All you need to Know about Offshore Companies in Dubai – [The full Process]
If you want to get the benefits that follow having a business in Dubai but do not have the resources to do so, you have come to the right place. Offshore companies in Dubai are the best option for those wanting to have ownership in Dubai without actually living there.
In this article, we discuss the full process of how to set up an offshore company in Dubai. Furthermore, we give you the information you need to know to set up an offshore company in Dubai. Let’s observe:
- What is the definition of an offshore company?
- Why have offshore companies become so popular in Dubai?
- What are the benefits of an offshore company?
- What kind of companies can become offshore in Dubai?
- How can I set up an offshore company in Dubai?
- How can Connect Zone help you set up an offshore business?
1. What is the definition of an Offshore company?
For many, picturing a place where businesses don’t have to give up a big part of their revenue on taxes would simply be a dream. Additionally, imaging anyone could form a company in any corner of the world and not pay taxes seems rather unreachable. However, in today’s world, this is certainly a handy option for business owners.
An offshore company allows businesses to operate outside their juridical registration. In a nutshell, this means that it is possible to register your company in a country you do not reside in. If that specific place we talk about is Dubai, suddenly that dream world we mentioned seems just around the corner.
There are two jurisdictions available for offshore companies in Dubai. The Ras Al Khaimah and Jebel Ali Free zone are free-taxation zones offering 100% ownership for foreign entrepreneurs. These jurisdictions allow start-up companies to have the benefits of a Dubai company while remaining in a foreign country.
The Ras Al Khaimah is known for having a big influx of foreign Investors. Entrepreneurs from all over the world are usually attracted to its booming economy, innovative architecture, and business-friendly policies. On the other hand, Jebel Ali accounts as one of the free zones with the most international companies. Jebel is amongst the firsts free zones established in the UAE, being among the most progressive zones for businesses.
2. Why have Offshore companies become so popular in Dubai?
Over the past few decades, we have been able to see the rapid surge of these so-called offshore companies. Because of Dubai’s promising economy, many startup companies have become interested in getting Dubai’s jurisdiction and becoming offshore companies.
There are multiple key factors that attract and invite entrepreneurs from all over the world to invest and set up their businesses in Dubai. Overall these attractive features focus mainly on helping business owners to grow their companies both nationally and internationally.
If we consider the amount of revenue international enterprises have to give up in taxes alone, it’s no surprise because offshore companies in Dubai became so popular. For instance, business owners that lack access to a residence visa in Dubai and don’t want to pay an absurd amount of money in taxes can opt for getting an offshore company in Dubai.
Additionally, because of Dubai’s business-friendly policies, there aren’t many restrictions for foreign companies to get an offshore jurisdiction. In fact, getting an offshore company in Dubai can be rather easy when backed with the right assistance. For that matter, here at connect zone, we offer you the best assistance to get your company registered hassle-free, with the help of our capacitated professionals.
3. What are the benefits of an Offshore company?
Depending on the jurisdictional area you choose, the benefits that offshore companies in Dubai receive vary. Besides this, there are various observable differences regarding the requirements and features of offshore companies in Dubai.
For example, getting an offshore registration in JAFZA, can allow you to have local real estate ownership, while a RAK jurisdiction cannot. Differences like this depend mostly on the policies established for each offshore registration zone. However, that isn’t to say that one zone is more favorable than the other, it is just about determining what zone suits you best.
3.1. Here are some of the benefits that a JAFZA jurisdiction can offer
100% foreign ownership – A minimum of one shareholder is required for offshore companies in Dubai located in the JAFZA Zone. Naturally, full foreign ownership is possible to obtain with this jurisdiction.
Shareholding in local companies – Despite the emphasized prohibitions for offshore companies to do business with locals, the authorities do allow shareholding in local companies and free zones companies.
Real estate ownership – One particular feature of the JAFZA offshore companies is the permission for real estate investment. This means that JAFZA offshore companies can directly own real estate. However, to do this you will first need to have a development approval and a free zone approval.
Anonymity – There is no need for public disclosure when it comes to offshore companies in Dubai. In the JAFZA Zone, it is not a requirement for offshore companies to disclose any information about the shareholders or directors in any public register.
Access to a local bank account – Getting access to a local bank account could be considered one of the most essential tools given to offshore companies in Dubai. Additionally, with a local bank account, you will be able to do multi-currency transactions both nationally and internationally.
3.2. Here are some of the benefits that a RAK jurisdiction can offer
100% ownership for foreigners – As we are speaking about offshore companies in Dubai, the main benefit of getting a RAK jurisdiction is being able to own your business without a local partner involved. Furthermore this jurisdiction requires a minimum of one shareholder to get a RAK jurisdiction.
