UAE is the ideal location for your offshore company ideas. In an Offshore company formation you will get the benefit from tax exemptions and a modern infrastructure. Make the most of the vibrant city with your offshore business setup in the UAE and easily reach out to consumers internationally in the large marketplaces of the Middle East and beyond.
UAE has advanced its diversification efforts and sustained economic development.The primary cause for the expansion is business-friendly government policies and initiatives, tax regimes, and infrastructure, to name a few.
Based on the preceding discussion, it is clear that Dubai is an ideal site to establish a business, and registering a corporation in this city can be quite beneficial for business owners, particularly foreign investors.
How to Set Up an Offshore Company in UAE
Choose an Offshore Jurisdiction
First and foremost, you must select an appropriate offshore country that suits your requirements. Enlisting a local offshore agent registered with one of the three major authorities is critical for a successful UAE offshore business formation.
Choose a Business Name & Send in Your Application
Decide on a corporate name for your offshore business and register it with the relevant local government agency. The terms "Limited" or "Ltd" in the name of your UAE offshore business are required to denote its legal status as an offshore corporation. Next, fill out an application and collect any further paperwork.
Seek Expert Assistance
Working with a UAE offshore company formation professional who can manage all the essential paperwork ensures a seamless process. Experts can also assist with related tasks such as securing investor and staff visas.
Required Documents
Prepare the following documents before establishing an offshore business:
- Articles of Association copy
- Shareholders' passports and resumes
- Relevant Emirates ID cards
- Comprehensive business plan
- Certified bank statements (last 6 months)
- Proof of address (utility bill)
- Three possible business names
- Details about business activities
Offshore Access to Corporate Bank Accounts
Setting up an offshore bank account in the UAE is an easy task. A corporate bank account will protect your business operations and assist you in managing your finances. The UAE offers both business and private banking services for simplifying offshore accounts without trouble. Having an offshore bank account for your company is helpful in the long run because it allows for more international transactions.
The KYC (Know Your Customer) Process
When founding an offshore company in the UAE, you must follow a strict Know Your Customer (KYC) procedure. As a business owner, you are responsible for presenting the jurisdiction's regulatory authority with documentation such as passport copies, proof of address, bank reference letters, and investor information. The KYC procedure assists banks in verifying investor data while preventing potential identity theft, financial fraud, or money laundering operations.
UAE Jurisdictions Offer Offshore Company Formation
Of the seven Emirates, only three have the authority to incorporate offshore companies. These include Ajman Free Zone, Ras Al Khaimah, and Jebel Ali Free Zone.
Ajman Free Zone
Ajman free zone offers competitive and cost-effective offshore incorporation services that can help your business succeed.
Here are some aspects of the Ajman free zone that make it an attractive option for your offshore business.
- Establishing an Ajman offshore company is a cost-effective solution with minimum operational expenditures.
- Making modifications to your business structure is simple, with adjustments like adding a new corporate shareholder completed in as little as seven days.
- Offshore incorporation requires a minimum of one director and one shareholder, both of whom can be the same person.
Ras Al Khaimah International Corporate Centre (RAK-ICC)
Ras Al Khaimah has grown at an exponential rate, making it one of the most prospering Emirates in the UAE. RAK and Ajman have many characteristics, making them equally effective jurisdictions for foreign enterprises seeking to establish an offshore corporation.
RAK ICC is regarded as an excellent choice for the following reasons:
- The lack of a local shareholding requirement makes establishing a RAK offshore company easier.
- RAK offshore businesses are affordable and can be established within 7 days of application.
- RAK offshore corporations are permitted to purchase shares in local UAE businesses.
- Like Ajman, offshore incorporation requires one director and one shareholder.
- RAK offshore firms can now invest in real estate in the UAE without requiring a business license.
- Having a RAK offshore business allows you to open and manage multi-currency bank accounts in the UAE, making international transactions easier.
