The UAE is one of the most in-demand destinations for business setup in all the GCC countries. Here, international investors and entrepreneurs can start their businesses in a quickly growing economy that’s full of advantages for ex-pats and residents alike. So, if you’ve thought about traveling to the region to set up your new business, you’ve come to the right place.
At MSZ Consultancy, we aim to make setting up an offshore company a hassle-free process. Simply meet the requirements, and we’ll handle the rest! Give us a call for a free consultation!
When forming a business in the Emirates, you’ll have one of three options available to you: Mainland, Free Zone, or Offshore jurisdictions. Today, however, we’ll be focusing on Offshore business setup.
Offshore companies are legally tax-exempt entities with no annual accounting or tax responsibilities. These companies are typically comprised of:
• International Trading
• Holding Companies
• Shipping Companies
• Real Estate Businesses
• Patent and Copyright Companies
• International Consulting Services
Forming an Offshore company in Dubai can be an incredibly lucrative decision. Businesses formed here can keep more of their profits while taking advantage of an ever-evolving market built to help companies succeed. It’s also a fantastic foundation for your company if your chosen business activity is overseas trade.
Advantages of Forming an Offshore Company in Dubai
There are many reasons why one would want to register their company in Dubai’s Offshore. We could go on for days about it! But for now, we’ll narrow it down to just a few of the most significant advantages of Offshore company formation.
• Easy setup process compared to other jurisdictions in the UAE
• No requirement for directors and shareholders to register their names in public records, assuring ample privacy protections
• Exemption from all annual accounting and tax obligations
• Compared to other tax-free jurisdictions, Offshore company registration is an affordable and easy way to secure a corporate bank account
• No local sponsorship required, meaning you own your business in its entirety
• No corporate taxes
• Share capital can be produced in any currency
• No capital deposit requirements
• Full foreign ownership
• Only one shareholder and director required to register a business
Business Activities for Offshore Companies in Dubai
Offshore investors have a wide range of options when it comes to their business activity. Here, you can form businesses in:
• Property Management/Ownership
• Consulting Services
• General Trading Services
• Advisory Services
• Shipping and Ship Management
• International and Professional Services
Procedure for Registering an Offshore Company in Dubai
Offshore company registration in the UAE is designed to be an easy, straightforward process. To begin, you’ll need to submit an application to the relevant authorities along with the required documentation. Your application form must also include:
• Shareholder information
• Number of projected shares
• Value of shareholding
• Name and addresses of the official representative
• Memorandum of Association
• Articles of Association
You will also need to produce:
• A copy of ID and passports for shareholders and directors
• Proof of residence, such as a copy of recent utility bill
• Power of Attorney, if applicable
• Reference letters from banking institutions
After collecting these documents for submission, you’ll want to complete the following steps:
1. Choose a Business Activity
For the best chances of success, you’ll want to perform ample research to decide what business activity is right for you. Having a comprehensive knowledge of your industry, your competitors, and the market forecast is invaluable.
2. Choose a Trade Name
You will need to pick a name for your business and submit it to the relevant authorities. It must not be previously chosen by another company and may not include profanity.
3. Finalize Directors, Shareholders, and Company Secretary
You’ll want to choose the architecture of your company by carefully selecting those at the helm.
4. Choose Share Capital
5. Apply with the documents mentioned above
Offshore company formation in Dubai is a fantastic idea for new investors hoping to take advantage of a growing market with incredible business incentives. If you’ve given thought to business formation in Dubai, MSZ Consultancy can help! We have years of experience assisting investors in Offshore business formation, handling important renewals, and applying for visas. Whether you’re a single investor or part of a larger corporation, our expert consultants have the knowledge and insight to help you succeed. Business in Dubai can be incredibly profitable, but it doesn’t have to be complicated! Give us a call today for a free consultation, and let us help you supercharge your investments!
Let MSZ Consultancy handle all your business setup needs! Our experts have helped many businesses in Offshore company setup in the UAE. With tried-and-true marketing tactics and insider expertise, we’ll help you make the most of your investments! Call us today at +971 52 544 1248.
Frequently Asked Questions
1. How do I start an Offshore Company in Dubai?
You’ll need to submit a business formation application to the relevant authorities. Along with this application, you’ll need to include:
• Attested copies of passports for owners and shareholders
• Proof of residence
• Bank references
• Details about owners and shareholders both
• Preferred company name
• Activities for your potential company
2. What is the difference between a Free Zone and an Offshore jurisdiction?
Free Zone companies are typically used for conducting business within the UAE. They also hold a physical presence in the area, where an Offshore company conducts business internationally and will only require an office address for registration.
3. What are the benefits of forming an Offshore company?
There are many advantages to forming your new business as an Offshore company. These advantages include:
• Privacy and asset protection
• Minimal tax liabilities
• Legal protections
• Flexible business laws
• Easy operation
4. What is the difference between an Onshore and Offshore Business in Dubai?
Offshore companies are operated by businessmen that are not trading in the UAE. On the other hand, onshore corporations are able to conduct the business of all kinds within the UAE. The rules and regulations surrounding these jurisdictions vary significantly between the two, and both offer different sets of advantages for potential investors.
5. What is the purpose of an Offshore company?
An Offshore company is a business that is incorporated for the purposes of operating outside of the country of its initial registration. A company may legitimately move offshore to seek relaxed tax and business regulations.