Dubai holds the perfect mark as an ideal business incorporation ground that widens the opportunities for business investors and owners.
For ages, the zone has been grabbing the attention of the business owners right from a newbie to a successfully experienced business professional.
Dubai has been one of the trending tourist destinations, widening the business investors' opportunities to come forward and invest. At the same time, it has set a separate ground for investors keen on investing in the offshore business model.
If you are an offshore business investor and planning to start an offshore business or invest in Dubai, this blog is for you.
Dubai: A Perfect Ground for an Offshore Company
An offshore company is a legal business entity that operates outside its registered jurisdiction and location of its ultimate ownership.
Setting up an offshore company in the UAE is an ideal, tax-efficient, and cost-effective corporate structure for entrepreneurs who wish to conduct international trade.
An offshore company in Dubai is also called a non-resident paper company that allows foreign entrepreneurs to serve Africa and the Middle East without administrative obligations.
Also, the business investors hold the flexibility to operate through an offshore bank account at an international level.
Offshore Company Setup in UAE
The Emirati government has set up different zones to provide a feasible ground to foreign business investors.
Two significant offshore zones that are widely accepted by business investors involve:
- Ras-Al-Khaimah (RAK)
- Jebel Ali Free Zone Authority (JAFZA)
The business investors have got the complete flexibility to open multi-currency accounts and operate the business operations internationally.
Remember that UAE offshore companies must not be confused with UAE freezone companies. Free Zone Companies are onshore entities permitted to carry out business in Dubai with certain restrictions. They are similarly subject to the 0% rate of corporate tax, but they enable their shareholders, directors, and employees to obtain residency in the UAE.
Advantages of Forming Dubai Offshore Company
Here’s a list of the benefits of offshore company in Dubai, which involves:
- An offshore company is legally exempt from corporate tax, making it an ideal international trading
- The shareholders and the directors of the offshore company are not required to register their names and details for public record
- A Dubai offshore company is exempt from all annual accounting and tax obligations
- Setting up an offshore company in Dubai is a cheap and easy way to get a corporate bank account in Dubai
- No customs duty
- Full repatriation of funds and multi-currency transactions
- 100% foreign ownership
Documents Required to Incorporate an Offshore Company in Dubai
When it comes to the company formation process, documentation plays an important role. Now, incorporating an offshore company requires a different set of documents.
For individual shareholders in the company-
- Attested passport copies 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 in the company-
- Board resolution
- Memorandum of Association
- Parent company certificate mentioning the name of shareholders/directors, and duly attested
- Hierarchy of beneficiaries
What is the Procedure to Start an Offshore Company in Dubai?
The company formation process is so simple that it can often be completed in a matter of weeks. Here are the steps that you need to follow to register your offshore company in Dubai.
1.Selection of Trade Name
The first step is to select a trading name for your business, as it shall reflect the corporate activities accordingly. When choosing a tradename, there are a few restrictions you need to follow, like the selected name must not be similar to the company name of any established entity, no usage of words like banking, insurance, reinsurance, etc.
2.Submission of the Application
The next move is to submit the company application form to the relevant business authorities with all the relevant documents. It is to note that the documentation and company formation process also depends on the total number of shareholders in the offshore company.
3.Reviewed by the Relevant Authority
The relevant documents need to be submitted to the appropriate authority, who will scrutiny the same and will approve/ disapprove the application that you submit. The inspection process involves several factors that need to be considered accordingly.
4.Open an Offshore Bank Account
Once the declaration from the relevant authorities has been obtained, the next move is to proceed with an offshore bank account. Opening an offshore bank account helps individuals carry out international transactions at ease and invest in the global market.
By now, you must have understood a complete picture of the relevant steps that need to be taken accordingly regarding offshore company formation in Dubai.
Proceeding ahead with the company setup process might be difficult if you are not well-versed in legal proceedings. It helps solve the issues, but a certified expert can act as a guide and help you streamline the processes accordingly. Here's a guide on Core Reasons for Hiring an Offshore Business Consultant
If you are still confused or sceptical about the process, we at Business Setup Worldwide can help you with it. Our certified business advisors hold industry experience and help you start your business by providing tailored solutions accordingly. Contact us today- we'd be happy to assist you.