Jebel Ali Free Zone (JAFZA)
Jebel Ali is a significant trading center in the UAE, around an hour from Abu Dhabi. It was the first free zone in the UAE and is known as the Jebel Ali Free Zone (JAFZA). Businesses of all sizes can benefit from world-class infrastructure and services, allowing them to enhance their trading prospects both locally and worldwide.
JAFZA offshore corporation provides many of the same benefits as a RAK offshore firm, with a few minor variations:
- JAFZA offshore company incorporation costs more than Ajman or Ras Al Khaimah.
- To physically complete the offshore company incorporation process, shareholders must live or go to the UAE.
- A JAFZA offshore corporation must have at least one shareholder, one secretary, and two directors to be formed.
- You must provide an audit report of your finances and operations to the JAFZA authorities.
Advantages of Setting up an Offshore Company in UAE
There are numerous benefits to forming an offshore corporation in the UAE. Let's consider why offshore companies are so prevalent in global business.
- UAE offshore corporations provide more international business options, allowing entrepreneurs and businesses to reach new markets and customers.
- Investors in offshore company creation are not required to maintain a physical corporate location, giving shareholders more flexibility.
- Offshore businesses provide asset protection from creditors and legal claims through their corporate veil of legal liability.
- They also offer better financial privacy and secrecy to business owners.
- Offshore corporations are permitted to open multi-currency bank accounts, which not only facilitate international commercial transactions but also ensure fund security. They provide huge tax savings due to the UAE's offshore tax legislation.
Limitations of Starting an Offshore Business in UAE
Offshore corporations can be useful in a variety of ways, but there are also disadvantages. Let's look at some of the downsides of forming an offshore corporation in the UAE.
Not Qualified for Business Licence
There are numerous benefits to forming an offshore corporation in the UAE. Let's consider why offshore companies are so prevalent in global business.
Companies in the UAE have limited activities if they do not have a business license. Holding firms are classified as offshore entities for this reason. They are unable to conduct viable enterprises in the UAE or hire anyone who resides there. Furthermore, these firms cannot conduct business with UAE residents.
Limitations in Purchasing Real Estate
Many investors and entrepreneurs find that owning real estate in the Middle East is a profitable investment. Importantly, offshore firms registered in RAK International Corporate Centre and Jebel Ali Free Zone can purchase real estate assets. However, this does not apply to the Ajman free zone.
Restrictions on Trade outside the UAE
Business activity within offshore corporations is limited to a few specific business activities. Offshore companies can engage in a wide range of business activities.
This includes:
- International trade includes shipping activities.
- Property holding and intellectual property (IP) holding.
- Online advertising, general trading and distribution.
- Service Centre operations
- With these options for offshore enterprises to explore and exploit, success is virtually certain.
Importantly, offshore businesses are not permitted to engage in insurance, aviation, or media business operations, nor can they conduct business with other Middle Eastern companies.
Setup an Offshore Company in UAE With Us!
UAE remains the premier economic hub in the Middle East, attracting foreign investors to form offshore companies. Its performance in this area has allowed it to maintain a significant advantage over other competitors in the region.
Forming an offshore company in the UAE is an excellent approach to save money in the early phases of your business while focusing on long-term international expansion. One of the most advantageous aspects of establishing an offshore company in the region is the possibility to have a registered firm without incurring the expenditures connected with a physical location in UAE. You may take advantage of the city's location, business-friendly culture, and tax breaks fast and easily with an offshore corporation.
Offshore Company Formation (FAQ’s)
Offshore corporations are able to use the following corporate structures:
- Limited liability companies (LLCs)
- Limited companies
- Limited partnerships
Creating an offshore business here is more expensive than in other nations. Setting up an offshore firm in the UAE offers various benefits but requires a larger investment that is projected to cost well over AED1000.
Offshore corporations can now select the share capital of their limited liability company as a result of the 2009 corporations Law change. This means there is no stringent necessity to prove your start-up cash before starting your business.
The taxes in Dubai are extremely low. Most firms registered in Dubai do not have to pay taxes, with the exception of some that are required to pay a 5% tax based on their commercial activities.
DIFC stands for Dubai International Financial Centre, and it is one of the financial centres established in Dubai to conduct activities.
