Offshore Company formation in Dubai, UAE
Offshore Company formation in Dubai, UAE
Dubai has fully embraced the global business landscape, successfully creating an optimal environment for companies in offshore, free zone, and mainland sectors. The emirate has maintained high standards for its infrastructure and services. Investors worldwide are increasingly looking to establish offshore companies in Dubai for several compelling reasons:
- Business-friendly policies that facilitate access to international funding.
- Asset protection mechanisms, including the safeguarding of intellectual property from business activities.
- Tax-free revenues on foreign earnings supported by a stable legal framework.
- Gateway for global investors, enhancing access to international markets.
- Double Tax Treaty (DTT) agreements with over 40 countries, providing favorable tax conditions.
The Jebel Ali Free Zone (JAFZA) and Ras Al Khaimah (RAK) are two prominent offshore jurisdictions in the UAE, both offering “tax-free” environments with no income or corporate taxes and allowing 100% foreign ownership.
Offshore is a major jurisdiction for setting up a business, but what exactly is an offshore company?
An offshore company is a business entity established in a jurisdiction with low or no taxes, aimed at legally minimizing tax liabilities and enhancing wealth management for investors. Such a company operates outside its country of origin and can be set up in Dubai with a single shareholder, who may also hold shares in other companies. While it does not need to have a physical presence, it must be officially registered in Dubai.
Over the years, many entrepreneurs in Dubai have opted for the tax advantages offered by offshore jurisdictions to maximize their investments. Dubai has a longstanding reputation as a secure, tax-free environment that fosters diverse business opportunities, catering to both small and large enterprises
What are the different steps involved in offshore company formation in Dubai?
- Choose a Company Name: After determining the business activity, the next step is to select a name for your company. It’s essential to follow specific naming guidelines in the UAE, which are both strict and clear.
- Submit a Business Setup Application: Once the company name is chosen, applicants need to fill out an application form and provide supporting documents, including proof of address and identity for shareholders and directors, a well-prepared business plan, passport copies of shareholders and directors, and their CVs.
- Document Submission: After gathering all required documents, they must be submitted to the relevant authorities for review and approval.
- Prepare the Memorandum and Articles of Association: Following approval, the Memorandum of Association (MOA) and Articles of Association (AOA) need to be drafted in English. Once these documents are prepared, they will be reviewed by the authorities; if approved, you can proceed with your business.
- Open a Bank Account: The final step involves opening an offshore bank account, which facilitates easier transactions for business owners
What are the different steps involved in offshore company formation in Dubai?
- An offshore company allows for complete ownership by foreign expatriates, with the added benefit of 100% profit repatriation. These companies ensure full confidentiality and asset protection.
- Operating an offshore business in Dubai exempts it from annual accounting and tax obligations, thanks to the absence of corporate income tax, which greatly benefits business operations.
- Offshore firms are permitted to maintain multi-currency bank accounts, facilitating international transactions while ensuring the security of funds.
- Additionally, Dubai’s corporate documentation is recognized globally by banks, governments, and other organizations due to its multilingual nature.
- Compared to other business structures in the UAE, establishing an offshore company is a quick and straightforward process.
Request a Schedule For Free Consultation
Contact us via phone at +971585567272 or email us Send Us A Message
Offshore company in JAFZA
JAFZA offshore is the sole offshore jurisdiction in Dubai. The Jebel Ali Free Zone (JAFZA) stands out as an exceptional and highly favored location for business expansion due to the numerous opportunities and facilities it offers. JAFZA offshore serves as a global hub for commerce and manufacturing, ensuring complete confidentiality and privacy for its clients.
What are the documents required to set up an offshore company in JAFZA, Dubai?
- Passport copies of all shareholders
- CVs of shareholders
- Proof of address (such as a lease agreement or utility bills)
- A reference letter from a bank or a bank statement from the past six months, if necessary
- Three preferred names for the company
- The chosen type of business activity
