Offshore Company Setup in UAE : All You Need to Know

There are many advantages of having an offshore incorporation in the United Arab Emirates (UAE), including, ideal asset protection, complete foreign ownership, and tax exemptions. To seamlessly meet offshore company formation requirements and ensure compliance with relevant laws in the UAE, it is advisable to seek the expert services of reputable Business Consultants in UAE such as FAR Consulting Middle East.  

Benefits of formation of an offshore company in the UAE

• Tax Exemption: UAE offshore businesses are free from both personal and corporate taxes.
• Complete Foreign Ownership: Without requiring a local sponsor, foreign investors can own all the offshore business.
• Asset Protection: Assets from offshore companies are protected.
• Confidentiality: To protect privacy, information on directors and shareholders is secured and not available for public view.
• Seamless Incorporation: The incorporation procedure is seamless and fast.

Major UAE jurisdictions for offshore company formation in the UAE

The UAE has a few offshore company formation jurisdictions, each with special characteristics:

1. Dubai is home to the Jebel Ali Free Zone Authority (JAFZA), which permits offshore businesses to hold real estate there and requires that they have a minimum of two directors and one secretary. It is required to submit an audit report every year.
2. The International Corporate Center of Ras Al Khaimah (RAK ICC): RAK ICC provides affordable incorporation. It is necessary to have at least one director and one shareholder.
3. Ajman Free Zone: Ajman offshore businesses must have a minimum of one shareholder and one director. It is not required to be physically present at incorporation.

How to Form an Offshore Company in the UAE

The procedure of forming an offshore company in the UAE includes:

• Hire a Registered Agent: In the United Arab Emirates, offshore businesses must be incorporated through a registered agent that has been authorized by the appropriate offshore authority. On behalf of the customer, these agents communicate with authorities and assist with the incorporation procedure.
• Choose Company Name: Pick a distinctive name for your business that adheres to the naming standards of the jurisdiction of your choice. Terms like “bank,” “insurance,” and “trust” shouldn’t be used in the name until the necessary licenses have been acquired.
• Get the documentation ready: Send in the necessary paperwork, such as:

1. 1. Passport Copies: Notarized copies of passports for shareholders and directors.
   2. Proof of Address: Recent utility bills or bank statements as evidence of residential addresses.
   3. Bank Reference Letter: A letter from the individual’s bank confirming a satisfactory relationship.
   4. The company’s structure and operating rules are outlined in the memorandum and articles of association.

• Define Business operations: Clearly state the offshore company’s intended business operations. Special permissions or authorization can be needed for some operations.
• Share Capital Requirements: Although there is usually no minimum amount of share capital needed, it is wise to set aside a suitable sum depending on the operational requirements of the business.
• Appoint Directors and Shareholders: In accordance with the laws of the selected jurisdiction, appoint the necessary number of directors and shareholders. A single person can be both a shareholder and a director.
• Registered Office Address: Within the selected jurisdiction, you must provide a registered office address. The registered agent often plays a role in this.
• Create a Corporate Bank Account: To promote the free flow of money in cross boarder business offshore corporations can open corporate bank accounts with emirates-based banks even though they cannot carry out business in the UAE. Banks may possess different requirements in creating an account.

• Obtain Certificate of Incorporation: The offshore authority will provide the company with a Certificate of Incorporation; this form will confirm that the company is legally existent once the paperwork has been reviewed, and the appropriate fee paid.
• Respect Ongoing Requirements: It can also refer to the following: Continue to obey the legal requirements placed by the power that be as follows:

• Annual Renewals: The company’s registration also must be renewed in time to be in good standing.

• Accounting Records: Documenting is important even though the submission of financial statements may not be compulsory. Annual audit reports are required in certain jurisdictions, such as JAFZA.

FAR Consulting Middle East is your trusted business consultant

It is advisable to seek the expert services reputable business set up consultants such as FAR Consulting Middle East, to seamlessly meet business set up requirements in UAE and ensure compliance with relevant laws. Contact us today and we shall be glad to assist you.