Every businessman who plans to start a new venture looks for a supportive and profitable environment. Dubai truly checks that box. The city offers a welcoming and hospitable environment for entrepreneurs and new businesses through its best policies and approachable strategies. Not just freezones or mainland company formation schemes, investors can also benefit from an offshore company setup in Dubai. An offshore company setup allows businesses to operate outside its registered jurisdiction. In addition, they offer an ideal business and wealth management system, along with the application of smart international investment strategies, and freedom of business operations.
This blog will get into further details and give an insight to those business investors who are interested in Dubai offshore company formation.
Offshore company setup in Dubai
Offshore companies in Dubai are business establishments that are allowed to set base in offshore locations even though they are registered in Dubai. In brief, offshore companies operate outside the original location of registration. The Dubai offshore company formation became widely popular in the UAE because of its tax-efficient, and cost-effective corporate structure.
An offshore entity can also be termed as a ‘non-resident paper company’ that permits businessmen to serve Africa and the Middle East without administrative obligations. It also helps them to have 100% ownership of their assets in the UAE, along with no annual accounting or tax obligations.
An offshore company setup in Dubai is fundamentally ruled by the Jebel Ali Free Zone Offshore Companies Regulations 2003 and is used for the following purposes –
- International trading
- Ownership of real estate/property management
- International consulting services
- Holding company
- Shipping company
- Registration of copyright and patents
Advantages of offshore company setup in Dubai
Entrepreneurs or foreign investors might have multiple reasons and progressive intentions behind forming an Offshore company, such as –
- Business owners enjoy monetary benefits like exemption from corporate tax and customs duty.
- Investors can enjoy complete ownership of their offshore company.
- Offshore companies are quick and simple to set up in Dubai as compared to other establishments in the UAE.
- It ensures the safety and security of the company and its respective owners’ details. The shareholders and directors do not have to register their personal details for public record.
- Offshore companies allow business owners to operate multi-currency bank accounts. Thus, it guarantees money safety and facilitates international business transactions as well.
- Since Dubai is a globally-recognized business hub, it has good credibility among its clients and potential venture capitalists.
- Offshore companies are also exempted from all annual accounting and tax compulsions.
- It offers a cheap and easy way to open a corporate bank account in Dubai.
- Offshore company owners have the right to repatriate their funds and profits earned in their UAE business.
- It facilitates international trade, thus securing international funding.
- Dubai offers investor-friendly laws and regulations for offshore businesses and enhances the potential for business expansion in the future.
- Unlike mainland company formation and free zone company formation, offshore companies do not have to hassle through the license issuance process. Rather, they can get a certificate of incorporation from the authorities and start off with their business without any delays.
Disadvantages of offshore company setup in Dubai
Every company setup has its own positive and negative traits. Similarly, Dubai offshore company formation has a few disadvantages that cannot be left unnoticed. For example,
- An offshore company setup in Dubai is restricted to trade in Dubai and the UAE.
- Starting an offshore company in Dubai can be quite expensive, compared to other business types in the UAE.
- The offshore business owners cannot rent local premises in the UAE. neither can they employ staff in the UAE, nor are they allowed to obtain residence or work visas for staff.
- The company owners cannot invest in real estate in the United Arab Emirates.
- The offshore entities are restricted from availing of the benefits of UAE’s double taxation treaties in order to reduce global withholding tax.
The offshore company specialist at Shuraa can assist you with the necessary information about the incorporation göztepe escort process to ensure no errors or delays occur from your end. They will also provide help in accomplishing other important tasks, such as investors visa, employee visas, opening bank accounts, etc.
You may like it: Why to Choose Dubai South Free Zone for Your Business Setup?
Procedure to Start an Offshore Company in Dubai
The offshore company formation in Dubai is pretty straightforward. The steps to initiate a Dubai offshore company include :
Selection of trade name
Choosing a trading name for your business is a vital step. The owner must ensure that the selected name reflects the business activities. However, there are a few restrictions that the owner must take care of while choosing a suitable name for the company. It is therefore a must for every company to follow the name convention protocols fixed by the UAE government.
Submission of the application
The business owner must duly submit the application form along with all the essential documents required for their offshore company formation. Furthermore, the company formation and documentation procedure completely depends on the number of shareholders in the offshore company.
Approval from the relevant authorities
The authorities thoroughly review and scrutinize all the information, application, and documents submitted by the business owner. After the complete inspection, the authorities share their approval or disapproval.
Open an offshore bank account
Once you receive the approval from the authorities, you can proceed to the next step, which is opening an offshore bank account. Through an offshore bank account, the owner can not only carry out international transactions smoothly but can also invest in the global market.
Documents required for offshore company setup in Dubai
- Copy of passports of the company shareholders/owners
- Updated CV of the shareholders
- Business plan
- Original bank reference letter
- Bank statement for the past six months
- Residence proof
- Business activity
- Trade name preferences (at least three)
The entrepreneurs and investors have two options or say two different jurisdictions in Dubai to establish an offshore company. They are Jebel Ali and Ras Al Khaimah. Both these jurisdictions have their own set of rules and policies when it comes to starting an offshore company. However, both are efficient locations and globally popular as business centers. So, the investors can choose any of them as their company base after understanding their respective structures and legalities. If you are not well-versed with the legal proceedings of the offshore company setup in Dubai, the whole process can become very difficult to accomplish. Therefore, it is advisable to seek the right guidance from a certified expert who can help you to understand the processes accordingly.
Shuraa Business Setup specializes in providing the best solutions to your business setup problems. Our skilled business advisors hold industry experience and expertise in successful company formation in Dubai and the UAE. In addition, they can guide you through the Incorporation formalities and provide tailored solutions accordingly.
Further, Shuraa holds wide experience in the business domain and also holds strong contacts with the UAE authorities that can help you start your business without any hassles and delays. All you have to do is get in touch with our advisors, share your business requirements and they will take care of the rest.
Connect with Shuraa to get exceptional offshore business setup services in UAE! Call +971 44081900 or reach out to us at firstname.lastname@example.org. You can also share your queries through chats at our WhatsApp number +971 50 777 5554.