OFFSHORE COMPANY
FORMATION SERVICES
IN DUBAI & THE UAE

OFFSHORE
COMPANY SETUP
IN DUBAI & UAE

Establishing an offshore company in the UAE is an excellent choice for businesses seeking tax advantages, confidentiality, and strategic positioning. The UAE’s favourable business climate and robust legal framework make it a premier destination for such entities. Offshore companies in the UAE differ from Free Zone companies as they are set up to operate outside their registered jurisdiction or the location of their ultimate ownership.

ADVANTAGES OF OFFSHORE COMPANY FORMATION IN THE UAE

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LEGAL FRAMEWORK FOR OFFSHORE COMPANY FORMATION IN THE UAE

The UAE offers a secure and transparent environment for offshore companies, supported by a well-defined legal framework. This framework combines federal legislation with regulations specific to individual jurisdictions.

FEDERAL LEGISLATION:

Federal Decree-Law No. (32) of 2021 on Commercial Companies (New Companies Law): This law establishes the foundation for company formation throughout the UAE, including offshore entities.

JURISDICTIONAL REGULATIONS:

The UAE provides several attractive locations for offshore company formation, each with its own regulations:

Ras Al Khaimah International Corporate Centre (RAKICC): RAKICC offers a business-friendly environment with streamlined processes for setting up your offshore company.
Abu Dhabi Global Markets (ADGM): ADGM caters to a wide range of international businesses seeking a robust regulatory framework and access to global financial markets.
Dubai International Financial Centre (DIFC): DIFC is a leading international financial hub offering a sophisticated legal and regulatory system for offshore companies.

KEY BENEFITS OF UAE OFFSHORE COMPANIES:

Tax-Free Environment: All three jurisdictions boast a tax-free environment with no corporate or income taxes.
100% Foreign Ownership: You can own and operate your offshore company with complete foreign ownership.
Global Business Operations: Conduct international business activities while maintaining multi-currency accounts within the UAE.

IMPORTANT CONSIDERATIONS:

Restrictions on Local Business: Offshore companies cannot conduct business directly with residents within the UAE.
Physical Presence: Maintaining a physical office within the UAE is not permitted for offshore entities.

Creation Business Consultants can help you navigate the legal framework and select the most suitable jurisdiction for your needs. We will guide you through the process of establishing your successful offshore company in the UAE.

TYPES OF OFFSHORE ENTITIES/STRUCTURES AVAILABLE

The UAE offers a variety of offshore company structures to cater to your specific business needs. Here are some of the most common options:

Limited Liability Companies (LLCs): A popular choice for entrepreneurs, offering limited liability protection for owners, meaning their personal assets are shielded from business debts.
Private Limited Companies: Like LLCs, but with more stringent regulations regarding ownership and management structures.
Holding Companies: Ideal for managing investments and subsidiaries across multiple jurisdictions, providing a centralized structure for your global operations.
Special Purpose Vehicles (SPVs): Tailored for specific business activities or projects, offering a flexible structure to meet your unique requirements.

REQUIREMENTS & ELIGIBILITY CRITERIA FOR ESTABLISHING AN OFFSHORE COMPANY

Establishing an offshore company in the UAE generally requires meeting the following criteria:

Minimum Shareholders: At least one shareholder (individual or corporate) is typically required.
Minimum Directors: A minimum of one director is usually necessary.
Local Registered Agent: You will need a registered agent with a physical presence in the chosen jurisdiction (RAKICC, ADGM, DIFC).
Jurisdictional Requirements: Specific regulations may vary depending on the chosen jurisdiction. We recommend consulting with our team to determine the best fit for your needs.

OFFSHORE COMPANIES COMPLIANCE & REPORTING OBLIGATIONS

Operating an offshore company in the UAE comes with certain compliance responsibilities:

Maintaining Accounting Records: Accurate accounting records must be kept for all your business activities.
Annual Audits: Regular audits may be required, depending on the jurisdiction and company structure.
Beneficial Ownership Reporting: Transparency is essential, and reporting of beneficial ownership information is mandatory.
Ensuring Compliance: Staying compliant with UAE regulations is key for the smooth operation of your offshore company. Creation Business Consultants has extensive experience operating the legal landscape and can guide you through the entire process.

CHOOSING THE APPROPRIATE JURISDICTION WITHIN THE UAE FOR OFFSHORE COMPANY FORMATION

ADGM OFFSHORE COMPANY FORMATION

The Abu Dhabi Global Market (ADGM) offers a sophisticated regulatory environment with a common law framework, ideal for financial and non-financial entities.

