Setting up an off-shore company in Dubai, UAE

A common choice for investors wishing to expand their global trade is opening an offshore business in the United Arab Emirates. An offshore business formation in Dubai is appropriate because it’s economical and tax-efficient. Non-resident “paper” firms are another term for offshore businesses. They permit business owners with no administrative duties to operate in the Middle East and North Africa (MENA) regions. Furthermore, full ownership Limited Liability Companies that are tax-exempt and have no yearly accounting or tax requirements are also considered offshore firms.

Offshore companies often fulfill the following purposes:

· International trading

· Holding company

· Shipping company

· Owning real estate

· Registering copyrights & patents

· International consulting services

Regulations for international company registration

Despite the simplicity of the UAE offshore company incorporation process, corporate organizations must bear the following in mind:

· First, there is no minimum share capital requirement.

· You will need at least one shareholder and director.

· At the time of allocation, all shares must be fully paid. UAE does not allow bearer shares or differential classes of shares. However, investors do not need to deposit their capital in banks.

· UAE allows for 100% foreign ownership of your offshore company incorporation along with 100% tax and duty exemption costs.

· You will be eligible to open a corporate bank account in Dubai, UAE

· A Dubai offshore company must appoint a registered agent in the form of legal firms, auditors, consultants etc., from a pre-approved list maintained by UAE free zones.

· A UAE offshore company falls under the domicile of UAE free zones.

· Dubai offshore company incorporation can be done remotely without the physical presence of the investors. However, documents will have to be signed in the registered agent’s office only.

· In case of suspicions arising, the authorities concerned can request audited financial statements.

Difference between offshore and free zone company setup

UAE offshore businesses and UAE free zone businesses are not the same. Legal entities known as offshore firms are established primarily with the goal of conducting business outside of their registration jurisdiction and/or the place where their ultimate ownership is located. Free zones, on the other hand, are onshore entities that are authorized to conduct business within the United Arab Emirates and grant UAE residence to both shareholders and employees.

Benefits of registering an offshore company in Dubai

Foreign companies may register their UAE offshore business for a variety of reasons. The following are a few main advantages of an offshore company structure:

· They allow entities a foot into international market expansion

· Stability and access to an economically friendly legal system

· Flexible regulatory structure

· Tax neutrality in international earnings in terms of personal or company income, capital gains, inheritance taxes etc. (dependent on jurisdiction)

· Increased access to global funding

· Separation and protection of assets (like intellectual property) from operating entities

The UAE has three principal jurisdictions that allow offshore company formation:

· Jebel Ali Free Zone Authorities (JAFZA)

· Ras Al Khaimah (RAK)

· Ajman Free Zone

JAFZA and RAK are the most well-liked of these. Both allow 100% foreign ownership and are “tax free” jurisdictions. In addition, the UAE and more than 90 other nations have Double Tax Treaty agreements. In order to do worldwide business, offshore firms can also create multi-currency accounts in the United Arab Emirates. They might not be able to have physical locations in the UAE or conduct business with UAE citizens, nevertheless.
Although each of these zones has advantages of its own, Ras al Khaimah is more affordable. Nonetheless, the only offshore organization that permits participants to lawfully acquire real estate in Dubai is JAFZA. An authorized registered agent must be appointed by both JAFZA offshore corporations and RAK international firms.

JAFZA international company incorporation: Features & benefits

Under the Jebel Ali Free Zone Offshore Companies Regulations of 2003, the Jebel Ali Free Zone Authority (JAFZA) began the process of incorporating offshore companies in compliance with the Dubai government.

JAFZA offshore company formation : Key features

• Offshore businesses allow corporate shareholders in addition to a minimum of one shareholder. If any shareholders are foreign corporations, they must present authenticated copies of their company documentation.

• A minimum of two directors are required; corporate directors are not permitted. Public registers do not contain director information.

Every offshore business needs to have a secretary. A director of a firm may simultaneously serve as the secretary.

• There are no minimum share capital requirements for JAFZA.

•Accounting documents going back up to ten years from preparation are required of all JAFZA offshore businesses. A company auditor from a list of approved auditors must also review and report on these accounts.

JAFZA offshore company formation : Benefits

• 100% foreign ownership of your offshore business

• Full permission to own real estate in Dubai (free zone and developer permission required)

• Permission to own shares in free zone and onshore LLC companies

• Hold multi-currency bank account for international transactions also

• Shareholders and directors can choose not to disclose themselves on a public register

RAK international company incorporation: Features & benefits

The International Company Structure was introduced by the government of Ras al Khaimah in 2006. They are governed by the Ras Al Khaimah Free Trade Zone Authority International Companies Regulations 2006, and are also referred to as the RAK Offshore Company.

RAK offshore company formation: Key features

• RAK Offshore firms are allowed to have corporate shareholders in addition to the minimum requirement of one shareholder. If any shareholders are foreign corporations, they must present authenticated copies of their company documentation.

• Corporate directors are not permitted, but you must have at least one director. The director’s information is not available on public registers.

• A secretary is required for all RAK offshore businesses. A director of a firm may also function as the company secretary.

• There are no minimum share capital requirements for RAK.

• Accounting records going back up to seven years from preparation must be kept up to date by all RAK offshore firms. But there’s no requirement for these accounts to be registered with RAK authorities.

RAK offshore company formation: Benefits

• 100% foreign ownership of your offshore business

• Permission to own shares in free zone and onshore LLC companies also

• Among fastest company incorporation; typically, up to 1 week

• Hold multi-currency bank account for international transactions