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Offshore Company Formation in UAE: The things you should know ;

 

Before starting to let you know about the things to be noted before beginning an offshore company in UAE, I would like to bring your interest to the definition of an Offshore Company. An offshore company simply refers to a corporation, LLC or similar class of entity formed in a foreign country to that of the principals of the organization or one that can only operate outside of its country of formation. For example, if you are a Canadian passport holder, opening a branch of your company in Dubai will be called the offshore branch. The word “offshore” is mainly based on executing, managing and operating in foreign countries with benefits in financial, legal and tax. Now coming to the offshore company formation in UAE, it is one of the best opportunities for investors willing to channel their funds and capitalize on international markets. Offshore company registration is beneficial as it offers immense tax saving as well as provides companies to function globally.

‘A fantastic business idea and initial capital were key to a successful business setup’- such thoughts are long gone.  To find a suitable place to start your business to maximize your profits, new tax regimes and fragile economies have become increasingly important today. UAE Offshore companies are not issued operating Licenses and are only given a certificate of incorporation. Hence, offshore company formation in Dubai or any other jurisdiction can be an easy process. But you should know the rules and procedures for offshore company formation in UAE. With Impressive Companies Representation, you can be laidback! Call us and save your time, money and effort as we provide you the fastest and safest way to set up an offshore company in Dubai. Before moving on to the important things to be noted before setting up an Offshore Company in UAE, I would like to grab your glance at the benefits of offshore company formation in Dubai.

In terms of tourism and foreign cash inflow, Dubai is the fastest growing emirate among the seven emirates of the United Arab Emirates. People from all over the world travel to Dubai or look for offshore company formation for a long or short term in life. At present, there is no personal tax or corporation tax imposed neither at the Emirates level nor at the federal level with limited exceptions, such as oil and foreign banks. The International Companies Regulations requires no local shareholding in an offshore company as opposed to the companies incorporated in the mainland of UAE, which requires mandatory local shareholding. It means the foreign investors either individual or corporate entities get 100% ownership. The liability of shareholders in an offshore company is limited to their share in the capital of the company. The regulation requires that the name of the offshore company shall end with “Limited”. The registration process is simple and expeditious and can be completed within 3 to 4 working days upon submission of the required documentation. Incorporation cost is relatively low as compared with other entities incorporated in free zones or the mainland of individual emirates. Shares in offshore companies are easily and freely transferable by a written instrument. There are Solid and stable banking systems in the UAE. There are no public disclosure requirements, no exchange controls and have Virtual office facilities. Also, there is no requirement for any minimum share capital, although the registrar may require that the paid-up capital of the company be commensurate with its proposed activities.

Now, let’s have a look at the things to know before setting up an Offshore Company in UAE. In UAE there are two offshore jurisdictions- Jebel Ali Free Zone (JAFZA) and Ras Al Khaimah. Some activities like Banking, Financial, Insurance, Professional services, advertising, games, media, intellectual property, movie production, military, and education are prohibited in Jebel Ali free zone. Permission to have a rented office in UAE is not granted, instead, UAE approved registered agent must provide registered office address must be present. Minimum two natural persons are required to act as directors of the company. Different classes and bearers of shares are not permitted. No minimum capital requirement, shares must be fully paid and allotted. There must be one minimum shareholder-corporate or individual.

Now coming to the documents required, if you are an individual application you require documents such as Personal profile of the applicant, Passport copy of applicant, Bank reference letter, Proof of residence (utility bills like water/electricity bill evidencing the address of the applicant), Director’s passport copy. (Shall be one director minimum, the shareholder can also become a director) and Power of Attorney in favor of our office to pursue the incorporation process. (Draft will be provided by us) notarized and legalized up to the UAE Embassy/consulate in the country of execution.

And when it comes to Corporate applicant, documents such as Certificate of registration of the company duly legalized and attested by the UAE Embassy/Consulate in the country of origin, Certificate of good standing of the company duly legalized and attested by the UAE Embassy/Consulate in the country of origin, Memorandum and Articles of Association of the company (Applicant Company) duly legalized and attested by the UAE Embassy/Consulate in the country of origin, Bank Reference letter, Board resolution calling for the establishment of an offshore company, appointment of directors (minimum one director) and appointing our office as the company legal representative duly attested by the UAE Embassy/consulate in the country of origin are required.

There is a number of benefits associated with offshore company formation. With business setup services offered by Impressive Companies Representation, you will be able to maneuver freely in the Dubai economy, to set up your own offshore company.

If you are interested, do contact us today.