UAE Offshore Company Registration

An offshore company is a type of business entity registered in a jurisdiction different from where its primary operations occur. Establishing an offshore company in the UAE offers exceptional advantages such as significant tax benefits, increased privacy, and access to a stable and welcoming business environment.

At Filings.ae, we excel in streamlining this process, providing thorough guidance at every step. From choosing the most suitable jurisdiction to skillfully managing all legal formalities, our team ensures a smooth and efficient setup. Contact our experts today and take the first step towards establishing your successful UAE offshore company.

What is an Offshore Company?

An offshore company is a business entity established in a country different from where its owners or investors reside. This type of company is incorporated outside the country where its head office is located. An offshore company in Dubai is a corporate entity established in one of Dubai's free zones or another emirate in the UAE. It's designed primarily for business operations outside the UAE. Known as Dubai offshore companies or International companies. These companies are restricted from conducting business within the UAE. They are often used for trading, holding assets or property, or as vehicles for international investments.

Advantages of UAE Offshore Company Registration

Forming an offshore company in the United Arab Emirates offers several advantages:

• International Market and Funding Access: Serves as a gateway for growth in global markets and access to extensive funding.
• Stable Legal System: Offers a reliable and business-friendly legal framework.
• Asset Protection: Allows for separating and protecting assets like intellectual property.
• Tax Exemptions: No corporate or personal income tax at any level.
• Complete Foreign Ownership: No requirement for a local UAE shareholder.
• Efficient Registration Process: The registration can typically be completed within a week.
• No Minimum Capital: No stipulated minimum share capital.
• Easy Share Transferability: Shares in offshore companies can be transferred effortlessly.
• Choice of Governing Law: Flexibility to choose between UAE or home country law.
• Double Tax Treaties: Agreements with over 40 countries.

Taxation Benefits

• Corporate Taxes: Low or no corporate taxes on profits.
• Income Tax: No income tax for company owners and employees.
• Financial Reporting: Simplified system with no annual audit requirement.

Key Jurisdictions offering Offshore Companies in the UAE

Choosing the right jurisdiction is crucial for the success of an offshore entity. Jurisdiction refers to a state or area governed by a specific legal system and courts.

In the UAE, which comprises seven Emirates, each with its judiciary, only three jurisdictions can register offshore companies.

• RAK International Corporate Centre (RAK ICC)
• Jebel Ali Free Zone (JAFZA)
• Ajman Free Zone

These jurisdictions offer unique advantages and legal frameworks that can significantly impact the operation and benefits of an offshore company. Understanding each jurisdiction's specific features and regulations is key to making an informed decision for offshore company formation in the UAE.

Jebel Ali Free Zone (JAFZA) Offshore Company

In 2003, in collaboration with the Dubai Government, JAFZA introduced the Offshore Company under the Jebel Ali Free Zone Offshore Companies Regulations 2003, catering to international businesses.

Characteristics of a JAFZA Offshore Company

• Shareholders: At least one shareholder is required. Both individual and corporate shareholders are allowed. For international corporate shareholders, all company documents must be attested.
• Directors: A minimum of two directors is necessary, but corporate directors are not accepted. Directors' details are kept private and not listed on public records.
• Secretary: Each company must appoint a secretary, and a director can also fulfill this role.
• Share Capital: No minimum share capital requirements exist to set up an offshore company.
• Annual Reporting: Companies must maintain accounting records for ten years. An auditor from an approved list must be appointed to review and report on the accounts.

Advantages of JAFZA Offshore Company Registration

• 100% Foreign Ownership: JAFZA Offshore Companies Regulations allow full foreign ownership without local shareholding requirements.
• Real Estate Ownership in Dubai: JAFZA Offshore Companies can uniquely own real estate in Dubai, subject to Free Zone and developer approval.
• Shareholding in Local UAE Companies: JAFZA Offshore Companies can hold shares in both Free Zone and Onshore (LLC) Companies, with relaxed documentation requirements for the UAE, Bahrain, Saudi Arabia, and Qatar.
• Local Bank Accounts: They can maintain multi-currency bank accounts in the UAE for international transactions.
• Privacy of Shareholders/Directors: Shareholder and director identities are not disclosed on public registers.
• Inspections: The registrar can investigate Offshore Companies, with the company owner potentially responsible for inspection costs.

RAK Offshore Company

Ras al Khaimah (RAK), located about an hour from Dubai, is one of the most rapidly developing Emirates in the UAE. In September 2006, the RAK government introduced the International Company structure, the Ras al Khaimah Offshore Company. This entity type is governed by the Ras Al Khaimah Free Trade Zone Authority International Companies Regulations 2006.

Characteristics of a RAK Offshore Company

• Shareholders: Requires at least one shareholder; corporate shareholders are acceptable. International corporate shareholders need attested company documents.
• Directors: A minimum of one director is necessary, with corporate directors allowed. Directors' details are kept confidential from the public register.
• Secretary: Mandatory to appoint a secretary, and a director can double as the secretary.
• Share Capital: There are no stipulations for minimum share capital.
• Annual Reporting: Companies must maintain accounting records for 7 years, but these records are not required to be filed with the RAK authorities.

