An offshore company in the UAE is a legal business set up that operates outside the location of its ownership. Offshore companies are one of the best choices for foreigners as they can conduct trade outside of Dubai. These companies come with many benefits, such as foreign ownership, tax benefits, etc.
Offshore licensing officials administer and regulate the offshore regions. Dubai’s strategic position also provides a rich atmosphere for all types of companies. Now, we will discuss what is dubai offshore company incorporation and how you can set one up.
What is Offshore Company in UAE? And How it is Registered
An offshore company in Dubai is a legitimate entity that is doing trade outside of its registered location. Offshore companies enjoy many tax benefits and reduced regulations. To set up your offshore company in the UAE, you need to follow the steps mentioned below.
Appoint a Certified Agent
It is crucial to appoint a certified agent according to your offshore area. When selecting an agent, it is important to consider their experience and understanding of the market.
Choose a Company Name
Choose a suitable name for your company and apply for approval from the offshore authorities.
Select a Trading Activity
After the company name approval, select appropriate trading activities that you want to carry out for your company in the future.
Investment Decision
It is important to decide the amount of investment you want to make, although there’s no minimum limit for investment for the offshore company setup.
Shareholder Requirement
Your offshore company must have a shareholder and an administrative assistant. You can select a corporation or an independent person for this task.
Submission of Documents and Application form
Submit all the required documents along with the application form to the relevant authorities for attestation and approval. After that, submit your fee and obtain a certificate of incorporation.
Open a Commercial Bank Account
After the submission of documents, Open a Bank Account for your offshore company’s financial transactions in Dubai.
Follow all the necessary steps mentioned above in order to start your offshore company in Dubai.
Benefits of Offshore Company in Dubai
Dubai offshore company incorporation brings a great deal of benefits, which we will break down below.
Global Trade Opportunity
With an offshore company set up, you can easily perform trade activities and financial transactions globally.
Real Estate Ownership
If you have an offshore company in Dubai, you are allowed to buy property in the designated areas set by offshore authorities.
Conduct Licensed Activities
With an offshore company, you can provide consulting services to your customers globally. You can manage these activities remotely from any part of the world.
Copyrights and Permits
You can register copyrights and permits of different kinds under the name of the Offshore company setup.
Multiple Investments
An offshore company set up in the UAE allows the individual partner to invest in multiple campaigns at a time. The shareholders’ names can be confidential, and the name of an offshore company can be used.
Some other benefits include:
- Property protection
- 100% foreign ownership
- Invoicing Foreign client
- Opening bank account
- Company set up without paying taxes
- Flexible capital investment
Documents Required for Offshore Company in Dubai
The document’s requirements are different for independent stockholders and commercial applicants. We will break down both of them separately.
Required Documents for an Independent Applicant
- Passport photocopies and CVs of all shareholders
- Proof of residency via bills
- Reference letter from bank
- Selected name of your offshore company
- Selected business activities of your offshore company
- Required Emirates ID card
Required Documents for a Commercial Applicant
- Attested certificate of company registration
- Attested certificate of good company repute
- Articles and Memorandum of Association
- Reference letter from bank
- Official board statement for registration of company and appointment of Company executives.
Once all of these documents are submitted and the fee is paid, the offshore authorities will issue your company’s certificate of incorporation.
Cost of an Offshore Company in Dubai
The cost of setting up an offshore company in Dubai ranges between AED 10,000 and AED 40,000. This cost depends on the nature of business activities, the number of shareholders, and their visas.
Different Jurisdictions for Offshore Company in Dubai
Three emirates are given the authority to start an offshore company. These jurisdictions are Ras Al Khaimah, Jebel Ali Free Zone, and Ajman Free Zone.
Ras Al Khaimah International Corporate Centre
Ras Al Khaimah (RAK ICC) is a business entity and one the most prosperous emirates in Dubai due to its ideal location. It is one of the best choices for multinational corporations when setting up their offshore company in the UAE. The reasons for its popularity are explained below:
- There’s no obligation of a local sponsor for the set up of an RAK offshore company
- RAK offshore companies can invest in real estate without a business license
- The certificate of incorporation is granted within a week of applying
- RAK offshore can purchase the shares of local businesses in Dubai
- The cost of an RAK offshore company is about AED 7,500
- Without going there in person, you can set up your offshore company in UAE with the help of a UAE national
- You are allowed to have a bank account that helps you with international customer transactions.
- RAK offshore companies are not required to present yearly audit reports of the company
Other than that, with an RAK business set up, you can register your private boats in Ras Al Khaimah. It also has an easy authorization process and cost-effective prices.
Jebel Ali Free Zone Authority (JAFZA)
Jebel Ali’s free zone authority was the first free zone established in the UAE. It is a prime location for small and large businesses to develop their businesses in the UAE and international markets. The benefits of opening a JAFZA offshore company are discussed in upcoming lines.
- JAFZA offshore company setup requires one shareholder, one assistant, and two directors
- The cost of JAFZA company set up is more than Ras Al Khaimah
- For the company registration process, the shareholders are required to stay or visit Dubai
- JAFZA offshore companies are required to submit a yearly audit report to the authorities
- You can get a workplace for your company or own real estate in the areas authorized by the JAFZA authorities.
- You can open a bank account for your company’s financial transactions.
Other advantages include getting professional services from legal consultants, holding meetings of shareholders and directors in the UAE, and authorization to become shareholders of other free zones and LLC Companies.
Ajman Free Zone Authority
Ajman Free Zone is a dynamic and profitable dubai offshore company incorporation. It operates under the control of Ajman authorities, which have no tax policy. The offshore companies in Ajman authority are private and secure. Now, we will discuss the major benefits of opening a company in the Ajman-free zone.
- It is a cost-effective and beneficial business set up for foreigners who want to open an offshore company in the UAE.
- You are required to have one shareholder and one director for your company
- The Ajman offshore company incorporation is the most swift and completed in just two days
- The cost of Ajman offshore company is about AED 7,500
- You are not required to have a physical workspace for operating your company.
Other benefits include easy bank account opening, no yearly audit report required to be submitted, and maintenance costs that are simple and low-budget.
Frequently Asked Questions
CAN OFFSHORE COMPANIES APPLY FOR RESIDENCE VISAS IN DUBAI?
No, the shareholders and company members of an offshore company are not eligible to apply for residence visas in Dubai as it is considered an entity not belonging to the Emirates.
HOW LONG DOES THE REGISTRATION PROCESS FOR AN OFFSHORE COMPANY TAKE?
The registration process of an offshore company in the UAE is completed in a week after the required documents are submitted.
IS IT OBLIGATORY TO VISIT THE UAE TO REGISTER AN OFFSHORE COMPANY?
No, you are not required to visit the UAE to register your offshore company. You can hire a legal agent in Dubai to do the job.
Summary
To summarize, Dubai Offshore Company Incorporation is the best choice for foreigners who want to set up their business in the UAE. They do not have to have a physical office space to run their company.
This setup is cost-friendly and has the potential to grow internationally. The tax-free policy is another huge benefit, as you can save all the profits you have earned.
Alriyady Auditing & Accounting is a certified company that deals with auditing and accounting in the UAE. We provide auditing, taxation, and Accounting Services to private and public firms in Dubai. For a smooth business setup in Dubai, it is highly suggested that you refer to our professional team from aauditing.com.
