Dubai’s strategic geographic location between Asia, Africa, and Europe makes it a central trading hub, joining the markets of the West to the East. For those looking to establish a strong international brand presence, Dubai is the best location to start. One of the popular methods of it is through offshore company formation Dubai.
By starting an offshore company in Dubai, you not only get access to the markets from there but also can benefit from UAE’s liberal tax regime and open a business bank account there. This article will discuss the offshore company setup in Dubai and the key essential process and requirements of starting one.
Understanding offshore company in Dubai
A company which is registered in Dubai but operates internationally outside its boundaries is an offshore company in Dubai. It is something different than mainland and free zone business setup in Dubai.
Such a company can operate without having a physical presence in UAE and access a wide range of global markets. These companies are not legally permitted to carry out operations or have a physical office in UAE but can open a business bank account there.
The reason behind such company setup is taking advantage of UAE’s unmatched tax benefits and custom laws. Along with that, UAE government allows many activities for which offshore companies can be registered including general trading, offering services, holding companies, etc.
Benefits of offshore company formation Dubai
Dubai as a business location is very attractive. The government is very supportive and welcomes people from every corner of the world with open arms to invest or start ventures here.
Registering an offshore company offers several benefits for businesses:
- Access to UAE’s stable and business-friendly legal system
- 100% foreign ownership of business
- Quick, simple, and cost-effective setup
- No physical presence requirement cuts down the cost
- Tax liberty that allows saving more of earnings
- Separation and protection of personal assets
- Access to global markets and consumers
- Access to global funding opportunity
- Business bank account in UAE with no currency restrictions
Where can offshore companies be set up in Dubai
In Dubai, an offshore company can be set up in Jebel Ali Free Zone (JAFZA). In UAE, some other jurisdictions also allow offshore company setup including Ras Al Khaimah International Corporate Centre (RAKEZ) and Ajman Free Zone.
Jebel Ali Offshore, Dubai:
JAFZA is one of the world’s largest investment hubs and is perfect for launching an offshore company in Dubai. It is governed by the Jebel Ali Free Zone Authority. Its proximity to Al Maktoum International Airport makes it perfect for global market access.
Here, offshore companies can explore industries such as international trade, investments, and asset-holding companies.
A JAFZA offshore company must meet the minimum shareholder requirement of one, one secretary, and two directors to get registered.
Process of offshore company formation Dubai
Here is the step-by-step guide on offshore company formation Dubai:
Step 1 – Partner with a registered agent:
As a first step, you must look for a registered agent. The duties and roles of an official registered agent include preparing company incorporation documents and facilitating other such processes.
Step 2 – Choose the business activity:
Next, you must decide what business activity and under what industry you want to carry out through your offshore company. The activity you choose must be allowed by the respective authority.
Step 3 – Choose the legal entity to be registered:
You must first decide what legal entity you want to establish. It can be a limited liability company, partnership, holding company, or some other type as permitted by the authority. The legal structure has an impact on the tax liability, control, ownership, and legal law requirements imposed on the business.
Step 4 – Get a suitable name registered:
Next, you must get a suitable business name registered for your offshore company in Dubai. For that, you must submit the proposed name to the relevant authority. They will review the application, checking if it complies with the naming regulations and guidelines. Once they are satisfied, the name will be reserved for your business.
Step 5 – Prepare the documents:
Next, you must prepare all the paperwork, get it attested and translated as needed. Remember, for the registration application, all the documents must be complete and accurate. A professional business setup consultant like Dubiz Business Setup can ensure that your documents are correct and as per requirements.
Step 6 – Apply for registration:
Apply for the offshore company registration with the relevant authority. Fill in the application form in which you must provide basic business details and submit it along with documents. You must also pay the necessary fees. Once the application is approved, your offshore company will be successfully registered.
Step 7 – Open a business bank account:
Finally, you can open a corporate bank account in UAE for your offshore company to manage your money.
Documents for registering offshore company in Dubai
For offshore company formation Dubai, the following documents are generally needed:
- Passport copies
- Address proof
- Resume
- Bank reference letter
- Business plan
- Trade name registration
- Shareholder agreement
- Description of business activities
There may be additional documents that may be asked for by authorities. It is best to get advice from a consultant like Dubiz Business Setup to ensure your documentation is as per the latest legal requirements.
What is the cost of an offshore company setup in Dubai?
The cost of offshore company setup in Dubai starts from AED 19,000*. You can expect the costs to vary based on your specific business requirements.
You can seek guidance from professionals.
Start global brand with Dubiz!
If you want to start an international brand and gain significant advantages, starting an offshore company in Dubai can be a brilliant choice for you. Dubai’s location will allow you to build a strong global brand.
Dubiz Business Setup offers exclusive packages to support offshore company setup in Dubai. They can handle the documentation, approvals, and help you get started in no time. They can also assist with UAE bank account opening for your business. Book a consultation with them today!
