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An Ultimate Guide to Setup Company Offshore Dubai
Posted: Jan 22, 2022
For the last few years, entrepreneurs as well as business owners have been focusing on UAE for starting their business. Be it a law firm, accountancy firm, or food trucking, UAE has offered favourable grounds for all. It has a great reputation as an even as well as tax-haven jurisdiction. UAE complies with all the regulations and it has never been black-listed due to compliance with international requirements. Moreover, it has not signed an agreement with Organisation for Economic Co-operation & Development (OCED).
Advantages of Offshore Business Setup in Dubai
Setting up a business in Dubai is a tax-efficient as well as cost-effective corporate structure for the business person and entrepreneurs who want to conduct international trade. In Dubai, an Offshore company is also known as the non-resident company that permits foreign entrepreneurs for serving the Middle East as well as Africa without administrative obligations. Moreover, the business persons have the flexibility for operating via offshore bank account at the international level.
When you register offshore company in Dubai, you get the opportunity to enjoy several benefits such as
- Anonymity: The information of the company is kept confidential. Therefore, the extent of the property portfolio and details of the transaction would not be part of the public records
- Corporate Structure
Inheritance is the key concern among ex-pats. And, it becomes more of a concern when you are not in UAE; however, your assets are. By buying property via offshore business and making that the corporate asset, you would be exempted from the inheritance laws. It would provide you the complete control of how that property would be passed on.
- Tax Exemption: If you set up company Offshore Dubai, you need not pay VAT or corporate tax. Therefore, the profits you generate from the investment are solely yours. It is one of the key reasons that motivates international investors to invest in the city.
Generally, when you start a company in Dubai, you need to have the local partner having a majority share in the business. As the new rules are announced about the full ownership for the ex-pats, they still need to get into effect formally. Currently, the two ways for having 100% ownership is by starting a company in freezone or set up company Offshore in Dubai.
Apart from these, another advantage is limited liability. Along with providing the option of 100% ownership to the investor, the offshore company is treated as LLC (Limited Liability Company). This way personal legal liability is reduced to a great extent. It adds a level of security to the investment.
Procedure for Starting an Offshore Company in Dubai
Starting an offshore business in Dubai is an easy well as the straightforward process that you could complete in a few weeks. The important steps that you need to follow includes
- Selection of Company Name
To register offshore company in Dubai, its name needs to be verified with the Registrar first. Ensure the name of the company doesn’t include the words like Emirate, chartered, cooperative, bank, Royal, chamber of commerce, trust, Municipal, finance, etc. And, it is crucial that the company name has ‘Incorporated or Ltd.’ in the end.
- Fill the Application
After choosing an appropriate name, you need to fill the application form and submit the relevant documents that include
- Identity proof of directors and shareholders
- CV of directors & shareholders
- Address proof of directors & shareholders
- Business plan
- Hierarchy of beneficiaries
It is important to note that the required documents differ between the corporate business entities and the individual shareholder. The individual shareholder needs to submit the residential proof, details of the shareholder/ owner, activities of the company, bank reference document, attested passport copy of shareholder/ owner. Whereas the corporate shareholders need to submit MOA, board resolution, parent company certificating stating name of directors/ shareholders as well as duly attested.
- Document Submission
Once you have collected all the required documents, you need to submit them to the concerned authority. The authorities would review the documents and then issue the appropriate approvals.
- Draft AOA & MOA
After obtaining the approval, you need to draft the MOA (Memorandum of Association) & AOA (Articles of Association) in the English language that is practical for global business. After the preparation of MOA & AOA, the concerned authority reviews the documents and provides approval. On receiving approval, you could start the company officially.
- Open a Bank Account
For setting up a business in Dubai, every business owner requires a bank account. Opening an offshore bank account would help you carry out the transactions of the business easily. It is worth noting that offshore jurisdictions help the business owners in opening an offshore company as well as a bank account in different locations.
With this procedure, moving ahead might seem easy. However, in case you are not familiar with legal regulations, it is advised to consult Offshore company set up agents in Dubai. The experts holding certified knowledge could help you to proceed ahead with the offshore company incorporation process in an error-free way. From selecting the name of the company to opening the bank account, they could assist you at each step.
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