Fast incorporation – Thanks to the diligent and rapid services of the RAK registration process, companies can be registered within one week. If you want to get your RAK jurisdiction within no time, Connect Zone can help you make sure all your documents are error-free. Furthermore, our team of specialized VAT professionals can register your company hassle-free as well as assist you on any bookkeeping or tax service you may need.
Company administration – While it is a requirement for your company to have at least one secretary and one director, there is no need to disclose any information about your company’s administration to the public.
Shareholder’s anonymity – As well as we previously explained for the administrative activity of your company, there are no requirements for you to publicly disclose information about your shareholders.
Local bank account access – Just like the JAFZA jurisdiction, the RAK jurisdiction provides access to a national bank account. Further allowing your business to do both national and international multi-currency transactions and invest in local companies.
3.3 Some of the most general benefits that Offshore companies in Dubai can get may include:
- Tax neutrality for both national and international company profits.
- A stable economy and a business-friendly legal system.
- Provides security to companies with trademarked content.
- Easy setup process.
- Trading commodities, both nationally and internationally.
- Complete anonymity of your name. This will not be in any public documentation.
4. What kind of companies can become offshore in Dubai?
Now that you know the benefits offshore companies in Dubai have, let’s check what companies fit into the offshore model. For instance, knowing what kind of license your company needs is crucial. This is because there are only a certain number of licenses available for offshore registration.
For that matter, here at Connect Zone we want to help you through the entire registration process. From personalized assessment for your company, to register your company hassle-free in the right jurisdiction with the right license. Our team of VAT specialized representatives can give you the assistance you need during the extension of this process.
Now, let’s determine what specific licenses are available for offshore companies in Dubai:
International trading License – In an offshore trading company, it is possible for you to contact consumers directly. This means that you can receive and send the orders, and additionally deliver the products directly to a manufacturing company.
Professional license – This license is available for businesses focused on providing professional services. The professional service industry is a big part of the offshore companies in Dubai. They mostly account for professional assistance in legal or administrative areas.
Commercial license – Offshore companies in Dubai that hold commercial licenses account mostly for property holding. This includes specific cases in which offshore companies are bought with the only purpose of holding a property in a low-cost zone and distributing the shares as desired. Examples of these cases can be inheritance procedures or marital divorces in which the shared need to be distributed.
5. How can I set up an Offshore company in Dubai?
Considering the ever-growing economic scene that we can see Dubai becoming, it is no surprise that the offshore market is growing faster than ever. With all the benefits and facilities that Dubai offers to newcomers, it is only imaginable the amount people looking to get offshore jurisdiction in Dubai.
5.1. Here are the steps you need to take in order to get an offshore registration:
Select your company’s name – This name has to be original. For that, Connect zone has an already established registration process to help you verify the name you chose hasn’t already been claimed.
Select the right activity for your company – Choosing the right activity your company will do is crucial. With that information Connect Zone can help you get into a jurisdiction that suits best your company.
Select the right license – This will ensure you that your company is in fact capable of operating in an offshore jurisdiction. This is because, depending on your company’s operations, there might not be a license that suits your company. In order to avoid that, Connect Zone has a team of experienced specialists ready to help you select the most suitable license for your company.
Gather and send the required documentation – By this point you’ll have to submit the pertinent documents required for offshore companies in Dubai. These documents include; proprietorship documents of the company you are registering and personal documents.
5.2. What documents do I need to register an offshore company?
While establishing an offshore company in Dubai may sound simple, there are a few requirements that you need to meet in order to get there. This is assuming that you have the legal knowledge to submit all of your documentation free of error and with the right information in it. Here is a list of all the documentation you will need:
- A reference letter from your bank – This will have a summary of all the transactions you have done with it over the past six months.
- The memorandum of association of your company – This document will show the information and positions of all the shareholders in your company (In case there are more than one).
- Current jurisdiction of the company’s owner.
- Copies of the passports belonging to the shareholders and employees.
6. How can Connect Zone help you set up an offshore business?
Getting an offshore company in Dubai isn’t as simple as it may sound and establishing an offshore business can be rather tricky. For some, the process may look simple, but the truth says otherwise. For that Connect Zone wants to help you get this process just right.
Connect Zone has multiple services that can make your registration process easier. With over twenty years of experience setting offshore companies in Dubai, Connect Zone can help you register your company hassle-free, and aid with any bookkeeping required for your company.
If you are interested to know more about how we can help you, you can contact us at email@example.com, or you can give us a call on + 1 (971) 4331-6688 and one of our expert representatives will gladly answer all your inquiries.