Offshore company setup in Dubai is a good choice for those looking to leverage the city’s ideal geographic location for reaching out to global markets. Dubai is strategically position between Europe, Asia, and Africa. Also, the city has one of the most advanced infrastructure and logistic system in the world. These advantages along with the tax favourable environment, make it a perfect location for registering an offshore company.
However, there are certain regulations and laws in UAE meant specifically for the offshore companies that must be met. In this guide we will be looking at the most essential aspects of offshore company formation in Dubai, UAE.
What is an offshore company in Dubai
An offshore company refers to a company that is incorporated in Dubai, UAE, but whose operations lie outside the boundaries of the Emirates. In fact, offshore company are prohibited to conduct any business activity to have a physical office within the UAE itself. However, they can conduct international operations. Offshore company formation in Dubai remains a very popular choice among the overseas investors who want to create a global brand.
The investors who want to start an offshore company setup in UAE must take help from a registered agent who has presence in UAEand facilitates the process of offshore company registration. The physical address of the registered agent will be the address of the offshore company
Benefits of offshore company formation in Dubai
There are many reasons for the popularity of offshore company setup in UAE among the foreign investors, including:
Complete ownership:
As a foreign investor you get to enjoy 100% ownership to your business.
Huge tax benefits:
You can save significantly through favourable sales, income, and other tax rates.
Asset protection:
Offshore jurisdictions in Dubai have robust asset protection laws in place that helps keep the business asset safe and secure.
Easy setup:
The process of offshore company formation in Dubai in itself is quite simple and straightforward compared to other business models.
Minimal investment:
You do not need any physical presence and office infrastructure which brings down the investment costs significantly.
Bank account access:
You can open a business bank account and do transactions in multiple currencies without any restrictions.
Global market access:
Dubai favourable location makes access to markets in Asia, Europe, and Middle East easy.
Stable and secure economy:
Political, social, and economic atmosphere of UAE is very stable and facilitative.
Major offshore jurisdictions of the UAE
Three jurisdictions in Dubai allow for offshore company registration:
Ajman offshore:
Strategic location, dynamic ecosystem and flexible regulation is what you will find in Ajman freezone. Ajman Freezone Authority (AFZA) regulates all the offshore companies in this zone.
RAKICC offshore:
Ras Al Khamaih International Corporate Center (RAKICC) is known for its cost effective, transparent, and secure offshore company formation solutions. RAK ICC Business Companies Regulations 2018 is the law governing offshore companies here.
JAFZA offshore:
Jebel Ali Freezone is a famous hub for global trade and offers excellent solutions to offshore companies. Jebel Ali Freezone Authority governs the offshore companies in this zone.
Documents required for offshore company formation in Dubai
The documents you need depends on whether you are an individual shareholder or corporate.
For individual shareholders:
- Application form
- Passport copy with validity of minimum 6 months
- Visa page copy, if applicable
- Emirates ID, if applicable
- Passport sized photographs
- Three name choices
For corporate applicant:
- Certificate of registration of company attested by UAE embassy in home country
- Good standing certificate of the company, duly attested
- Memorandum and Articles of Association of the company
- Passport, visa, and Emirates ID copy of company manager
- Bank reference letter
- Boards resolution
- Three name choices
Please note that the documentation is subject to changes made by the respective jurisdiction authority.
Process of UAE offshore company formation
Follow these simple steps for offshore company formation in Dubai:
Identify a registered agent:
First of all, you need to identify and partner up with the right registered agent for the jurisdiction where you want to incorporate the offshore company.
Choose your business activity:
Next comes the identification and selection of the right business activity for the business. Be mindful that the activity must be allowed by the respective offshore authority.
Register a trade name:
You must choose a lawful and unique name for your business. You can propose three names out of which one will be registered.
Submit documents:
Finally, you can gather all the essential paperwork and submit them along with the application form to the respective offshore authority. After payment of the fees, you can obtain your registration certificate.
Open bank account:
Once you receive back the company documents, you can open a business bank account for your offshore company setup in Dubai.
Cost of offshore company formation in Dubai
Cost of offshore company formation can start from anywhere around AED 19,000*. However, you should note that the actual cost depends upon a lot of factors like your selected jurisdiction, number of visas being applied for, etc.
It is best to check with the professional business setup consultants in Dubai for the updated costs.
Simplify your offshore company setup in Dubai
Starting an offshore company in Dubai opens doors to many opportunities and endless possibilities. However, offshore company setup in UAE needs proper attention to documents and approvals. We recommend getting in touch with professional experts who can help you navigate the legal landscape of UAE smoothly.
One such expert is Dubiz Business Setup. They have years of experience in business setup in Dubai and UAE. Be it freezone, mainland or offshore setup, they can handle everything with utmost expertise. From licensing to company registration, visa, and bank account handling, they do it all. Book a free consultation with them today!
