Dubai is nothing, if not business-friendly! It was 2003 when the UAE introduced the concept of offshore companies and since then aspiring entrepreneurs and seasoned business persons have been making their way to the UAE, one of the most business-friendly countries in the world, with their hearts set on Dubai. An offshore company is a legal business entity that is established with the intention of functioning outside its registered jurisdiction and/or the location of its ultimate ownership while enjoying several benefits such as a stable & business-friendly legal system, flexible regulatory regime, tax neutrality, separation & protection of assets, gateway to international markets, access to global funding, etc. Setting up an offshore company in Dubai is a piece of cake for big little corporations all over the world. Typically built with provisions to minimise or eliminate taxes associated with property sales, capital gains, value-added tax (VAT), death duties, and profits on business earnings, offshore company formation in Dubai is a fast-growing sector of new business setup in the country. Thanks to the ease of formation and low maintenance cost and of course the availability of highly qualified business setup advisors such as Adam Global Dubai who bend over backward to make the process quick and impeccable.
The term “offshore” itself defines what an offshore company means. Unlike a traditional onshore company, which refers to a local functioning within the borders of its country of origin, an offshore company in comparison is an entity that carries out all of its transactions outside the borders of the country where it is located. Because it is owned and exists as a non-resident entity, it is not subject to local taxation, as all of its financial transactions are made outside the boundaries of the jurisdiction where it is incorporated. Simply put, a company incorporated in a country overseas, in a foreign jurisdiction where the beneficial owner doesn’t reside, is termed an offshore company. An offshore company operates as a corporate entity that is authorised to trade, hold assets and carry out normal business activities legally outside of its jurisdiction. Such a company can be owned by individuals or a corporation and is a business entity that does not perform any business operations in its country of origin. For big corporations, offshore companies act as a conveyance to effectively manage their income and tax liabilities.
Dubai offshore company setup is a popular choice for businesses desiring to secure a presence in Dubai. Corporations that are not intending to engage in any business inside the UAE, whether onshore or within any of the available free zones, can incorporate an entity under the UAE offshore regulatory system. Offshore businesses typically operate as holding companies and do not conduct commercial activities.
Offshore company formation in Dubai, UAE is a quite popular route amongst entrepreneurs who want to do business in the emirate without living here. Most individuals choose Dubai for offshore company formation to make the most of local laws that offer low or no tax benefits to non-resident companies. The major cause behind offshore jurisdictions offering low-tax and pro-business legislation to foreign entities looking for alternative locations is attracting business persons for foreign capital. Not just tax advantages, but offshore companies also enjoy grander asset protection, more privacy, legal protections and simple corporate policies. When it comes to registering an offshore company in the UAE, you have only three options in front of you – Dubai (Jebel Ali aka JAFZA), Ajman and Ras Al Khaimah (RAK). Read on to know more about a Dubai offshore company.
In the light of the recent amendments done to the federal Commercial Companies Law, foreign investors are eligible to have full ownership of businesses engaged in specific commercial and industrial activities. This means that foreign investors’ shares will not be limited to a maximum of 49 percent like before, but can be up to 100 percent instead. In case the chosen business activity doesn’t qualify for 100% ownership then the offshore company must comply with the Federal Law No. 8 of 1984 (amended by Federal Law No. 13 of 1988) – the Commercial Companies Law – and its by-laws, which govern the operations of foreign business. In broad terms, the provisions of these regulations are as follows: The Federal Law stipulates total local equity of not less than 51% in any commercial company and outlines seven categories of business organization, which can be established in the UAE. It sets out the requirements in terms of shareholders, directors, minimum capital levels and incorporation procedures. The seven categories of business organization defined by the Law are: General partnership company, Partnership-en-commendam, Joint venture company, Public shareholding company, Private shareholding company, Limited liability company, Share partnership company. By far, the most usual form that businessmen and/or corporations prefer is the limited liability company aka LLC.
The legislation, which governs Dubai Offshore Companies, was enacted in Jebel Ali Free Zone (JAFZA) in Dubai in May 2003. It provides a secure environment for investors without the levels of unnecessary intrusion and bureaucracy found in other offshore jurisdictions.
Below are the business activities that a UAE offshore entity is allowed to conduct under its licence:
While naming an offshore business to be incorporated in Dubai, it is important to note that abbreviations such as Ltd. or Inc. can’t be used as suffixes. Nonetheless, Dubai offshore companies must use the suffix “Limited” to denote limited liability or Limited or “Incorporated” to mean that the business operation and its pool of business assets and liabilities are “incorporated” into a separate legal “person”. The following words and their associated activities are prohibited:
Dubai offshore company can have a minimum of one and a maximum of 50 persons, whose liability is limited to their shares in the company’s capital. 100% foreign ownership of the company is allowed. There is no public register of shareholders and directors. Shareholders must visit JAFZA and sign the incorporation documents in presence of their authorised official of JAFZA. Alternatively, a power of attorney, notarised and legalised by the UAE Embassy, can be issued to a nominated person who can then sign before JAFZA authorized official.
