Each business entrepreneurs wants the most cost-effective and supportive business environment. The investors are always looking forward to investing their money in a place where they can get most profits. Judging from various positive perspectives, Dubai is the perfect place for offshore businesses startups. The increased dominant hub of technology is the key to make Dubai the thriving business hub of Middle Eastern.
Dubai is the best possible choice for offshore company formation because of its very crowded and bustling nature. It has so many opportunities for entrepreneurs to do business all around the world.
- Offshore can have the highest level of privacy and asset protection
- No need for accountant costs
- Can gain greater economic stability
Dubai has a more stable and business friendly legal system for offshore. This is why in Dubai offshore company is becoming one of the most widespread kinds of business setup. The offshore company formation in Dubai is so easy that it can take only some weeks to complete. The formation process for an offshore company in Dubai depends on where one chooses to set up. Though, there are some requirements to do the formation of an offshore company in Dubai.
Required Documents for Setting up an Offshore Company
The first step of an offshore company formation in Dubai is arranging some required documents. The following are the documents that are necessary for the application of registration for an offshore company:
For individual applicant or shareholders-
- Shareholder’s personal profile
- Shareholder’s attested passport copy (notarized)
- Genuine bank reference letter
- Original residential proof of shareholder’s (can be utility bills like water/electricity bill)
- Preferred name of the offshore company (3-5 choice)
- Chosen activities of the new set up offshore company
- The hierarchy of the ultimate beneficiaries
For Corporate shareholders-
- Parent company’s certificate attested with the shareholders/director’s name.
- Attested incorporation certificate or trade license copy.
- Bank reference letter (original).
- Attested and legalized Memorandum of Association (MOA) of the Applicant Company.
- Good standing certificate of the parent company.
- Passport Copies of the directors, shareholders and parent company’s financial record.
Note: There must be at least one director, the shareholder can also become a director. The bank reference letter and utility bill must be in English and addressed to the offshore jurisdiction of the UAE. The application form must go with the memorandum and association articles proposed by the offshore company.
The offshore company should file all the correct required documents. Any errors in these documents can lead to a delay or even the rejection of the application. So the new offshore company can work with a company formation specialist to manage the entire application process.
Least required capital for offshore company setup in Dubai
- The UAE offshore company owners determine the share capital for Dubai offshore company setup.
- The offshore company should state the proposed capital in the MOA application form.
- The value of the share capital can be AE Dirham and the US dollar.
Read Also: How to register a company in Dubai, UAE?
Comparison with Register Company
There are three offshore jurisdictions in the United Arab Emirates (Jebel Ali, Ras Al Khaimah (RAK) and Ajman). These offshore jurisdictions have their own registration authorizations. The offshore company must follow the laws and regulations of offshore jurisdiction companies. The offshore company must not exchange in offshore jurisdictions.
A comparison between UAE offshore companies for registration Jebel Ali in Dubai, Ajman offshore company and Ras Al Khaimah (RAK) (jurisdictions)
|Q/A||Jebel Ali offshore company||RAK offshore company||Ajman offshore company|
|Summary at a Glance||USD||USD||USD|
|Company set up costs||USD||USD||USD|
|Later annual costs||USD||USD||USD|
|How long to set the company up?||10 to 15 days||10 to 15 days||10 to 15 days|
|Are there any restriction on activities?||Yes||No||No|
|Documents that are needed to be legalized by Client||Yes||No||Yes|
The measures and expected costs of registering an offshore company (in 2017)
|Application for the certificate of incorporation||US $ 550|
|Annual fee for registration of an offshore company||US $ 410|
|Registration of the Memorandum and Articles of Association||US $ 140|
|Submission of the corporate documents to the registrar||US $ 140|
|Total fees payable to the registrar of offshore companies||US $ 1665|
Other fees to set up an offshore company in Dubai
- Corporate bank account opening fees,
- licensing fees,
- visa processing fees,
- Office yearly rental fees.
Opening offshore bank in Dubai
Opening bank account for an offshore company is a common need for the formation process in Dubai. The offshore jurisdictions are working hard with all the UAE banks to open bank accounts for offshore companies in Dubai.
Yearly requirements for offshore company in Dubai
|Annual Renewal of offshore company formation in Dubai||Yes|
|Annual Reporting of offshore companies’ formation in Dubai||No|
|KYC information to offshore company formation agents||Yes|
Rules, regulations and restrictions
- An Offshore Company in Dubai is can’t do any trade in the United Arab Emirates (UAE),
- The offshore Company can’t lend local premises in the UAE,
- The offshore company in Dubai must present audited economic statements yearly to the Dubai Government.
- UAE Offshore Company formation can’t carry on any business operations within the UAE.
Benefits of an offshore company formation
Starting an offshore company in Dubai can benefit in many ways:
- 100% tax free country for offshore business
- 100% foreign ownership is allowed
- Complete anonymity, confidentiality, and a high degree of privacy in operations
- Cost effective and cheap formation option for offshore company
- Physical office, staff not required for offshore company incorporation in Dubai and so on.
- An offshore company in Dubai isn’t allowed to trade in Dubai and the UAE;
- The offshore entity can’t either hire staff in the UAE nor secure work visa for staff;
- Incorporation of an offshore company in Dubai can be pricey;
- Some Dubai banks give inadequate customer service support;
- An offshore business in Dubai can’t invest in UAE real estate.
Dubai is one of the fastest growing international business spots for starting an offshore company. It has a high reputation for providing a secure, tax-free environment and jurisdiction companies. So offshore companies can have complete protection for their valuable business assets and international business trading.