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.
There are several reasons for offshore company incorporation in the UAE, with the primary one being complete confidentiality over the financial matters and increase in wealth without interruption.
What is offshore?
The moment we overhear the term offshore company we think of a business landscape away from the home country that provides tax haven.
- An offshore company is a wholly-owned LLC which is legally tax-exempt and has no annual accounting and tax obligations.
- 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 a 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.
Offshore Company UAE
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.
An offshore company in the UAE attracts many new entrepreneurs due to minimum setup cost and other related expenses.
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.
Offshore Locations in UAE
There are 3 offshore location choices for new entrepreneurs and investors and all the businesses have the benefit of tax exemption, no minimum capital required etc.
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.
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.
Ajman offshore is another prominent business spot in the UAE, offering several lucrative incentives along with a swift, inexpensive setup.
Activities Permitted in UAE Offshore
Opening a UAE offshore company is an ideal, tax-efficient, and cost-effective corporate structure for entrepreneurs who wish to conduct foreign trade. Offshore companies are in general used for
- International trading
- Holding company
- Shipping company
- Owning real estate
- Registering patents and copyrights
- International consulting services
UAE allows several activities that can be carried out by offshore companies operating the nations’ offshore locations.
- 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
These are the services that a company can carry out but outside of the incorporated location.
Documents Required for UAE offshore Business Registration
Offshore company registration in the UAE is initiated by one or more individuals who may be either natural or juristic, submitting an application form to the authorities of an offshore company, together with the relevant prescribed supporting documents.
Below documents are needed to be submitted to the registrar
- Passport copy and ID of shareholders and directors
- Proof of residence like utility bills, electricity bills etc.
- Power of attorney in favour to pursue the incorporation
- Bank reference letter
Offshore company Formation in UAE
Once you gather these documents, you can register your business. The steps include –
Confirming the Scope of Business Activity
The activity that you are going to carry out must be decided. It must also be mentioned in the application form
Deciding a trading name
Finalise a name in accordance with the activity you chose, keeping in mind the regulations for trade names.
Finalise the Directors, Shareholders, and Company Secretary
Make sure that you are clear with the shareholders and the management team.
Choose a Share Capital
Fix a share capital for your business. There is no standard share capital set for offshore companies in the UAE.
Apply with the Documents
Make sure all the documents are perfectly curated and the application form is included with the details of the shareholder, the number of shares projected to be held by them and the value of the shareholding. Besides the names and addresses of the directors, the name and addresses of the representative agents and any other particulars that the registrar may need must be submitted. The application form should also be followed by the offshore company’s proposed Memorandum and Articles of Association.
Bank Account Opening
After these steps are completed, and your business is registered, you can open a corporate bank account.
Role of Commitbiz
We are a registered company eligible to facilitate offshore companies set up 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 the entire company incorporation process from start to finish.
Extensive domain experience and in-depth local expertise help 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
Contact us for your UAE offshore incorporation
Can I open a multi-currency account for my offshore business in the UAE?
Yes, you can.
How long does it take to incorporate a business in the UAE offshore?
It does not take more than 2 days.
Do I have to have the physical premise for the offshore company?
Not necessarily; you can only incorporate your business without having any business entity in the UAE
Which documents are accepted as proof of residence for offshore incorporation?
ID Card, UAE Residence visa, utility bills like gas bills etc. (most recent)
How many countries are there with the avoidance of double taxation policy in the UAE?