An offshore company in UAE is the most favorable way to commence your business. UAE has become a perfect hub for businesses and MNCs around the world since emergence of offshore company formation in the UAE in 2003. Offshore companies in the UAE are renowned and properly supported by the UAE government. An offshore company does not only get tax and custom-free benefits but also other economic benefits and because of this fact the UAE has become one of the most vibrant countries for companies to set up their business in. Being one of the most booming economy in the world and also regarded as the best places to conduct business in, an offshore company formation in the UAE provides for all essential and superior facilities for a business.
What is an Offshore Company?
An offshore company can be owned by corporate bodies or individuals and is a business unit which does not perform any extensive business activity in its country of origin. An offshore company is not permitted to occupy an office space in the UAE.
This type of company is framed under the no-tax jurisdiction law with the only reason of enhancing wealth management for owner and reducing all kind of tax payment lawfully. There are numerous reasons for offshore company incorporation in UAE, first and foremost they provide complete confidentiality over the financial affairs and boost in wealth without disruption. Additionally, offshore companies have the provision of eradicating different types of tax payments such as property sales, capital gains, value-added tax (VAT), death duty, profits on business earnings, etc.
Prominent Features Of An Offshore Company in UAE
An offshore company in Dubai or any other offshore company in UAE has the following features:
- Can have a director or shareholder of the company to be a non-UAE, UAE, or corporate resident.
- Can maintain UAE or international deposits and bank accounts
- No compulsion to maintain its books and records
- Requirement for a special license to carry out banking and insurance business
- There is absolutely no requirement for the shareholder/director to be actually available in the UAE for company incorporation
- No need for a actual office in UAE
- No need to keep business within the UAE
- No need to attain a UAE residency visa
- Flexibility to own real estate property in the UAE with prior authorization from RAK Investment Authority.
Activities Performed By An Offshore Company in UAE
- Advisory and Consulting services
- Buying, selling or holding stakes of companies
- Intermediary brokers (IBs)
- General trading activities
- Professional and international services
- Investments and joint investments
- Owning property
- Shipping and ship management
Why Choose An Offshore Company?
Offshore company formation in the UAE allows you to conduct business in a very lucrative way and you attain 100% ownership of assets in the UAE. Apart from this, you can evade certain procedures in company formation and also gain favorable tax benefits.
There are a lot of other reasons to choose an offshore company formation in the UAE such as:
Business can be well thought-out in a way so that profits are realized to minimize overall tax liability.
The name of the original owner may be kept out of documentation by carrying out business operation in the name of an offshore company.
An offshore company would be an excellent choice for those who want to conduct international business along with other ventures.
When the principle sells of the property, a percentage of the total value may be charged by the authority. This transfer fee can be simply evaded by selling the company itself.
A small number of property investors permit more than a single property owner. But in case of an offshore company the number of shareholders can range from 1-50, and the company owns the property.
Numerous local and international banks functioning in UAE offer offshore corporate bank accounts.
There is accessibility of sophisticated banking system, most up-to-date telecommunication facilities, flexible legislative structure and easy incorporation and filing requirements for offshore companies.
Offshore Company Formation In UAE:
There are discrete requirements and regulations of an offshore company, which differs from location to location. Likewise, there are regulations that identify activities permitted or restricted to an offshore company, names that are permissible suffixes (‘Ltd.’, ‘Inc.’, etc.). These are many things that can be taken into deliberation for offshore company incorporation in UAE.
All the business benefits like tax immunity, no minimum capital prerequisites and other benefits are offered by offshore site in the UAE. There are three offshore site options for new investors:
The most admired location in the UAE for an offshore company formation is Dubai (JAFZA).
RAK offshore is one of the best locations for your company.
Ajman offshore is another famous business points in the UAE for an offshore set up and offer a lot of profitable incentives along with a fast, inexpensive setup.
Dubai Offshore Company Formation:
Formation of Offshore company in Dubai is the most renowned and viable option. Here are some of the reasons why you need to choose offshore company in Dubai.
Primary Attributes Of Offshore Companies In Dubai:
- Offshore company in Dubai offers 100% possession by foreign investors for both legal and physical persons.
- Offshore company formation in Dubai will grant complete tax gain solutions.
- There are no need for minimum share capital of offshore companies in Dubai and UAE in generally.
- There are no restrictions on capital and benefits exile.
- Dependable regulations
Why Set Up A Dubai Offshore Company?
A Dubai Offshore Company is an outstanding corporate formation because:
- A Dubai Offshore Company is tax-free;
- A Dubai Offshore Company formation show a superior image to your buyers and suppliers;
- There is no public record of shareholders and directors in Dubai offshore company;
- A Dubai Offshore Company is swift to incorporate.
Though, you should keep the following in mind before setting up a Dubai offshore company:
- Offshore Company in Dubai is not allowed to trade within the United Arab Emirates.
- Dubai Offshore Company is not permitted to hire local offices in the UAE.
