The moment we hear the term offshore company we think of a business landscape away from home country that provides tax haven. However, forming an offshore company not just provides an income levy but also offers several other benefits. Countries all over the world offer business entities the facility to setup this kind of venture and reap the fruits of its flexible and financially attractive local laws. The United Arab Emirates is no different. In fact, it is one of the most sought after places to start an offshore business for businessmen.
The United Arab Emirates have long-standing reputation of a solid and tax-free jurisdiction. Due to the compliance with all international requirements on anti-money laundering the UAE has never been black-listed as a country failing to comply with such regulations. The UAE also has not signed the directive and the agreement with the OCED (Organization for Economic Co-operation and Development). In relation to this fact, the offshore companies registered in the UAE today are one of the most effective protection instruments of confidentiality and investors right. In addition to it, the Arab Emirates has solid and stable banking system for business of offshore company UAE.
Benefits of Opening an Offshore Company in the UAE
- No taxes and customs duty
- Full repatriation of profits
- 100% foreign ownership is permitted
- Only one shareholder and a director required to register the company
- Any currency can be used as a capital for the company
- No requirement to deposit the capital in the bank account
- The shareholders are benefitted from the privacy
- Setting up an offshore company is a cheap and easy way to open a corporate bank account
Procedure to Start an Offshore Company
Offshore Company formation in Dubai is an easy and straight-forward process. It can be completed in a matter of weeks. The steps are as follows;
- Select a Company Name. Name of the company must be initially verified with the Registrar. The company name must not include the following words: insurance, bank, building society, cooperative, fund, Municipal, Chamber of Commerce, trust, Royal, chartered, finance, mutual fund, Emirate and Emirates. At the end the company name shall have Ltd. or Incorporated
- Fill an application. To do this you’ll need several documents. These include an attested passport copy for all individual shareholders, proof of residency, preferred name of the company being formed, and details of the business activities that will be undertaken by the newly formed company
- The completed application form must be submitted to the concerned authorities who will review it
- Next, once the form is approved, draft a Memorandum of Association (MoA). Memorandum and Articles are provided in English language which is very practical for international business
- Once MoA is drafted and documents are reviewed by the authority, upon approval, you can officially start your company
- You must open an offshore bank account after the registration
Remember that, an offshore company cannot carry out any business activities on the territory of the UAE except opening offshore bank account in Dubai and purchase of real estate. An offshore company, in distinction to an onshore company in Free Trade Zone, does not give the right to receive the residency visa in the UAE.
Documents Required to Start an Offshore Company
For individual shareholder:
- Attested passport copy of the owner/shareholder.
- Residential proof.
- Original bank reference document.
- Details of the owner/shareholder.
- Preferred name of the company to be formed.
- Activities of the newly formed offshore company.
- The hierarchy of beneficiaries.
For Corporate Shareholders:
- Board resolution.
- Memorandum of Association.
- Parent company certificate mentioning the name of shareholders/directors, and duly attested.
- Hierarchy of beneficiaries
Jebel Ali Free Zone Authority or JAFZA, Ajman FZ as well as Ras-Al-Khaimah’s Free Trade Zone called RAKFTZ allow foreign entities to register an offshore company in Dubai. With a great experience of setting up offshore companies in UAE, we at Business Setup Worldwide assist in all procedures from start to end for opening a foreign company bank account here. Contact us today- we’d be happy to help you.