KEY BENEFITS OF ADGM OFFSHORE COMPANY FORMATION:

100% Foreign Ownership: Complete foreign ownership without local partner requirements.
No Taxes: Exemption from corporate, income, and withholding taxes.
Strong Legal Framework: Based on English common law.
Global Market Access: Excellent connectivity and strategic location.

DIFC OFFSHORE COMPANY FORMATION

The Dubai International Financial Centre (DIFC) is a globally recognized financial hub with its own independent legal system and courts.

KEY BENEFITS OF DIFC OFFSHORE COMPANY FORMATION:

100% Foreign Ownership: Full foreign ownership with no restrictions.
Zero Taxes: Exemption from corporate and income taxes.
Independent Legal System: English common law framework.
World-Class Infrastructure: State-of-the-art facilities and services.

RAK OFFSHORE COMPANY FORMATION

Ras Al Khaimah (RAK) is a rapidly growing emirate with a high level of industrialization and a competitive business environment. Setting up a business in RAK can be significantly less expensive than in other parts of the UAE, providing a substantial return on investment.

The RAK Offshore Company structure, governed by the Ras Al Khaimah Free Trade Zone Authority International Companies Regulations of 2006, offers a business-friendly environment and competitive operational costs.

KEY BENEFITS OF OPENING A RAK OFFSHORE COMPANY:

100% Foreign Ownership: Complete foreign ownership without the need for local shareholding.
Holding Shares in Local Companies: Offshore companies can hold shares in Free Zone and Onshore (LLC) Companies without document attestation for use in the UAE, Bahrain, Saudi Arabia, and Qatar.
Local Bank Account: Offshore companies can open multi-currency bank accounts in the UAE, facilitating routine international transactions with ease.
Fast Incorporation: Registering a RAK IC company typically takes about one week once all application and due diligence documents are submitted.

TRUSTS AND FOUNDATIONS

Creation Business Consultants offers comprehensive Trusts and Foundations services for high-profile individuals and business leaders seeking efficient wealth and estate management solutions. Trusts and Foundations in the UAE benefit from a robust regulatory framework, strong asset protection, and advantageous tax benefits, particularly through strategic partnerships with RAKICC, ADGM and DIFC.

KEY SERVICES:

Initial consultation.
Legal paperwork.
Ongoing management of Trusts and Foundations.

Our approach ensures your wealth is secured and your legacy robust for future generations.

SPVS AND HOLDING COMPANIES

Our services for Special Purpose Vehicles (SPVs) and Holding Companies are designed to manage financial risks, assets, and facilitate international business operations. Through our partnership with RAK ICC and ADGM, we offer a supportive business environment with strong corporate laws and significant tax benefits.

KEY SERVICES:

Establishment of SPVs and Holding Companies.
Operational management.
Strategic financial management.

We aim to optimize business performance and manage risks effectively in today’s global market.

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KEY CONSIDERATIONS FOR OFFSHORE COMPANY FORMATION

Selecting the right jurisdiction within the UAE is important, considering regulatory environment, setup costs, and specific benefits of each free zone.

OPENING BANK ACCOUNTS AND ACCESS TO FINANCIAL SERVICES

Establishing a corporate bank account is essential. The UAE’s robust banking sector caters to offshore companies with numerous local and international banks. Having a registered corporate service provider is key to supporting you in opening a corporate bank account for your offshore company. Here is a breakdown of the process:

Eligibility: Most jurisdictions in the UAE (RAKICC, ADGM, DIFC) allow offshore companies to open corporate bank accounts.
Requirements: Banks will typically require documentation such as your company’s Certificate of Incorporation, Memorandum & Articles of Association, and beneficial ownership information etc.
Choosing a Bank: Different banks offer varying account features and fees. Creation Business Consultants can assist you in selecting a bank that best suits your business needs.

Important Considerations:

Due Diligence: Banks conduct thorough due diligence procedures before opening accounts. Ensure your company documentation is complete and compliant.
Account Features: Not all features may be available for offshore accounts compared to onshore accounts. Discuss your specific requirements with the chosen bank.

Benefits of a UAE Offshore Bank Account:

Multiple Currencies: Manage your finances in various currencies, facilitating international transactions.
Simplified Transactions: Streamline business payments and receipts globally.
Enhanced Security: Benefit from the UAE’s robust banking system and secure financial environment.

NOMINEE SERVICES AND CORPORATE GOVERNANCE

Using nominee services for directors and shareholders enhances privacy and streamlines corporate governance.

