Both JAFZA and RAK ICC allow for a single shareholder structure.

Simplicity: This makes the setup process very straightforward for individual entrepreneurs.
Control: As the sole owner, you have complete control over all business decisions.
Flexibility: You can also appoint additional shareholders or directors later if your business grows or your needs change.

Question 6

Q-6. What happens if I don't renew my Offshore company's license on time?

Accepted Answer

Failing to renew your company license can lead to serious consequences. The authorities are very strict about compliance.

Fines: You will face significant late fees and financial penalties.
Blacklisting: The company may be blacklisted, which can make it difficult to conduct business, open new bank accounts, or even get new licenses in the future.
Liquidation: If the license remains expired for a long period, the authority can cancel your license and strike the company from the register, leading to its forced closure.

Question 7

Q-7. How is an Offshore company different from a free zone company?

Accepted Answer

This is one of the most important questions to understand. While both offer 100% foreign ownership and tax benefits, their purpose is different.

Offshore Company: Designed for business activities conducted outside the UAE. It cannot rent a physical office, get visas, or trade within the UAE.
Free Zone Company: Designed for business activities conducted within a specific free zone and the wider UAE. It can rent office space, get visas for employees, and trade with mainland companies through a local agent.

Question 8

Q-8. Can I hire employees with an Offshore company license?

Accepted Answer

No, an Offshore company is not permitted to sponsor employee visas or hire staff in the UAE. If you plan to have a physical presence and a team in the UAE, a free zone or mainland company is a more suitable option.

Question 9

Q-9. Is there a minimum capital requirement to set up an Offshore company?

Accepted Answer

No, neither JAFZA nor RAK ICC has a minimum share capital requirement. This makes the setup process very accessible for a wide range of entrepreneurs.

Question 10

Q-10. How does an Offshore company help with international inheritance?

Accepted Answer

An Offshore company is a powerful tool for inheritance planning.

It allows you to hold your assets (like real estate or investments) within a legal corporate structure.
Upon your passing, the assets are owned by the company, and the shares of the company can be easily transferred to your chosen heirs without going through complex and lengthy local inheritance laws.
This provides a smooth and quick way to pass on assets to your family, giving you peace of mind.

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