Advantages of Establishing a RAK Offshore Company

• 100% Foreign Ownership: RAK International Company Regulations allow complete foreign ownership without local shareholding.
• Shareholding in Local UAE Companies: RAK Offshore Companies are permitted to hold shares in both Free Zone and Onshore (LLC) Companies, with simplified documentation for the UAE, Bahrain, Saudi Arabia, and Qatar.
• Local Bank Accounts: The ability to maintain multi-currency bank accounts in the UAE for international transactions.
• Efficient Incorporation Process: RAK IC company registration is typically completed within a week after submission of all necessary documentation.
• Confidentiality: Shareholder and director identities are not disclosed on public registers.

Ajman Free Zone Offshore Company

Situated in the Emirate of Ajman in the UAE, the Ajman Free Zone offers an offshore regime incorporating companies at competitive prices. While its features are similar to those of a RAK offshore company, it has distinct advantages:

• Cost-Effectiveness: Ajman offshore companies are known for their affordability and minimal operational costs.
• Flexible Business Structure Amendments: Changes, such as updating a corporate shareholder, can be processed swiftly, often within a week.
• Director and Shareholder Requirements: A minimum of one director and one shareholder is required for incorporation, with the flexibility for them to be the same individual.

Documents Required for Offshore Company Registration

To set up an offshore company in the UAE, shareholders and directors typically need to provide the following documents:

• A detailed business plan outlining your business objectives, strategies, and financial projections.
• Recent Bank Statements: Documentation showcasing financial stability and credibility.
• Proof of Address: This can be provided through utility bills or similar documents to verify residential address.
• Passport Copy: Copies of the passports of all shareholders involved in the company.
• Business Name Options: Provide three potential business names that adhere to Dubai's local business naming conventions.
• Business Activity Description: A clear description of the intended business activities of your offshore company.

Procedure for UAE Offshore Company Registration

Starting an offshore company in the UAE involves several steps, which typically include:

Choose a Business Structure

When setting up an offshore company in Dubai, it's important to choose the appropriate business structure, as it significantly impacts management requirements and operational aspects. Here are the key business structures available in Dubai for offshore companies:

Offshore Foundation

This is a separate legal entity without shareholders.

• Typically used by non-profit organizations, social clubs, and associations.
• Offers a distinct legal structure for managing assets and conducting activities.

Offshore Trust

• Suitable for beneficiary planning and asset protection.
• Created outside the individual's country of residence, providing benefits like security, legal protection, and privacy.
• Dubai, a tax haven, offers additional advantages for offshore trusts.

Limited Liability Company (LLC)

• A legal entity formed in a country other than the individual's home country.
• Offers limited liability protection to its owners.
• Income earned through an LLC in Dubai is generally not subject to local taxes.

International Business Company (IBC)

• Ideal for companies conducting business activities outside the UAE.
• IBCs are typically exempt from local taxes and duties in Dubai.
• They are often used for international trade, investment activities, and as holding companies.

Select a Jurisdiction

The UAE has several jurisdictions for offshore company formation, such as Jebel Ali Free Zone (JAFZA) in Dubai, Ras Al Khaimah (RAK), etc. Choose the one that best suits your business needs.

Prepare a Business Plan

Draft a comprehensive business plan outlining your company’s objectives, strategies, and financial projections.

Compile Necessary Documents

Gather required documents such as a detailed description of business activities, copies of shareholders’ passports, proof of address, bank statements, and a list of potential business names.

Choose a Company Name

Ensure your company name adheres to UAE naming conventions and is not already taken.

Register the Company

Submit your application along with all the required documents to the chosen jurisdiction’s offshore company registry.

Open a Bank Account

After registering your company, open a corporate bank account in the UAE. This may require additional documentation and sometimes a visit to the UAE. Our specialists offer assistance with opening bank accounts in the UAE.

Obtain Necessary Licenses

Depending on your business activities, you might need specific licenses to operate legally.

Understand and Comply with Legal Requirements

Ensure you understand and comply with all legal requirements in the UAE, including those related to taxation, accounting, and auditing.

At Filings.ae, we provide expert guidance and support throughout the process to ensure your offshore company's smooth and compliant setup.

Expert Offshore Company Formation with Filings.ae

Filings.ae offers specialized services to assist businesses in setting up offshore companies. With a team of experienced professionals, we provide end-to-end support, guiding you through every step of the process. Whether choosing the right jurisdiction, handling legal documentation, or ensuring compliance with local regulations, Filings.ae ensures a seamless and efficient establishment of your offshore business. Our expertise in the nuances of offshore company formation makes us a reliable partner for entrepreneurs looking to expand their business horizons globally.

Contact our experts today to start a successful offshore company formation in the UAE.