A company can be established offshore, which is away from the UAE mainland and not in a free zone. An offshore company is a legal business that is established with the intention of operating outside its registered jurisdiction or location of ownership. In the majority of cases, offshore companies do not need to occupy physical office space, but in turn, cannot undertake extensive business activities in the country of their origin.
Offshore company formation in UAE is a fast-growing sector of new business setup in the country.
For investors looking at offshore company registration in Dubai, favored considerations include the ability to create or maintain wealth, hold or protect property and other assets, and offer international trading, contracting, and consulting services from a single location.
There are several advantages to setting up an offshore company in Dubai, including:
- 100% foreign ownership: As an offshore company owner, you can have 100% ownership of your company without the need for a local sponsor.
- Tax exemption: Offshore companies in Dubai are exempt from taxes on income generated outside of the UAE. This means that you can keep more of your profits.
- Asset protection: Offshore companies offer a high level of asset protection, as the assets held by the company are separate from the personal assets of the owner.
- Ease of incorporation: The process of setting up an offshore company in Dubai is straightforward and can be completed quickly with the help of a registered agent.
- Business privacy: Offshore companies offer a high level of privacy, as the names of the company directors and shareholders are not publicly disclosed.
- International trade and investment: Dubai is a hub for international trade and investment, making it an ideal location for offshore companies to conduct business.
Overall, setting up an offshore company in Dubai can offer many advantages for entrepreneurs and businesses looking to expand their international presence and maximize their profits.
The registration process for setting up an offshore company in Dubai can vary slightly depending on the specific free zone you choose, but the general steps are as follows:
- Choose a registered agent: The first step is to choose a registered agent who will assist you with the registration process. The registered agent will act as your representative in all dealings with the relevant government authorities.
- Choose a company name: You will need to choose a unique name for your offshore company that complies with the naming requirements of the relevant free zone.
- Submit the necessary documents: You will need to provide certain documents to your registered agent, including copies of your passport and proof of address, as well as a business plan outlining your proposed activities.
- Obtain necessary approvals: Your registered agent will submit your application to the relevant free zone authority, which will review and approve it. You may be required to provide additional information or documentation during this process.
- Sign and submit the necessary documents: Once your application is approved, you will need to sign and submit the necessary documents to your registered agent. These may include a memorandum and articles of association, a lease agreement for your registered office, and other legal documents.
- Open a bank account: Once your company is registered, you will need to open a bank account in Dubai. Your registered agent can assist you with this process.
- Obtain necessary licenses: Depending on the nature of your business, you may need to obtain additional licenses or permits before you can commence operations.
Overall, the process of setting up an offshore company in Dubai is relatively straightforward and can usually be completed within a few weeks, provided all necessary documents are in order.
Frequently Asked Questions
An offshore company is a legal entity that is incorporated in a country other than the one in which its main operations are located. Offshore companies are typically established in low-tax jurisdictions or tax-free zones to minimize tax liabilities and take advantage of other benefits.
The benefits of setting up an offshore company in Dubai include 100% foreign ownership, tax exemption on income generated outside of the UAE, ease of incorporation, asset protection, business privacy, and access to a hub for international trade and investment.
No, offshore companies in Dubai are not allowed to conduct business within the UAE. They are intended for international trade and investment activities only.
The requirements for setting up an offshore company in Dubai include choosing a registered agent, choosing a company name, submitting the necessary documents, obtaining necessary approvals, opening a bank account, and obtaining necessary licenses.
The process of setting up an offshore company in Dubai can usually be completed within a few weeks, provided all necessary documents are in order.
Ongoing obligations for an offshore company in Dubai include annual renewal of the company registration, filing of audited financial statements with the relevant authorities, and compliance with all applicable laws and regulations. I hope these FAQs have been helpful in providing additional information about offshore company formation in Dubai. If you have any further questions, please don’t hesitate to ask.