Offshore Company Setup in Dubai
Offshore Company Setup in Dubai is most sought after by foreign company owners settled overseas. For those looking for a tax haven and a trusted business jurisdiction, Offshore Company Registration in Dubai, UAE is an ideal choice.
The Offshore jurisdiction policies of the UAE are well-defined and governed by the specific offshore licensing authorities. The offshore company setup in Dubai is a legitimate option for overseas investors to shift their base to the UAE.
The overseas investor will receive a Certificate of Incorporation, Memorandum of Association, and Articles of Association upon the registration of their Offshore Company in the UAE. The Offshore Companies are popularly known as ‘International Business Company’ in the UAE.
Offshore Companies vs. Onshore Companies in the UAE
Often foreign investors get confused with Offshore and Onshore Companies in the UAE. There are major differences between an Offshore and Onshore Company. Firstly, the Offshore Companies do not come under the UAE’s territorial scope and hence are out of the Tax regime.
Also, the Offshore Companies in UAE are not eligible to trade in the local UAE market. Additionally, they are not eligible to take an office space or apply for a UAE residence visa. Offshore Companies are a perfect option to facilitate various business activities such as international trade, consulting, ship channeling, Intellectual Property management, and more.
Alternatively, foreign investors who are interested in starting a company in Dubai, UAE can look at onshore companies. These are the Free Trade Zones and the Dubai Mainland Companies. There are numerous advantages to opening a Free Zone company or a Mainland Company in Dubai when compared to registering an Offshore Company in UAE. For Onshore Companies, Foreign investors can open a physical office in the UAE, apply for a UAE resident visa, sponsor employees under the company, open a corporate bank account easily, start trading in the UAE market, purchase a property, and more.
Offshore Company Formation – Quick Facts
An Offshore Company is formed by a foreign investor mainly for tax savings. Foreign investors operating trading companies, consultancy services, etc., in high tax-paying countries, can look at Offshore Companies in UAE as a tax savings instrument.
They can shift their core operations, invoicing, strategic decision-making, international consulting, etc., to the Offshore Company’s purview. It will also help them to better structure the company operations for catering to international operations.
Also, Offshore Company Formation in the UAE is the right investment strategy for High net-worth Individuals. Offshore companies help to manage their lifestyle assets such as Yachts, Ships, Private Aircraft, etc.
Furthermore, there are many reasons for the UAE Offshore Jurisdiction’s popularity among global investors. The Offshore Company will act as a platform to hold all the assets of the shareholders.
The Offshore companies in the UAE are governed by the three Major Offshore Jurisdictions of the UAE:
Offshore Companies enjoy the Zero Taxation policy of the UAE unlike the companies operating onshore in the UAE. There is no Value Added Tax or Corporate Tax applicable to the Offshore Companies as they do not indulge in any trade operations with the UAE Mainland.
Also, the Offshore Company will not have any physical address in the UAE. The physical address location of the Registered Agent will be the Address of the Offshore Company.
Popular International Offshore Jurisdiction
A few of the Popular Offshore Jurisdictions of the world are the RAKICC, Ajman Offshore, Jafza Offshore, British Virgin Islands, Cayman Islands, Nevis, and Belize. Offshore Company Formation offers investors the flexibility to trade in multiple currencies, open a bank account globally, and facilitate global trade.
International Offshore locations are preferred by foreign investors due to several advantages. The major one is the confidentiality of company ownership details. Additionally, the secured operations and secrecy of bank account details is a key advantage of Offshore Companies.
Aurion Offers an Exclusive Offshore Company Formation Package for RAKICC, Ajman Offshore, JAFZA Offshore, and BVI Offshore Jurisdictions.
Cost of Setting Up an Offshore Company in UAE
Ajman Offshore offers the cheapest option for setting up an offshore company in the UAE. The cost of setting up an offshore company in the UAE is AED 7,500. The investor upon setting up the offshore company will receive the company incorporation certificate and supporting documents.
The offshore company formation takes about 3 working days. AURION being the Registered Offshore Agent in UAE supports investors in the complete Offshore Company Registration process. The Team will prepare the application form and submit the required documents to the Licensing Authority.
| Offshore Company Formation Fees | |
|---|---|
| Offshore Company Formation Cost – Inclusive of Offshore formation fee, Registered agent fee, Registered Office Address fee, Bank account opening assistance fee & Company Stamp | AED 7,500 |
| Required Documents | Passport Copy, Address Proof, Bank Reference Letter |
| List of Deliverables | Incorporation Certificate, MOA, Share Certificate, Company Stamp |
| Bank Account Support | Emirates NBD, Mashreq Bank, Banque Misr, etc. |
| Office Address – Registered Agent (Aurion) | SAIF Suite Z-02-03, Sharjah, P.O Box 122390, UAE |
Also, the AURION will make the required fee payment on behalf of the investor and coordinate to obtain the Offshore Company Incorporation Certificate at the earliest. For the Investor to register an Offshore Company in UAE, they have to take the assistance of a Registered Agent who has a physical office and presence in UAE.
