Entrepreneurs and investors look for favorable business ecosystems to launch their new ventures or expand their existing businesses. When it comes to growth opportunities, infrastructural development, resource availability, etc., only a few countries can match the standards set by the UAE.
If you’re looking for offshore company formation in Dubai, you’ll need the help of business consultants who’ll guide you through the process. Offshore companies enjoy several exclusive benefits, and company formation in Dubai doesn’t get any simpler than an offshore setup.
How to open an offshore company in the UAE?
1. List down your business activities
What would be the structure of your offshore company? Are you looking for a sole proprietorship business, or you want to go for an LLC company formation in Dubai? The structure of your company has a major role to play in the company formation process. Once finalized, you need to list down all the activities that you wish to carry out while running your offshore company. The regulatory authorities provide a comprehensive list and all you need to do is pick the ones that match your requirements.
2. Reserve a trading name
Trade name reservation is a critical step with regards to offshore company formation in Dubai. You need to come up with 3-4 preferred names and submit this list to the concerned department. Ensure that you adhere to all the naming convention guidelines. Refrain from using derogatory terms or words that are controversial or insulting in nature. Furthermore, you need to use the full name of a person if you wish to keep that as your legal trading name.
3. Choose your preferred location
There are several offshore company formation opportunities in the UAE from a location’s perspective. You can select JAFZA if your primary business activity is the trading of goods since this zone has easy access to various shipping docks and airports. If you want to enjoy a cost-effective company establishment, you can choose the RAK offshore company formation setup. Furthermore, there are numerous other options like Ajman offshore, Dubai offshore, and more.
4. Application submission
Once you have finalized your company’s structure and location, it’s time to file-in the application. You need to be ready with all the documents and approvals. Moreover, ensure that you never breach the mentioned deadlines and pay all the due fees within the specified timeframe to quickly wrap up the legal formalities. The governing authorities then evaluate your application and approve it if everything’s in order.
5. Open a bank account
You’ll need to open a corporate bank account in the UAE to manage your monetary transactions, Collaborate with a bank that offers reliable services and is beneficial in the long run. That‘s it. You can now apply for any additional approval (if needed) and get started with your business activities.
Benefits of establishing an offshore company in Dubai
1. 100% business ownership
There’s no need to search for a local sponsor to form an offshore company in Dubai. This implies that foreign investors are allowed to enjoy 100% ownership rights in their business. Moreover, they don’t need to have a physical location as opposed to company formation in the mainland. It provides a great deal of flexibility to offshore companies. They can operate smoothly without much hassle and hindrance.
2. Privacy is maintained
The identity of owners and applicants is kept confidential during the registration process of an offshore company. Therefore, foreign investors who don’t want to reveal the full information need not worry about data privacy for offshore company formation in Dubai.
3. Corporate tax exemption
Dubai is one of the favorite places for foreign investors to start their business. One of the key reasons for this attraction is Dubai’s tax exemption policies from any personal and corporate tax. You can retain 100% of the profit and invest this money in other critical aspects of business growth. Though a certain amount of municipal fees and duties are charged on some items like liquor and tobacco, everything else is free from taxation liability.
4. Simple and inexpensive registration process
Offshore company formation in Dubai is a quick and straightforward process. Once the required documents and approvals are submitted, it usually takes 3-4 business days to obtain the official confirmation. The company formation cost is also proportionately lower than launching other types of businesses in Dubai. This makes the overall registration process for offshore companies economical and efficient than any company registration process.
5. Low Operational Cost and No Minimum Capital Requirement
There’s no restriction on offshore companies with regards to the lease of any property, provision of guarantees, and employment of staff. They have the liberty to operate their business through the office of registered agents like accountants and law firms in compliance with the registrar. Moreover, with the help of these agents, communication with the company can also be served.
There’s no obligation for minimum share capital on offshore companies. Typically, the registrar cross-checks that the business's paid-up capital is proportional to its proposed operations. Apart from this, there’s no statutory minimum capital requirement that an offshore company needs to fulfill.
6. Limited liability with transferability of shares
The liability of the shareholder of an offshore company is limited to the shares owned by them in the company’s capital. All you need to ensure is that the name of the company should end with ‘Limited.' It reduces the risk factor for the shareholders as they’re not responsible for the company's debt and liabilities. Transferability of shares is allowed in offshore companies which implies that the shares can be traded between two parties at a mutually agreed price with the help of a written instrument.
Exceptions for offshore companies in Dubai
Offshore companies are allowed to buy or rent any real estate properties in the specified areas of the UAE. They can also own any other real property approved by the Ras Al Khaimah free zone authority.
Any Offshore company can apply and manage an account with any UAE bank.
If an offshore company wants to engage in business activity in Dubai free zones or any other area in Dubai, they have to acquire the relevant license for the same from the designated authority. It allows the offshore company to form a subsidiary in a free zone and the onshore area in the UAE. They will now operate as per the regulations applicable under the license acquired.
Below is the list of documents required for an offshore company formation in Dubai:
Passport copies of the directors and the shareholders
Address proof of the last three months
A brief but comprehensive curriculum vitae of shareholders
Reference letter issued by the bank
Memorandum of Association (MOA) and share certificate
Additional approvals and exclusive certificates depending on your business activities
Consult with Shuraa
Shuraa Business Setup has helped more than 25,000 companies establish themselves in Dubai’s marketplace. Our legal advisors prioritize your budget constraints and come up with the best offshore company setup package. You also get insightful information regarding the various business structures in the UAE and the ideal location that’ll suit your business activities.
To know more about offshore company formation in Dubai, connect with us by calling at +971 44081900 or send a WhatsApp message on +971 50 777 5554. For email assistance, you can write to us at [email protected]