REAL ESTATE OWNERSHIP AND INVESTMENT REGULATIONS

Offshore companies in the UAE can own property and invest in real estate, subject to specific regulations depending on the jurisdiction.

PROCESS OF SETTING UP AN OFFSHORE COMPANY IN DUBAI & THE UAE

Setting up an offshore company in Dubai & the UAE involves several important steps:

Choose Your Business Structure: Select the most appropriate business structure for your offshore company.
Open an Offshore Bank Account: Gather the necessary documents to open an offshore bank account:
- Director’s registration.
- Incorporation certificate.
- Financial statement.
- Proof of registered address.
- Shareholder certificate.

Cost of Establishing an Offshore Company: The costs associated with opening an offshore company in Dubai and the UAE can vary based on several factors including: the company type, required services, and service provider fees.

Note: This guide offers a broad overview. It is advisable to seek professional guidance to ensure a smooth and compliant process for setting up an offshore company in Dubai and the UAE.

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UAE OFFSHORE COMPANY FORMATION SERVICES FAQs

HOW LONG DOES IT TAKE TO SET UP AN OFFSHORE COMPANY IN DUBAI AND THE UAE?

The timeframe for setting up an offshore company in Dubai or the UAE can vary depending on a few factors, but it’s generally a fast and efficient process. Here is an overview:

Ideal scenario: In ideal circumstances, with all necessary documentation readily available and minimal delays, incorporating an offshore company in the UAE can take as little as 3-4 business days.
Average timeframe: On average, allowing for standard processing times and potential clarifications, setting up your offshore company can be completed within 1-2 weeks.
Factors affecting speed: The complexity of your company structure, chosen jurisdiction (RAKICC, ADGM, DIFC), and any additional services required (e.g., opening a bank account) can influence the overall timeline.

Want to expedite setting up your UAE offshore company? Contact Creation Business Consultants today at [email protected]

WHAT ARE THE COSTS ASSOCIATED WITH OFFSHORE COMPANY FORMATION IN DUBAI & THE UAE?

The cost of setting up an offshore company in Dubai or the UAE can vary depending on several factors, but here is a breakdown to give you a general idea:

Government registration fees: These fees depend on the chosen jurisdiction (RAKICC, ADGM, DIFC) and will range.
Registered agent fees: A local registered agent is mandatory, and our fees can vary but usually depending on the jurisdiction.
Business service provider fees: Creation Business Consultants offers comprehensive incorporation packages to streamline the process. Our fees are competitive and depend on the chosen services and company structure.

Additional potential costs:

Bank account opening fees: Opening a corporate bank account in the UAE can incur fees depending on the chosen bank and account type.

Here at Creation Business Consultants, we offer transparent pricing and can provide a personalized proposal based on your business needs. Contact us today for a free consultation email [email protected]

ARE THERE ANY RESTRICTIONS ON BUSINESS ACTIVITIES FOR OFFSHORE COMPANIES IN THE UAE?

Yes, there are some restrictions on business activities for offshore companies in Dubai and the UAE. These limitations are in place to maintain a clear distinction between offshore and onshore companies:

Restricted Business Activities: Offshore companies cannot conduct business directly within the UAE mainland. This means they cannot sell goods or services to individuals or companies physically located there.
Physical Presence: Offshore entities are not permitted to have a physical office or operate a commercial presence within the UAE. They cannot hold retail space, warehouses, or employ staff directly in the country.

However, offshore companies in the UAE can still engage in a wide range of international business activities, including:

International trade: Importing, exporting, and re-exporting goods globally.
Holding company functions: Owning and managing subsidiaries in other countries.
Investment activities: Holding stocks, bonds, and other investment instruments.
Intellectual property management: Owning and licensing patents, trademarks, and copyrights.

Choosing the Right Jurisdiction:

The specific restrictions may vary slightly depending on the chosen jurisdiction (RAKICC, ADGM, DIFC). Our team at Creation Business Consultants can advise you on the most suitable jurisdiction based on your intended business activities.

It is important to comply with UAE regulations and avoid any activities that could be seen as conducting business onshore. Contact us to discuss your business goals and ensure your offshore company operates within the legal framework.

IS IT NECESSARY TO HAVE A PHYSICAL OFFICE SPACE FOR AN OFFSHORE COMPANY IN THE UAE?

No, a physical office space is not required for an offshore company in Dubai and the UAE. This simplifies offshore company setup process and reduces costs. Here is why:

Focus on International Activities: Offshore companies deal in international trade, investments, etc., not the local UAE market.
No Local Business: They cannot conduct business with UAE residents directly, eliminating the need for a physical presence.