The Offshore Consultant/ Registered Agent will start the process of offshore company formation the right way. The Offshore Agent will ensure the investor receives the Company documents on time. The offshore company formation process is relatively straightforward and has to be started through an experienced Offshore Agent such as AURION.
Why Set up an Offshore company in the UAE?
An Offshore Company set up helps the investors to execute the below business activities in a more effective and secure way.
International Trading:- Easily facilitate international trade and carry out global transactions without any hassle through an offshore company.
Professional Services:- Conduct global consulting and management services through an offshore company. Gain tax benefits and work remotely from anywhere in the world.
Own properties in the UAE:- An Offshore Company can be used to purchase property in certain areas in the UAE as specified by the Offshore Jurisdiction.
Investment Companies:- Individual stakeholders can invest in multiple projects through an offshore company. The Offshore Company name can be used as a corporate Investor without disclosing the shareholder details.
Copyrights, Trademarks and Patents:- All sorts of copyrights, trademarks and patents can be registered in the name of the Offshore Company.
Holding Companies:- An Offshore Company can act as a holding company. Shareholders can aggregate all their business establishments under one holding company.
Benefits - Offshore Company in UAE
- Confidentiality and Privacy
- 100% Asset Protection and Security
- No Audit Report required during Renewal
- Invoice International Clients
- Open International Corporate Bank Account
- 100% Foreign Ownership and transfer of Profits
- No Public Register of Shareholders and Directors
- Easy Company setup - 3 Working Days
- Tax-free Company Set up with no Capital requirements
How to register an Offshore Company in UAE?
To start an Offshore Company in UAE following are the steps involved in the process.
- 1. Identify & Assign a Registered Agent - Identifying the right Registered Agent for a particular Offshore jurisdiction is the most important step. The experience and knowledge of the market are the factors for the selection of an agent.
- 2. Fix a Company Name - Choose a trading name for your offshore company. Three names must be chosen for the company out of which one will be finalized by the offshore authorities.
- 3. Choose the right Business Activity - The right business activity for the business must be selected. It is a vital step for the continued business operations in the future.
- 4. Shareholders, Director and Secretary - A minimum of one shareholder and one secretary is required. It can be an individual or a corporate entity.
- 5. Choose the Capital Investment - There is no minimum limit for capital investment in the offshore business. Among the shareholders, the capital can be divided into any number of shares.
- 6. Documentation and Legal Attestation - The requirement documents have to be attested by the UAE embassy in the home country. Also, it has to be attested by the MOFA in UAE.
- 7. Application Form Submission - Submit the required documents along with the application form to the offshore authority. Pay the required fees, and obtain the incorporation certificate.
- 8. Bank Account Opening - Once the company documents are received, proceed for the bank account opening.
Aurion with its extensive team of legal experts and having 12 years of experience with offshore jurisdiction. Our team understands the specific client’s needs and guide them to the right direction.
How to open an Offshore Bank Account in Dubai?
Bank Account opening for Offshore Companies in UAE is a vital requirement. There are some stringent KYC norms for the UAE banks to open a corporate bank account for Offshore companies.
Bank Accounting Opening for Offshore Company highly depends on the business profile, annual turnover, and fund flows of the Offshore Company. The UAE Banks will have thorough compliance checks on the Offshore Company and review the supporting documents to open the account.
Offshore Bank Account in the UAE is a slightly longer process due to the strict compliance checks and approvals. It may take almost a month to open the bank account in certain cases.
AURION can support in bank account opening of companies in the UAE Commercial banks or private banks.
Documents Required for Offshore Company Formation in UAE
Documents Required – For an Individual Shareholder
- Passport copy of all the Shareholders
- Proof of Residence - Utility Bill
- Bank Reference Letter
- Business Profile of the Shareholders
- Suggested Name of the Offshore Company
- Suggested Activities of the Offshore Company
Documents Required – For Corporate Applicant
- Certificate of registration of the company attested by UAE Embassy/Consulate in the home country
- Certificate of Good Standing of the Company attested
- Memorandum and Articles of Association of the company
- Bank Reference Letter
- Board resolution stating the establishment of Offshore Company, appointment of Directors and Registered Agent as the company’s Legal Representative
Upon submission of all required documents and payments of fees, the Certificate of Incorporation will be issued by the offshore jurisdiction.
Restrictions on certain Business Activities for Offshore Company Registration in UAE?
The Offshore Company Registration in the UAE is restricted to a few business activities due to governance issues. The Offshore Jurisdictions of UAE, the RAKICC, Ajman & JAFZA have regulations in place for a set of specific business activities.
Offshore Companies are outside the scope of the legal system in the UAE. However, Certain activities like banking, insurance, financial services, and commercial operations within the UAE are restricted to an Offshore company.
However, Offshore Business jurisdictions are allowed to conduct global trade & services for a wide range of business activities. For example, engineering equipment to shipbuilding.
The Offshore registered companies can own or rent real estate properties in the designed areas of the UAE. Also, Offshore Companies are eligible for opening a bank account in UAE. However, Offshore Company is not eligible for applying for any shareholder or employee visas.
How Aurion will guide you with Offshore Company Formation in UAE?
An Offshore Company Formation Specialist like Aurion will guide you all the phases of the Offshore Company Formation process in UAE.
