Offshore Company Formation
An offshore company in the UAE is the most beneficial way to start or expand your business. Since the emergence of offshore company formation in Dubai or in the UAE in 2003, the UAE has become an ideal hub for businesses and MNCs around the world. Offshore companies in the UAE are well recognized and duly supported by the UAE government; they not only receive tax and custom-free benefits but also other financial advantages. Due to this, the UAE has become one of the most dynamic countries for companies to set up their headquarters. Being one of the fastest growing in the world and proven to be one of the best spots to start a business, an offshore company formation in the UAE provides for all basic and advanced amenities for a business.
What is an Offshore Company?
An offshore company can be owned by individuals or corporate bodies and is a business entity which does not carry out any substantial business activity in its country of origin. Also known as non-resident company, an offshore company cannot occupy an office space in the UAE.
Such a company is framed under the no-tax jurisdiction law with the sole purpose of enhancing one’s wealth management and reducing any kind of tax payment legally. There are several reasons for offshore company incorporation UAE, with the primary one being complete confidentiality over the financial matters and increase in wealth without interruption. Additionally, offshore companies have the provision of cutting down or eliminating different types of tax payments such as capital gains, death duty, value added tax (VAT), profits on business earnings, property sales, etc.
Salient Features of an Offshore Company in UAE
An offshore company in Dubai, RAK offshore company or any other offshore company in the UAE has the following features:
- Flexibility to have a non-UAE, UAE, or corporate resident, as its director or shareholder
- Flexibility to maintain UAE or worldwide deposits and bank accounts
- No obligation to maintain its books and records
- Need for a special license to conduct banking and insurance business
- No need for the shareholder/director to be physically available in the UAE for company incorporation
- No need for a physical office in UAE
- No need to carry on business within the UAE
- No need to obtain UAE residency visa
- With prior authorization from RAK Investment Authority, flexibility to own real estate property in the UAE
Activities That Can Be Carried Out by an Offshore Company in the UAE
- Advisory services
- Buying, holding or selling stakes of companies
- Commission Agents or intermediary brokers (IBs)
- Consulting services
- General trading activities
- International and professional services
- Investments and joint investments
- Owning property
- Shipping and ship management
Why Choose an Offshore Company?
Offshore company formation in the UAE lets you run business in a profitable way and you have 100% ownership your assets in the UAE. Other than this, you can get to avoid certain procedures in company formation and avail lucrative tax benefits.
There are other reasons as well to opt for an offshore company formation in the UAE:
Business can be structured so that profits are realized in ways that minimize their overall tax liability.
The name of the underlying principle may be kept out of documentation by carrying out operations in the name of an offshore company.
3. International Trade
An offshore company would be a good pick for those who want to do international business along with other investments.
4. Property Transfer
When the owner sells the property; a certain percentage of its value may be charged by the authority. This transfer fee can be easily avoided by selling the company itself.
5. Multiple Investors
Very few property developers around the world allow for more than a single property owner. In case of an offshore company in UAE, however, the number of shareholders can be 1-50, and the company owns the property.
6. Bank Account
Many of the international and local banks operating in UAE offer offshore corporate bank accounts.
7. Economic Stability
There is availability of advanced banking system, latest telecommunication facilities, flexible legislative framework and simple incorporation & filing requirements for offshore companies.
Advantages of Offshore Company Formation in UAE
Entrepreneurs, start-ups or a big MNC opt for an offshore shore company as is gives them an easy access to another jurisdiction without unwarranted red tape and bureaucracy. An offshore company in the UAE attracts many new entrepreneurs due to minimum setup cost and other related expenses. Besides these, the other benefits of having an offshore company are:
- Complete foreign ownership in free zones, without the requirement of the involvement of any UAE national as a shareholder or sponsor
- 100% exemption from import and export taxes
- Zero income tax, personal tax, and corporate tax
- Freedom of complete repatriation of capital and profits
- Asset protection and investment diversification
- Complete anonymity, confidentiality and privacy in operations
- Easiness in opening a corporate bank account in Dubai
- Simplicity in international operations
- Easy procedures for shares transfer
- Income even from a taxable jurisdiction of an offshore or holding company is not taxable
- Low operational costs, with world-class banking and investment management services
- The minimum number of company directors or shareholders required to form an offshore company is just one
- No minimum capital requirement
- Multi-currency bank accounts with the placement of funds in any foreign bank are permitted
- No foreign currency restrictions
- No office space requirements, and low infrastructural costs
- Value-added taxes (VAT) or taxes on capital gains or withholding tax are not applicable
- Guaranteed protection of legal asset and investments
- Proximity to the Gulf and global markets
- Swift incorporation within 2-3 working days
Offshore Company Formation in the UAE
With respect to the number of directors, minimum share capital required, number of shareholders, etc., there are distinct regulations and requirements of an offshore jurisdiction, which vary with location. Similarly, there are regulations that define activities permitted or restricted to an offshore company, names that are allowed, permissible suffixes (‘Ltd.’, ‘Inc.’, etc.). These are some of the many things that we take into consideration for offshore company incorporation in UAE for our clients.
All the business benefits like tax exemption, no minimum capital required, and other benefits are provided in every offshore location in the UAE. There are 3 offshore location choices for new entrepreneurs and investors:
1. Dubai Offshore
In the entire Middle East, offshore company formation in Dubai (JAFZA) is the most popular because it is the most preferred place for starting a first offshore company in the UAE.
2. RAK Offshore
One of the ideal spots for your company is RAK offshore, and we can guide you with everything you need to know about RAK offshore company formation.
3. Ajman Offshore
Ajman offshore is another prominent business spot in the UAE, offering several lucrative incentives along with a swift, inexpensive setup.
Role of Commitbiz
Offshore company formation is ideal for international business, as international laws govern offshore companies and no local rules are applicable to them, which ensures that their assets are fully protected with free money repatriation and no taxation. Therefore, we at Commitbiz suggest our international clients to opt for offshore company setup in the United Arab Emirates.
We are a registered company eligible to facilitate offshore company setup in Dubai, Ras al-Khaimah and Ajman for global entrepreneurs. Our business development team excels at minimizing corporate taxes, protecting assets and limiting liabilities for our clients, and takes care of entire company incorporation process from start to finish.
Extensive domain experience and in-depth local expertise helps us to understand the unique needs of our client’s business, and provide them a trouble-free and customer-friendly working environment. We act as the registered agent for our clients in the UAE and help them with:
- Filing with the Registrar of Companies (ROC)
- Obtaining an incorporation certificate
- Getting the office facility registered in Dubai with PO Box
- License renewal
- Opening a multi-currency bank account in Dubai
- Drafting the Memorandum and Articles of Association (MAA)
- Preparing registration forms
We provide strategic business inputs, handle legal documentation formalities, and provide state-of-the-art amenities at cost-effective rates for your unhindered business growth in the UAE. Contact us for your offshore company setup requirements; our team will be glad to assist you.
An offshore company, also referred to as a non-resident company, is a business entity not engaging in considerable business activity in its place of origin.