Important Considerations:

Registered Agent Address: You will need a registered agent with a local address (RAKICC, ADGM, DIFC) for official mail. Creation Business Consultants can accommodate help you find one.
Business Meetings: Consider co-working spaces or virtual office solutions if you need to hold meetings in the UAE.

Contact us to discuss your business goals and explore the advantages of an offshore company in Dubai and the UAE. We can guide you through the entire process and ensure compliance.

ARE SHAREHOLDERS REQUIRED TO VISIT THE UAE TO REGISTER A UAE OFFSHORE COMPANY?

No, shareholders typically do not need to visit the UAE to register an offshore company. This is a major advantage of incorporating an offshore entity in the UAE, allowing for a remote and convenient setup process. Here is why physical presence is not mandatory:

Streamlined Process: The registration process is designed to be efficient and can be completed electronically in most cases.
Remote Completion: All necessary documentation and applications can be submitted remotely without requiring shareholder travel.

We will advise you on the specific requirements for your chosen jurisdiction (RAKICC, ADGM, DIFC) and ensure a smooth registration process.

Contact us at [email protected] to discuss your business goals and explore the benefits of forming an offshore company in the UAE. We can guide you through the entire process remotely, from initial consultation to successful registration.

ARE THERE RESIDENCY REQUIREMENTS FOR SHAREHOLDERS OR DIRECTORS OF AN OFFSHORE COMPANY IN DUBAI & THE UAE?

No, residency requirements are not a factor for shareholders or directors of an offshore company in Dubai and the UAE. This adds to the flexibility and accessibility of incorporating an offshore entity in the UAE. Here is why residency is not a concern:

Global Ownership: Shareholders and directors can be residents of any country, promoting international participation.
Remote Management: You can manage your offshore company remotely without needing to reside in the UAE.

Important Considerations:

Nominee Services: While residency is not mandatory, some individuals may prefer to appoint nominee directors for added privacy. Creation Business Consultants can advise you on nominee services if required.
Visa Requirements: If you plan to visit the UAE for business purposes unrelated to the offshore company, you may need a separate visa depending on your nationality and the duration of your stay.

Contact us at [email protected] to discuss your specific business goals and explore the advantages of establishing an offshore company in Dubai and the UAE. We can guide you through the process and ensure a hassle-free setup regardless of your residency status.

DO I NEED TO HAVE A LOCAL SPONSOR OR PARTNER TO ESTABLISH AN OFFSHORE COMPANY IN DUBAI AND THE UAE?

No, you don’t need a local sponsor or partner to establish an offshore company in Dubai and the UAE. While a local sponsor is not required, you will need a registered agent with a physical address in the chosen jurisdiction (RAKICC, ADGM, DIFC) to handle official correspondence. Creation Business Consultants can assist you with this mandatory requirement.

To discuss your business goals and explore the advantages of establishing an offshore company in Dubai and the UAE email [email protected] for your free consultation. We can guide you through the process and ensure a smooth offshore company setup without the need for a local sponsor.

ARE OFFSHORE COMPANIES IN DUBAI/UAE SUBJECT TO CORPORATE OR INCOME TAX?

Generally, no, offshore companies in Dubai and the UAE are not subject to corporate or income tax.

This is one of the primary advantages of incorporating an offshore company in the UAE. Here is a breakdown of the tax benefits:

Tax Exemptions: Offshore companies enjoy exemptions from corporate income tax, personal income tax, capital gains tax, and inheritance tax (depending on the jurisdiction).
Attractive Tax Environment: This makes the UAE a highly attractive location for international businesses seeking tax optimization strategies.

Important Considerations:

Tax Residency: The tax exemption typically applies to income derived from offshore business activities. If an offshore company starts conducting business directly within the UAE mainland, it may become subject to corporate tax.
Double Taxation Treaties: The UAE has double taxation treaties with many countries, further reducing potential tax liabilities for offshore companies.

Creation Business Consultants Can Advise You:

While the tax environment is generally favourable for offshore companies, understanding the specific situations is crucial. We can help you with:

Understanding Tax Implications: We will analyse your business activities and advise on the potential tax implications associated with your chosen offshore structure.
Tax-Efficient Strategies: We can assist you in developing tax-efficient strategies to maximize the benefits of your offshore company.

Contact us to discuss your business goals and explore the tax advantages of establishing an offshore company in Dubai and the UAE. We can guide you towards a tax-efficient structure that aligns with your specific needs. Email [email protected] or [email protected] for your initial free consultation.