An Offshore Registered Agent in UAE is entitled to assist clients in many ways. It includes with all documentation, form submissions, obtaining clearances and liaise with government authorities. Team also ensures the company is registered the right way and successfully.
Our Experts help Offshore Companies with:
- Preparation of Registration Forms
- Filing with the Registrar of Companies
- Obtaining Incorporation Certificate
- Opening Multi Currency Bank Account
- Drafting Memorandum and Articles of Association
- Company Registration Renewal
- Any additional Business Support & Advisory Services
Connect with our Offshore Company Registration Experts to know more about Offshore Company setup today itself!
FAQs - Offshore Company Formation in UAE
How long will it take to register a UAE Offshore Company?
Offshore Company Formation in UAE takes less than 4 Working Days if all documents are in place. Offshore Company Registration is a straightforward process and the investors need not be physically present while registering the company.
Offshore Company Registration is started by the Registered Agent of the respective Offshore Jurisdiction. All the documents signed by the investor must be attested by the concerned authorities. These attested documents are to be submitted to the offshore jurisdictions.
Is the Shareholder required to visit the UAE to register a UAE Offshore Company?
There no requirement for the Shareholder to visit UAE for Offshore Company Registration. It can be done via a Registered Agent.
For opening a Bank Account, the Investor or the Owner has to come down and complete the KYC requirements. Completing the KYC Norms will lead to the faster opening of the bank account for the Offshore investor. However, the compliance process for Offshore Companies is very stringent in UAE. It is to avoid any irregular trading activities, fund flows, or transactions while operating in the UAE Offshore Jurisdiction.
Can an Offshore Company apply for a residence visa in UAE?
No, an Offshore Company is not eligible for applying for a residence visa. Offshore Companies are treated outside of UAE’s Legal Governance. The Offshore Companies are out of the scope of UAE Civil laws, Customs Regulations, VAT, etc.
Offshore Company is registered within UAE’s Offshore & Free Zone Jurisdictions. However, It is not seen as an entity belonging to UAE. The Registered Agent will be acting as the Communication center for all Offshore Companies registered by them in UAE.
Can an Offshore Company lease office space in UAE?
No, an Offshore Company is not eligible for leasing out a physical office space. The address of the Registered Agent would be the address of the Offshore Company.
Offshore Companies Registered in RAKICC & JAFZA are eligible to purchase freehold property in selected locations. Offshore companies are eligible for only buying residential property.
Can Offshore Companies apply for a Corporate Bank Account in UAE?
Yes, Offshore Companies can apply for a Corporate Bank Account in UAE. However, compliance is very strict and would take longer to open an account due to the KYC norms and bank policies.
If the Company & investor Profile strong, there is a higher chance of easy bank account opening.
How to Change your Offshore Agent?
You can opt for a Change of Agent in case of any displeasure with your existing Agent. Having an experienced business agent is vital for your continued business operations. The Agent will assist in documentation, clearances, renewals, visa processing or any business setup related services.
Hence, as you find an expert Business Consultant you can opt for a Change of Agent. An expert offshore agent will manage your company’s business setup allied services in the respective offshore jurisdictions.
Aurion is one of the best Offshore Company Registration Agents in the UAE and provides investors with the cheapest Offshore Company Registration Package in the UAE.
The Expert Team will handle the end-to-end Offshore Company Registration Process and ensure the Investor receives the Offshore Company Incorporation Certificate and the supporting documents on time and at the lowest cost.
Required Documents for changing offshore Agent
- NOC from the Old Agent
- Resolution and Amendments for change of agent and Address
- 2 Sets of Memorandum of Association (MOA)
- Client’s KYC Form (Know Your Customer)
- Passport copy
- Bank Reference
- Utility bill
- Business Profile of the Director/Owner
The cost of Changing the Offshore Agent varies across the business jurisdiction in UAE. The process of submitting the application and other supporting documents is almost similar across the Offshore jurisdictions in the UAE. AURION will guide the investor in preparing the new contract (board resolution stating the change to a new agent). Also, the team will help in obtaining the company documents after the change of agent in RAKICC.
Being the Registered Agent of Ajman Offshore and RAKICC, AURION will apply for the ‘Change of Offshore Agent’ on your behalf. Our Team will get all the approvals in place at the fastest possible time.
What is the Cost of Changing the Offshore Agent?
The cost of changing Offshore Agent in UAE is determined by the respective jurisdiction where the company is registered. In RAKICC cost of changing Offshore Agent is AED 1,250 and for Ajman Offshore fee is AED 500. Often, for the investors, there will be a stage where they would want to change the Offshore Registered Agent. The reasons could be lack of communication, agent absconding, and so on.
Offshore agent is responsible for the smooth functioning of the investor's administrative activities in the UAE Offshore Jurisdictions. However, in case of disagreement, the investor has a provision for Changing their Offshore Agent by paying a fee. The investors can choose a new agent who they feel is trusted and genuine. They can request the change of agent by submitting the application form and fee to the respective offshore jurisdiction.
Talk to our expert team to know more about the latest cost for the Change of Offshore agents in the UAE.
