Every entrepreneur starts with a dream, no matter how big or small. And Dubai is a city of dreams, whether business, tourism, or a luxury life – this city has everything. In this blog, we will look at a specific kind of company formation in Dubai – an offshore company. In detail, let’s understand an offshore company’s functionalities and how to do an offshore company registration in Dubai.
Let’s start with the basics:
What is an offshore company?
An offshore firm operates outside of its home nation. Also known as an offshore company incorporation or an offshore company organization. It can be owned by a single person or by a group of business partners or shareholders. Simply put, an offshore company does business from a location other than its legal registration country.
The UAE’s two most important offshore jurisdictions are Jebel Ali Free Zone (JAFZA) and Ras Al Khaimah (RAK). Both are “tax-free” jurisdictions, meaning they have no income or corporate taxes and allow 100% foreign ownership.
Setting up an offshore business in Dubai has become a life aspiration for many, and the demand for offshore enterprises is increasing.
Let’s look at the benefits of offshore company registration in Dubai:
- There is no income, personal, or company tax, and import or export tax.
- Asset protection in UAE free zones with 100% foreign ownership
- Diversification of investments
- There are no currency limits
- Complete operational privacy and confidentiality
- Low operating costs combined with world-class banking
- Excellent investment management services
- There is no minimum capital required
- There are no office space requirements
- There are no infrastructural costs
- Bank accounts in multiple currencies
- Legal assets are guaranteed to be safe
- Assurance of investment security
- Access to a pliable regulatory framework
- Business-friendly legal system
- Strategic location
- A diverse, educated population
The UAE government provides various financial benefits to offshore corporations, including 0% tax exemption and customs-free taxation. Because of the benefits provided by the UAE, it has become the most dependable and active platform for corporations and organizations to establish their headquarters there.
The UAE is one of the fastest expanding and developing countries, with the ideal locations for new businesses.
Setting up an offshore company formation is an excellent strategy to begin benefitting and expanding as a commercial entity.
The characteristics of an offshore company in Dubai are as follows:
- There is no obligation for a corporate resident to serve as a director or shareholder
- There is no necessity to have a local sponsor or stakeholder
- Being able to keep UAE or international deposits and bank accounts
- There are no requirements to keep books and records
- Obtaining a license to perform banking and insurance transactions
- There is no need for office space in the UAE
- There is no necessity to have another business in the UAE
- A resident visa is not necessary
- Possibility of owning real estate property in the UAE
- There is no necessity for the shareholder or business owner to be physically present in the UAE for the company to be established
The rationale for this (offshore company) is to improve the nation’s wealth management as well as its economy. One of the primary reasons for forming an offshore company is to ensure the business’s financial security and anonymity.
Another motive is to benefit from the legal and certain tax decreases. Offshore enterprises can also build and grow their company without interruptions due to financial issues. The reduction of various sorts of taxes, including corporate tax, income tax, capital gains, property sales, and so on, is a major comfort for the owners of offshore company registration.
Documents Needed to Establish an Offshore Company in Dubai:
- Six monthly bank statements or an original bank reference letter (stamped by the bank)
- Address Proof ( Ex. Utility bills, etc..)
- The shareholders’ CV
- The shareholders’ passport copies
- Commercial Activity
- Trade name options (min. 3)
- Business plan (min. three years, however, this is not a must)
If you are a business owner wishing you set up an offshore company in Dubai, we recommend you take the assistance of professionals. Use the assistance of expert PRO services in Dubai, who can get you all your business licenses, visa services, and any paperwork.
