Dubai is an international hub for start-ups and massive business enterprises, it is no doubt that the country will have to initiate means to encourage its Nationals and ex-pats to set up companies in Dubai. There are many options available to you if you want to set up a company in Dubai with massive benefits that come with it and one of such ways is through the setting up of offshore companies in the emirate. Other ways are through the free zone and mainland companies. The formation of your company as an offshore company in Dubai allows your company to carry out business activities outside the UAE and it will not be liable for any form of corporate tax.
An offshore company may be based in Dubai but it cannot carry out any trading activity inside the country or hire people in the country. Another implication of registering an offshore company in Dubai is that all business must sternly occur outside the UAE. But where you intend to carry out business activities in the UAE, you are expected to register a mainland or free zone company.
Prevalent Businesses that can Register as Offshore Companies
There are common business types that normally register their companies as offshore companies which include;
- Intellectual Property (IP) holding companies
- Shipping firms
- Real Estate Firms
- General Trading Firms
- Online advertising companies
- Professional Services and Consulting Firms
- Online advertising companies
- Distribution and Logistics Firms
- Brokers
Benefits of Forming an Offshore Company in Dubai
- Foreign investors are allowed to own 100% shares of the offshore company
- Formation of an offshore company is fast and easy to set up
- It is exempted from taxes and customs duty
- The registered offshore company is entitled to full repatriation of profits
- You are allowed to use any currency as capital for the company
- Single Director and Shareholder are requisite to register the company
- Directors and Shareholders are not expected to register their names and details for public record
- This company also comes with the benefit of allowing you to open a bank account in the UAE
Essential Documents Needed to Register an Offshore Company
- Passport copies of all shareholders
- Provide three options of preferred names which must adhere to local business naming rules
- Residential Address
- A business plan/activities of the company
- Memorandum of Association and Articles of Association
Requisite Steps in Starting an Offshore Company in Dubai
- Decide on the company name which must be in accordance with the laws governing the name of companies in Dubai.
- Complete the required application form together with the necessary documents some of which have been mentioned above.
- Draft a memorandum of association along with articles of association
- Open an onshore bank account
Conclusion
Starting and setting up an offshore company in Dubai can be a bit expensive which is not as questionable as you are set to get quick returns that will not be taxed as well. A successful formation of an offshore company in Dubai comes with limitless opportunities for you.
You can contact us for your free-zone company formation in Dubai, UAE, and offshore company formation in Dubai, UAE for a piece of free legal advice online. We also offer other legal services ranging from compliance, immigration law, family law, and a host of others in the Middle East, Africa, Asia, and India. We assure you that we will tend to your requests professionally.
We at eLegal Consultants look forward to meeting you and are ready to have a hitch-free journey with you to achieve your dreams. Contact Us Today.
