The United Arab Emirates is a legitimate business hub that allows entrepreneurs and investors to conduct international trade while operating outside of the country. Ever since the rise of the offshore company setup Dubai in 2024, the UAE has emerged as a remarkable destination for businesses from all over the world. This convenience allows business owners to own property and companies anywhere in the UAE.

Offshore company setup Dubai

An offshore company, also known as a non-resident company, is an entity registered in the UAE, however, established and operated outside its registered jurisdiction. The prime aim of entrepreneurs and investors to opt for an offshore company formation in Dubai is to register under the no-tax jurisdiction in order to improve their financial management and theoretically reduce any tax liabilities.

In addition, an offshore company setup Dubai maintains full anonymity of the company regarding their financial affairs, helps increase their capital without any interferences, and reduces various forms of taxes, such as capital gains, VAT, dividends from corporate income, land dealings, and so on. Furthermore, it allows business owners to own 100% of their assets in the UAE and operate a profitable business.

Purpose of encouraging offshore company formation in Dubai:-

  • Take advantage of monetary benefits such as tax exemptions
  • Obtain foreign funds
  • Benefit from investor-friendly legislation and regulations
  • Future growth plans for the business
  • Make foreign trade easier

Thus, both individuals and corporations can equally benefit from an offshore company setup Dubai. However, they are restricted from carrying out business activities or transactions in the country where it is registered. Moreover, the license issuance mechanism is different for these companies. Unlike Mainland and Free zone companies, offshore entities are issued an Incorporation Certificate.

Key benefits of offshore company setup Dubai

  • Tax optimization – Dubai Offshore is a tax-free region. Hence, it allows companies to retain all their profits. Besides, with the double taxation avoidance agreements signed by the UAE with other nations, companies can avoid paying taxes in both the UAE and their country of residence.
  • Foreign ownership – Offshore company setup allows 100% foreign ownership, attracting entrepreneurs and startups who are looking to expand their business to Dubai, UAE.
  • Asset protection – Offshore entities protect the assets of the business owners such as real estate, intellectual property, stocks, and securities from lawsuits and third-party rivals.
  • Privacy and confidentiality – Offshore companies can keep their business dealings private and confidential as they don’t need to maintain or publish financial records or shareholder details.
  • Ease of banking – Offshore companies can set up multi-currency bank accounts with local and international financial institutions in the Emirate, and make financial transactions globally while benefiting from the robust banking infrastructure of Dubai.
  • Operational flexibility – Although offshore companies are prohibited from conducting business with UAE residents, they are allowed to hold shares in free zones and onshore companies. In fact, the offshore companies in JAFZA can directly own real estate in the Emirate.
  • Efficient business setup – Offshore company setup Dubai is a quick and straightforward process that allows incorporation within 2-3 working days. Not only it does not mandate a minimum capital, but the minimum requirements include just one shareholder and one director.

Legal procedure to set up an offshore company in Dubai

There are several key steps to establish an offshore company legally in Dubai. Following these steps meticulously ensures compliance with local regulations and facilitates a smooth setup process.

Determine the business activities – Identify the nature of activities that you want to perform in your company. For example, consultancy, commerce, shipping, investments, etc. This step makes the company registration process smoother.

Choose a company name – To find an appropriate name for your company, it is advisable to select three potential names and submit them to the registration authorities. You can also seek assistance from the business advisors of Shuraa to choose a suitable name for your offshore firm that aligns with your business goals.  

Finalize a structure – Next, determine the legal structure of the company, including the number of directors and shareholders. This particular step will ensure the essential legal documents required for the formation process.

Prepare the required documents – Gather all the necessary documents such as passport copies, proof of address, a well-drafted business plan, etc. required for the business registration.

Submit an application – Submit an application for registration along with all supporting documents to the relevant authorities and wait for their approval.

Draft the MOA and AOA – Once you receive the approval from the authorities, draft the Memorandum of Association (MOA) and Articles of Association (AOA), outlining the structure and operational guidelines of the company.

Open a bank account – Once you obtain all the necessary approvals and documentation, open an offshore bank account to manage your finances efficiently and facilitate your business transactions.

Compliance and maintenance – Although offshore companies do not require annual audits or tax filings, they are required to maintain compliance with local regulations to ensure the good standing of their business.

Documentation requirements for offshore company formation in Dubai:-

  • Business registration application in the appropriate format
  • Address proof
  • Bank reference letter and documents indicating the account details of the company
  • Passport copies of the owner, shareholders, and the designated manager
  • Certified Memorandum of Association (MOA)
  • Business plan
  • Curriculum Vitae or professional data of the company owner

Additional considerations for offshore company setup Dubai

To register a business in the offshore jurisdiction successfully, business owners are required to meet certain requirements. These include:-

  • The appointed manager of the offshore company must be a UAE national, while the director of the firm can be a non-UAE citizen.
  • Offshore firms are restricted from conducting banking, insurance, or real estate transactions.
  • Offshore businesses cannot have a physical office in the UAE.
  • There are no annual government audits.
  • They are not permitted a UAE resident visa.
  • The offshore companies are prohibited from operating on Dubai’s mainland.
  • An offshore company is allowed to hold shares in other companies.

Key Jurisdictions offering offshore company setup in Dubai

The UAE comprises seven Emirates, out of which only three can register offshore companies:-

  • RAK International Corporate Centre (RAK ICC)
  • Jebel Ali Free Zone (JAFZA)
  • Ajman Free Zone

Activities permitted in an offshore company

Offshore entities are allowed to carry out the following activities:-

  • Advisory services
  • Buying, holding, or selling shares in companies
  • Commission Agents or intermediary brokers (IBs)
  • Consulting services
  • General trading activities
  • Professional services
  • Investments
  • Owning property
  • Shipping and ship management

The cost range of an offshore company setup Dubai depends on various factors, such as the type of the company, services, and administrative fees.

Start your offshore business with Shuraa

The regulations and conditions for starting an offshore company are different in terms of the number of directors, minimum share capital required, number of shareholders, etc. Similarly, there are specific rules and practices authorized or prohibited for an offshore entity. For instance, the permitted titles, the allowed suffixes, etc.

Hence, to avoid any complications or mistakes in the company setup process, it is advisable to seek the help of a trusted and registered company formation specialist such as Shuraa Business Setup. They specialize in Mainland, Free zone, and Offshore company setup Dubai, serving clients worldwide in every aspect of administration. Their services include business documentation, bank account setup, visa application, and more.

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