OFFSHORE COMPANY FORMATION UAE
Setting up an offshore company in the UAE offers many benefits, both legally and financially. From confidentiality to enhanced privacy, tax savings and offshore asset protection, the incentives are numerous. Forming an offshore company in the UAE can help your business take that step up, whatever your priority. For example, an offshore company can be used to maintain and create wealth and conduct international trading, contracting, or consulting services, property holding and asset protection activities. Conducting business through a legal entity like an offshore corporation, also provides significant privacy and confidentiality benefits.
RAK OFFSHORE COMPANY FORMATION
Incorporating your company in Ras Al Khaimah provides you with a flexible and credible option through which to run your offshore affairs. RAK offshore company incorporation requires the services of a Registered Agent. Charterhouse Lombard's Dubai branch is an appointed registered agent for the Ras Al Khaimah International Corporate Centre (RAK ICC) in the United Arab Emirates.
If you are considering establishing an offshore company in Ras Al Khaimah and would like to learn more about this jurisdiction and the offshore company formation services we can offer, we would be delighted to hear from you.
JAFZA OFFSHORE COMPANY FORMATION
Jebel Ali Free Zone Authority (JAFZA) is a prominent business centre within the Middle East and is one of the largest and fastest growing free trade zones. JAFZA has experienced exponential growth since its origins in 1985; what started out as only 19 companies has now experienced phenomenal development and now has over 6000 companies. JAFZA Offshore Company Formation offers numerous benefits. As a free trade zone, JAFZA comes with several financial incentives including 100% foreign ownership, 0% personal income tax, No currency restrictions and more.
Choosing the right Jurisdiction
For more information on the differences between JAFZA and RAK Offshore Company Formation, have a read of our article RAK Offshore Company Vs JAFZA Offshore Company – The Pros and Cons. Contact a member of the Charterhouse team for more information about our company formation services in the UAE.
UAE OFFSHORE COMPANY FORMATION FAQs
What is an offshore company?
An offshore firm is a business that conducts its activities outside its country of origin. It can be owned by a single person and it must have a registered office and registered agent in the UAE but cannot trade in the UAE.
What defines an offshore business?
Offshore companies cannot trade in the UAE but can trade with virtually any other country in the world. You must also have a minimum of one director and one shareholder. There are a few restrictions, such as:
Certain types of business are prohibited from operating as an offshore enterprise. This includes those operating in the banking, insurance or finance sectors.
You can’t simultaneously run any commercial activities within the UAE.
You can’t own an interest in property that’s located in the UAE, unless it’s in one of the authority-approved areas.
However, you’ll have the freedom to:
- Have UAE or international bank accounts or elsewhere
- Choose whether to keep records and maintain your books
- Incorporate the company without directors or shareholders being physically present
- Select someone from outside the UAE as a director or shareholder, if you choose to do so
What sort of UAE company?
Many different types of business can be set up as an offshore company in the UAE. These include:
- Trading firms
- Consultancies
- International services
- Professional services
- IBs (intermediary brokers)
- Commission agencies
- Advisory services
- Property ownership / property portfolio services
- Shipping companies
This list isn’t exhaustive. To find out if you’ll be able to form an offshore business in the UAE, get in touch with our team today.
What are the benefits of UAE Offshore Company Formation?
Here are some of the main advantages of forming an offshore company in UAE.
With our help, it’s incredibly easy to register your offshore company. The entire process can be completed in as little as 24 hours. It’s also cheap – incorporation fees are low compared to incorporating an onshore company.
- Freedom to select the right name
You’ll have the option to name your company as you wish – subject to name availability at the Registry, with a few minor restrictions.
There’s no requirement for local shareholding, which means that foreign investors can own 100% of the share equity. This is the case for one individual, or for several corporate bodies.
- No corporation / personal tax to pay
If you set up an offshore business in Dubai (or anywhere in the UAE), there’s no requirement to pay either corporation or personal tax (note, there are a few exceptions to this, such as foreign bank services).
- Ideal for international trade
Setting up an offshore company puts you in a strong position for conducting international business.
Offshore companies tend to have less operational costs. This is because you’re exempt from registration requirements involving property leasing, providing guarantees, or employing staff.
As an offshore enterprise, you’re required to be a limited company (and this should be indicated at the end of your business name). Being a limited firm means reduced liability for all the shareholders, which reduces the financial risks associated with business ownership.
- Privacy and confidentiality
The details of the Ultimate Beneficial Owner are not listed publicly – allowing for confidentiality which many HNWI’s prefer.
- Bank accounts / virtual offices in the UAE
For extra convenience, you’re permitted to have bank accounts in the UAE. You also have the option to have a virtual office in the UAE; an arrangement that offers considerable benefits.
- Shares are easily issued and transferred
Multiple classes of shares can be issued with ease, and it’s simple to transfer them. There are also no limitations regarding minimum share capital.
- You can choose your country of law
If preferred, you can select to operate under English Common Law (for example), rather than local law.
How to form an offshore company in the UAE
There are a variety of regulations and standards to meet when forming an offshore company. These cover several different aspects of the business, such as the number of directors and shareholders, and the level of share capital.
These regulations differ from location to location, which is why it’s useful to work with a professional team like Charterhouse Lombard, who have expert knowledge of the laws and requirements of each area.
The set-up process can be initiated by one person or more. In order to get the process started, you’ll need to submit an application form to the registrar, and the correct supporting documents.
The application form
This form will ask you to provide the following information:
- Names and address of shareholder(s)
- Number of shares held by shareholder(s)
- Value of the shareholdings
- Name and address of director(s)
- Name and address of registered agents
- Articles of association
- Your proposed business activities
Supporting documents
You’ll also be asked to supply certain documents. If you’re an individual, this will include:
- A copy of your passport
- Your personal profile
- Proof of address
If you’re applying as multiple corporate entities, you’ll need to supply:
- Certificates proving the good standing of the company, and the registration
- Articles of association and memorandum
- Board resolution (regarding the formation of an offshore firm)
For more information about our UAE offshore company formation and incorporation services, contact a member of our team.
