Offshore Company formation in Dubai, UAE
Dubai has opened its doors wide to the business world. The emirate has done a tremendous job in building the ideal workspace, be it in the offshore, free zone, or mainland. They have not compromised on the quality of the infrastructure or any other service for that matter. Investors from across the globe are planning for offshore company formation in Dubai for various reasons, which are as follows:
- Business-friendly policies with access to global funding.
- Providing a mechanism for separating or protecting assets, such as intellectual property, from running businesses.
- Providing tax-free revenues on overseas earnings with a stable legal system.
- It acts as a doorway for global market investors.
- Over 40 nations have Double Tax Treaty (DTT) arrangements with the UAE.
Jebel Ali Free Zone (JAFZA) and Ras Al Khaimah (RAK) are the two main offshore jurisdictions in the UAE. Both of these are “tax-free” jurisdictions, meaning they have no income or corporation taxes and allow 100% foreign ownership.
Setting up an offshore business in Dubai has become a life goal for many, and the demand for offshore companies is on the rise.
Offshore is a major jurisdiction for setting up a business, but what exactly is an offshore company?
An offshore company is a business entity that is formed in a low-tax or no-tax jurisdiction with the intention to legally minimize the tax payment and enhance the investor‘s wealth management and it operates outside of its country of origin. An offshore company in Dubai can have a single shareholder and can even have shares in other companies. It need not be a physical entity but must be registered in Dubai.
Businessmen in Dubai have increasingly chosen tax perks over the years, and they choose to invest in an offshore jurisdiction with the intention of benefiting from them. Dubai has a strong tradition of being a secure, tax-free nation and has been a fertile ground for many kinds of businesses, be they small or big.
What are the different steps involved in offshore company formation in Dubai?
A physical entity is not required for an offshore company, but it must be registered in Dubai. It offers the convenience of having a virtual office in Dubai, making it an ideal choice for businesses looking to expand internationally.
In order to establish an offshore business in the United Arab Emirates, one must go through a series of procedures. The procedure of forming an offshore company in Dubai is clear and simple.
- Select a company name
After deciding on the business activity, it’s time to give your business a name. There are a few things to consider before naming a business in the UAE. You must adhere to a set of naming guidelines that are both strict and straightforward.
- Submit an application for business setup
After deciding on a company name, applicants must complete an application form and submit a collection of supporting papers, which include address and identity proof of shareholders and directors, well-drafted business strategy, passport copies of the shareholders and directors and CV of the shareholders.
- Submission of the Documents
Following the collection of the necessary documents, they must be presented to the appropriate authorities, who will assess them and provide the necessary permissions.
- Presentation of the Memorandum and Articles of Association
Following that, the Memorandum of Association (MOA) and Articles of Association (AOA) must be written in English. After the paperwork has been prepared, they are inspected by the authority; if approved, you can start your business.
- Open a Bank Account
The final step is to create an offshore bank account, which allows business owners to conduct transactions with more convenience.
What are the advantages of offshore company formation in Dubai?
- Offshore company ensures full ownership for foreign expatriates with100% repatriation of profits. Offshore companies provide complete confidentiality and security of assets.
- An offshore business operating in Dubai is free from all annual accounting and tax responsibilities.
- The no-corporate-income-tax law benefits offshore business operations.
- Multi-currency bank accounts are permitted for offshore firms, facilitating international commercial transactions and ensuring money security.
- Banks, governments, and other organisations across the world recognize Dubai corporate documentation because they are multilingual.
- When compared to other forms of businesses in the UAE, forming an offshore company is fast and easy.
Offshore company in JAFZA
JAFZA offshore is the only offshore jurisdiction in Dubai. Because of the numerous chances and amenities it provides, the Jebel Ali Free Zone (JAFZA) is an excellent and most favoured location to grow your business. JAFZA offshore is a worldwide commercial and manufacturing hub that guarantees complete confidentiality and privacy.
What are the documents required to set up an offshore company in JAFZA, Dubai?
In order to set up an offshore company in Dubai, all you have to do is fill up an application and provide the necessary (given below) documents:
- Passport copies of all shareholders
- CVs of shareholders
- Address proof (it could be the lease agreement, utility bills, etc.)
- Reference letter from the bank or bank statement of the past 6 months, if required
- 3 desired names for the company
- Type of business activity chosen
It usually takes 10-12 working days to set up an offshore company in JAFZA.
Business setup service provider for offshore company setup in Dubai
Dubai maintains its dominance in the Middle East by encouraging international investors to take advantage of various company launch structures, such as offshore firms. Because they are owned and managed by foreign investors, most of whom go into worldwide markets, offshore firms are also known as non-resident companies or international business companies.
As a result, offshore company formation in UAE is suitable for investors or entrepreneurs seeking worldwide corporate control.
The majority of worldwide business investors choose to continue with the help of business setup service providers who have a recognized understanding of the company formation procedure. Moving forward with an approved specialist firm can complete the procedure without making any mistakes.
Why Choose Jumeira Consultants?
A business consultant or a business setup service provider will assist in completing the entire business registration process and will make things easier for you. They will look into the required documents and do the needful and will even get the approval form.
Jumeira Consultants have been helping clients with offshore company formation in Dubai for years and with our ample knowledge about the emirate and the jurisdiction, we can be of great help to you. We also provide investment options for offshore companies. Jumeira Consultants have a team of experienced and professionally qualified personnel to look into the requirements of our clients. We ensure to offer accurate and timely services and never compromise on the quality of our service. Jumeira Consultants has been updating ourselves with the changes in company incorporation rules and regulations as well.
If you’re interested in setting up an offshore company in the UAE, please contact us right away; we’d be pleased to assist you.
Apart from business setup services, we offer business consultancy services, mergers and acquisitions, tax residency certificates, trade licenses and many other services.
Offshore Company Formation FAQs
Is it feasible to obtain a UAE resident visa through an offshore company in the UAE?
No, UAE visas can only be issued by Free Zone and Onshore Companies.
What businesses are of importance to a UAE Offshore company?
International trade, property investing, shipping business and distribution service center business operations are utmost important in offshore jurisdiction.
Which are the important jurisdictions for offshore business setup in UAE?
Ras Al Khaimah (RAK), Ajman Free Zone, and Jebel Ali Free Zone (JAFZA) are the three main jurisdictions in the UAE that provide offshore businesses.
What are the advantages of starting a business in dubai offshore?
All are “tax-free” jurisdictions, meaning they have no income or corporation taxes, allows 100% foreign ownership, easy setup and low operating, maintenance cost.
How long does it take to set up a JAFZA Offshore business?
Setting up an offshore business in JAFZA normally takes 10-12 working days.
Is there any minimum capital required for starting an offshore company?
No minimum capital is required.
What businesses are not permitted for an offshore company?
Managing business with firms in the UAE, insurance, media and aviation businesses are also not permitted.
Do trade license is needed to conduct business in offshore?
It does not require a business or trade license to conduct business in the UAE, unlike an onshore company.
Is it possible to conduct business for offshore companies with persons residing in the UAE?
No, it is not possible.
Do multi-currency bank accounts permitted for offshore companies?
Yes, it is permitted for International transactions.
How Jumeira Consultants assist in the offshore company formation?
With deep understanding of the emirate and years of expertise in the company, Jumeira Consultants has a dedicated and highly skilled workforce to give services to our clients in all of their demands. We will be the leading company formation service provider in Dubai, assisting with all aspects of offshore business creation.