Offshore Company Formation in UAE
What is Offshore Company Formation in UAE?
The word offshore literally means a location that is situated outside the national boundaries of the place of one’s permanent residence. Offshore Company also often referred to as an International Business Company is a legal entity that is incorporated in a foreign country other than that of the company’s principal’s residence, i.e. shareholder, director, owner, partner etc.
An International Business Company or Offshore Company is a legal entity (usually a holding structure) without the ability to conduct any sort of substantial business activity within the country of incorporation. An offshore company is often incorporated to reap benefits usually not available in the country of residence. These include advantages such as tax savings, tax efficiency or optimisation, asset protection from lawsuits, or merely to increase the opportunities for foreign business.
Why Switch to the UAE for Your Offshore Company Formation?
Among the numerous advantages an Offshore Company formation in UAE has to offer, it is incorporated mainly for international trading, protection of assets, tax planning, purchasing or holding real estate properties in the designated areas of UAE, acquisition of shares of other companies, trust funds etc.
Least should there be a doubt on criminal activity, the identity of the beneficiary is kept strictly confidential and anonymous by law. It is possible to open and maintain a bank account with an offshore company in the UAE, and the company may either choose to be governed by the UAE law or by that of the applicant’s country. Other benefits are as listed below;
• 100 % Foreign Ownership
• Tax Efficiency
• 0% Personal or Corporate tax in the UAE
• Cost-effective and easy incorporation process in the UAE
• Open Multi-Currency Bank Account
• Reduce Operational Cost
• No minimum share capital required
• Conveniently transferable shares
• Limited Liability Company, i.e. limited to the shares in the capital of the company
• Better access to International funding
• Access to an optimised business-friendly legal system
List of Offshore Jurisdictions In the UAE
There are currently three offshore jurisdictions in the United Arab Emirates. Business Expert is an award-winning registered offshore agent for all three.
1. Dubai Offshore ( AFZA)
2. Ras Al Khaima International Business Corporation (RAK IBC)
3. Ajman Offshore
The Process of Offshore Company Formation Documents: What are the documents required for an Offshore Company Formation?
To register an offshore company in the UAE, the applicant who is either natural or juristic must submit, along with other supporting documents, a duly signed application form to the offshore company’s registrar.
The application form contains information on the proposed capital. The application form will require the shareholder’s full name and addresses as well as the number of shares held by each along with their proposed value. The shareholder may decide to either nominate minimum one director who can be from among them or appoint an outside individual. The application is to be submitted along with the company’s proposed memorandum and articles of association.
Other Documents include the following:
1. CV/Resume of the applicant
2. Applicant’s Passport Copy
3. Reference letter from Bank
4. Proof of Residence (any document such as utility bills that verifies the address of the applicant)
5. Passport copy of nominated Director
6. A notarized Power of Attorney duly attested by UAE Embassy/Consulate in favour of Business Expert to pursue the incorporation procedure on behalf of the applicant.
The following documents shall be duly attested by the UAE embassy in the country of incorporation.
1. Company’s Registration Certificate
2. Certificate of good standing
3. Applicant Company’s Memorandum & Articles of Association
4. Board Resolution for offshore company establishment, director’s appointment and legally permitting Business Expert as a legal representative of the company.
5. Reference letter from Bank
Costs: What is the price for an Offshore company formation in UAE?
The cost will ultimately depend on the offshore jurisdiction, the type of package and other particular factors; however, below is a breakdown of general cost for offshore company setup. These fees are only estimates.
Offshore Company Formation Comparison Chart
|Dubai Offshore(JAFZA)||RAK IBC||Ajman Offshore|
|Time of Incorporation||2 WEEK||24 HOURS||24 HOURS|
|How long for Bank Account||2 WEEK||3 WEEK||3 WEEK|
|Can open a corporate bank account?||YES||YES||YES|
|Resident Shareholder or Director Required?||NO||NO||NO|
|Are you allowed to do business within the UAE?||NO||NO||NO|
|Can Invest in UAE Real Estate?||YES||YES||YES|
|Bearer Shares Allowed?||NO||NO||NO|
|Bearer Shares Allowed?||1||1||1|
|Resident Company Secretary?||NO||NO||NO|
|Min # of shareholders?||1||1||1|
|Annual Accounting & Tax Obligations?||YES||YES||YES|
|Maintain Accounting Records?||YES||YES||YES|
|Apply for UAE Immigration Visa?||NO||NO||NO|
|Apply for UAE Immigration Visa?||NO||NO||NO|
|Can rent office space?||YES||NO||NO|
Offshore Company Process:
How to start or register your Offshore Company in the UAE
At Business Expert, we guide you and hold your hand through each step of your business journey. Although the process is quite detailed, below is an 8 Step Process highlighting the essential incorporation procedure for your offshore company formation in the UAE with our highly experienced staff. The process, if all documents are complete, usually takes less than 1 week and depends on the offshore jurisdiction your Business Expert consultant advises.