Offshore company formations in the UAE have proven to be a very popular business setup category. Offshore company setup offers several advantages, including owing no tax or low tax to the local UAE government. Offshore companies are businesses that are allowed to have their bases on offshore locations which are situated on the outskirts, but are given the eligibility to be registered in Dubai. An offshore UAE company is ideal for international businesses, in large part because it’s so cost-effective. You won’t have a physical office with this type of business, so that’s one big expense you’ll be saving. There are several other benefits to forming a company on the Offshore – you will have complete anonymity, you can do international trade, multiple investors can take part in the business, there’s easy bank account setup, and you still get all the tax benefits. UAE offshore company formations can also take the form of limited companies, limited partnerships, and limited liability companies.
Unlike other jurisdictions which are mostly valued for their tax benefits, offshore business setup in the UAE offers other benefits as well: direct investment into specific jurisdictions, better management of taxes on complete ownership of intellectual property, foreign income generation, and protection of personal assets through company formation. An offshore company in the UAE can be strategically purposed to help limit international tax liability as well, since there are no requirements for minimum share capital. In some cases, however, the authorities may ask that paid capital be commensurate with the proposed activities of the business.
UAE has been intentional about creating an inviting platform for international business opportunity, making it an attractive global hub for all business enterprises. Offshore company formations in Dubai are a gateway towards engaging international markets, enjoying business-friendly legal systems, securing global funding, and acting as a holding company base to protect vital assets. Offshore companies in the UAE have been permitted to open multi-currency accounts to carry out businesses internationally from an advantageous position. The two top authorities for establishing offshore companies in the UAE currently are Jabel Ali Free Zone (JAFZA) and Ras Al Khaimah International Corporate Center (RAKICC). And on top of all these benefits, Dubai offshore company establishments are relatively simple to create, and typically only require a few weeks for the process to be completed. MSZ Consultancy has extensive experience and expertise in helping offshore companies to get established in the UAE. Interested in getting your own offshore company set up? Then keep reading to learn more!
Offshore Company Formation Setups
1. RAK Offshore
RAK Offshore Company Formation is a strategic offshore option located in the Emirate of Ras Al Khaimah, located just a one-hour drive from Abu Dhabi. Ras Al Khaimah has a fast-paced growing economy in many business sectors, boasting a current GDP growth of 26%, with some of the greatest gains occurring in the manufacturing industry. RAK Offshore is a great option for offshore business setup, as the cost of running a business is between 25-50% less than that of the other Emirates, making it an ideal opportunity for growth and higher returns on investment.
2. JAFZA Offshore
Jebel Ali Free Zone more commonly known as JAFZA is another solid choice for offshore company formation in Dubai. JAFZA was established in 1985 in an industrial zone that surrounds the Port of Jebel Ali, which is among the biggest ports for imports and exports. Establishing an offshore company in JAFZA comes with many benefits, including corporate tax exemption for 15 years, no personal income tax, no duties on imports and exports, an easy labor recruitment process, and no currency limit.
Some of the best things about dubai offshore companies
1. Great flexibility
Foreign investors are allowed 100% ownership and control over the offshore companies they set up in Dubai. Moreover, investors aren’t required to maintain a physical location, unlike the other business formations in the UAE.
Specific details of company owners and company ownership aren’t disclosed to outsiders during the UAE offshore company formation process. This makes offshore company formation ideal for foreign investors who wish to retain anonymity about their business dealings within the UAE, and beyond.
3. Tax advantages
For many years, the UAE region has become well-known for its ability to attract foreign investors, thanks to its lenient tax regime. And these benefits extend to offshore companies, too. Offshore company formations benefit from the no corporate income tax law, as well.
4. Bank accounts
Offshore companies are allowed to operate multi-currency bank accounts that can facilitate international business transactions and can safely guarantee financial assets. Your offshore company formation specialist will help you in choosing the best UAE multi-currency banking services provider to meet your specific needs, along with opening the required bank accounts.
In summary, Dubai is the core business hub for the entire Middle East region. Offshore companies here (also known as non-resident companies or international business companies) are owned and controlled by foreign investors who are keen to venture into international markets. As such, UAE offshore company formation in Dubai is ideal for investors all over the world who are looking to grow their international business portfolios. And MSZ Consultancy is a trusted, registered local agency that specializes in helping to facilitate offshore company formations in the UAE. We currently serve clients from all over the world, and we’d be happy to serve your needs, too.
Reach out today to book your FREE offshore company setup consultation! Give us a call at +971525441248 or just shoot us an email at firstname.lastname@example.org. Don’t wait; let’s get started on kick-starting your UAE offshore company setup today!
Frequently Asked Questions
1. What documentation is required for Offshore Company establishment?
• Business plan (At least a 3-year plan)
• Original bank reference letter, or 6 monthly bank statements (stamped by the bank)
• Proof of address (Ex. utility bills, etc.)
• CV of the primary shareholders
• Passport copies of the primary shareholders
• 3 options for name reservation
• Specified business activity type
2. What are some of the functions of an Offshore Company?
• Traditional business pursuits
• Commerce over the internet (E-Commerce)
• Business counseling, financial counseling, and general consultancy services
• Holding of intellectual property rights
• For the purposes of maintaining inheritances and other assets
3. Is it legal to own an Offshore Company in the UAE?
Yes, it is! Owning shares in an offshore corporation, either directly or indirectly, is fundamentally no different from owning a domestic business. Even so, you should do your homework before considering any offshore ownership venture, and consult with an expert in the field like MSZ. Many high-tax countries have legislated certain countermeasures in their tax regulations against known offshore finance centers. But generally speaking, an offshore company operates much like any domestic firm, except that an offshore corporation isn’t burdened by excessive tax, is faster to incorporate, and easier to manage.
4. Can anyone set up an Offshore Company?
Most overseas jurisdictions make it simple for anyone to incorporate. The statutory obligations for running an offshore entity in the UAE have also been intentionally simplified and streamlined for the benefit of participating businesses.
5. Which countries are best for Offshore Company formation?
Here are a few countries internationally recognized to be favorable sites for offshore company formation:
• Hong Kong
• Cayman Islands