Essential Documents To Setup An Offshore Company In Dubai
Dubai Offshore Company for Individual(s) Shareholder
- Three suggested Company Name and Suffix is supposed to be LIMITED or INCORPORATED
- Passport Copy of Shareholders, Director and Manager.
- Current UAE Entry Stamp Page Copy
- CV or Business and Personal Profile of each shareholder(s).
- Original evidence of Physical address for the shareholders for example utility Bills
- Original individual Bank Reference for the Shareholder(s) and the related account should have been maintained for two or more than two years.
Offshore Company Arrangement For Corporate Shareholder
- Attested Copy of incorporation certificate.
- Attested Shareholder’s resolution for stating new Company formation in Dubai.
- Attested Memorandum of Association of the mother company
- Passport Copy of the agent of offshore company in Dubai
- Attested Good Standing Certificate.
- Attested Incumbency certificate which needs to mention the name of shareholders and directors
- Other documents demanded by the Registrar during the incorporation of offshore in Dubai
- If that corporate entity is once more owned by a different company, the same documents mentioned above are necessary till last level to get to know the original beneficiary owner.
How To Incorporate RAK Offshore Company?
There are some things that investors needs to keep in focus when choosing to set up an offshore company in Ras Al Khaimah and open a bank account for this type of company.
There are many benefits investors relish when they set up or incorporate an offshore company RAK ICC in Ras Al Khaimah. Benefits for this type of incorporation are:
- No corporate and personal tax;
- Complete foreign ownership;
- Complete repatriation of capital and profits;
- Zero requirements for the minimum share capital;
- Investor-friendly regulations along with maximum confidentiality;
- Company documents do not require any attestations for set up in the UAE
In RAK offshore jurisdiction the companies registered can provide many objectives such as business operations, tax planning, assets protections, real estate holding, etc and the rules are quite flexible. With that being said if you intend to set up your offshore company in a best possible location for business operations in cost effective manner and minimum hassle then RAK ICC offshore is that place. RAK FTZ shareholder can be certain about having apparent and quick process of company registration which is done through one of the free zone registered agents.
The applicant does not require being actually present in the country for the incorporation as all important handling is done by the registered agent. The time required to set up a company is on average 2-3 business days. The offshore company in Ras Al Khaimah is the very cost-effective and proficient way to set up your international company in UAE and open bank account for it.
Documents required for the registration of an offshore company RAK ICC in Ras Al Khaimah
- Directors and shareholder’s Colored passport copies;
- Verification of the address of shareholders and directors for example utility bills.
- Bank reference letter.
- Professional and educational CV of shareholder
In addition to opening a bank account, business set up in RAS AL KHAIMAH is considered to be great substitute to other offshore jurisdictions in the world.
Offshore Business Setup in Ajman
Ajman offshore is another famous industry set up option in the UAE for an offshore set up and offers a lot of profitable incentives along with a fast, inexpensive setup. Here are some of the advantages of opening an offshore company in Ajman.
- Protection of assets: You can shield your company’s assets by opening an offshore account in Ajman. Ajman has extremely flexible laws in terms of foreign account holders and they do support an investorl in maintaining privacy connected to their businesses.
- Tax optimization: Tax laws are simple and Ajman offshore is considered to be tax impartial. Through appropriate accounting techniques, taxes can be reduced to a minimum or zero.
- Complete Privacy of account holders: An offshore account assure investors with complete privacy in terms of financial security, scam artists, and criminals.
- Low administration costs: Ajman off shore provides simple company set up procedure in the offshore free zone and in addition the admin cost are very low.
- Simplicity of Business: This is an significant factor. With the advantage of having a virtual office in an offshore site, there is the simplicity of conducting business. You can operate business from the country of origin with assist of a local business partner.
Activities Permissible for Ajman Offshore Company
- General Trading business
- Advisory or Consultancy Services
- Companies can Buy/Hold/Sell stakes of companies.
- Investments and Joint Investments Company
- Property Owning is subject to the respective local laws of each City in UAE
- Global services
- Professional and specialized Services
- Shipping and ship management companies
- Commission Agents.
Advantages of Ajman Offshore Company Registration
- 0% taxation
- 100% profit and capital repatriation
- Complete foreign ownership
- Can possess property anywhere in UAE
- Hold stock of UAE free zone companies and LLCs is allowed
- Low incorporation time
- Cost efficient business registration process
- Can maintain bank account(s) in the UAE or internationally
- Do not need to have a physical office in the UAE in Ajman Offshore setup and no paid capital.
Documents Required for Ajman Offshore Company Formation
- Passport copy of shareholders of the company
- UAE Visa or valid Entry Stamp page copy
- CV of each shareholder background
- Original evidence of Physical address for the shareholders for example utility Bills
- Bank reference letter or Good Standing Letter for each shareholder.
Requirements necessary for corporate shareholders are:
- Articles and Memorandum of Association
- Incorporation Certificate of the mother company
- Board Resolution confirming the same about Ajman Offshore company formation
- A Good Standing Certificate
- Passport copies of at least 2 Directors
So, there you have your complete guide to how to set an offshore company formation in Dubai