Dubai offshore company can select its own minimum capital. Usually, we recommend share capital to be $1,000. All shares must be fully paid when allotted. A company may not create different classes of shares. Bearer shares cannot be issued. Presently, joint shareholding is not allowed.
A minimum of one director (previously two) and one secretary are required and they cannot be bodies of corporate. If the company has more than one director, one of them can also be a secretary. A register of directors must be held at the Registered Office, but it is not a matter of public record.
Dubai offshore company must maintain a local Registered Agent approved by the local authorities and a local Registered Office, which is usually provided by the Registered Agent.
Dubai offshore companies are not liable to pay any sort of taxes on profit, capital gains or anything else.
No annual reports or accounts need to be filed. Accounts must be audited and accounts must be distributed to shareholders (but NOT filed with the authorities). Dubai offshore company may retain their accounting records wherever in the world the directors deem appropriate.
Dubai offshore company meetings need not be held in Dubai.
Usually, for an offshore company setup Dubai takes 5-7 working days.
Offshore Company Formation in Dubai is easier, affordable and more profitable than ever. Still, you may engage an experienced Dubai offshore business setup advisor to save your valuable time, money and effort. Whether you DIY or approach professional assistance, knowing the procedure not only gives you confidence but also makes things easier and clearer. Below is our Dubai offshore company setup guide to enlighten you on the step-by-step process of setting up an offshore company in Dubai.
Dubai offshore company formation process is pretty simple and takes one week or two to complete. It can be faster if the submitted application and document are error-free. Engaging a qualified Dubai offshore company formation specialist such as Adam Global is a great idea to ensure the documents are in place and free from any errors. We help in the preparation of the application documents while ensuring no delays happen in the process with a flawless process. With our offshore business setup consultants by your side, you don’t have to worry about other tasks after the offshore company is set up such as filing the application for investors and employee visas and opening corporate bank accounts.
With a Dubai offshore company setup comes myriad benefits that empower businesses to get global benefits by taking advantage of local conditions.
Now answer this, are you ready to take advantage of the global possibilities? If yes, then get in touch with us.
Make sure the paperwork is in place before you go offshore in Dubai, UAE. Here is the list of required documents for offshore company formation in Dubai:
Investors who are planning for offshore company registration in Dubai must be capable of creating and maintaining wealth, holding or protecting property and other assets, offering international trading, contracting & consulting services from a single location and of course finding one of the best offshore company setup service providers in Dubai. When it comes to the incorporation of offshore companies in Dubai or any part of the UAE, you want to approach a leading business setup company in Dubai that has a proven record in the domain. You might want to check out these simple tips to find the right business formation consultant in Dubai who can help you set up the company type in your preferred jurisdiction from scratch. Being in the industry for more than two decades, Adam Global Dubai (Dubaibusinessadvisors.com) has become the powerhouse of seasoned professionals who are worth their salt in their respective fields. When you choose us as your Dubai offshore company setup guide, you can sit back and relax focusing on the tasks that can’t be outsourced or that need your full attention such as formulating promotional activities, arranging funds, hiring quality employees, etc. And the best thing? You can utilise the time, money and effort saved by outsourcing the responsibility of setting up an offshore company in the UAE to a leading business formation consultancy in keeping yourself on the ball.
As a leading offshore business setup advisory firm, we provide end-to-end offshore business formation consultancy services to our clients. We have an in-house team of qualified professionals who possess extensive experience in providing A to Z offshore company formation solutions in Dubai and the other six Emirates. With our professional-with-personal-touch offshore business consultancy, you will be able to minimize taxes, safeguard assets and limit liabilities. Dubaibusinessadvisors.com is your one-stop spot for all the assistance you need and helps you figure out how to get the most as a Dubai offshore entity. Therefore, if you want to hand over the dream of your Dubai offshore company formation to competent, trustworthy hands then Dubaibusinessadvisors.com is the answer!
When it comes to offshore company formation Dubaibusinessadvisors.com is the place to be. It’s pretty visible, why? We run the gamut of business formation services in the UAE, including JAFZA Dubai offshore business setup assistance. When you are at Adam Global for your offshore company setup Dubai, you don’t have to anywhere else for any of your offshore business-related needs as we provide the whole array of services you might require even after the business is all set up and ready to take off. Just glance over the “Dubai offline business setup benefits package” we provide to business persons who are looking to incorporate an offline business setup in Dubai without wasting their valuable resources. Our Dubai offshore company package includes:
While the process of offshore company registration in Dubai is pretty straightforward, it can be intimidating if you aren’t well acquainted with the rules and regulations in UAE. Any which way, you have got so much on your platter and you won’t want to get into that tedious paperwork and legal requirements that come with business setup in Dubai offshore. With our offshore business formation advisors with you, your Dubai offshore company incorporation process will be easy, quick, and simplified. We complete the process in a few days. How? Find out in your first no-obligation free consultancy with our Dubai JAFZA offshore company setup expert.
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P.O. Box 183827, Dubai
United Arab Emirates
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