Why Choose Dubai Offshore for Business Setup?

An offshore company setup in Dubai enables the investors to achieve the following business activities more effectively and safely:

• International Trading: As an offshore company, it is very easy to integrate into the global market and do business with different countries without any restriction on transactions.
• Professional Services: Provide consulting and management services on an international level through a registered international business company. Have tax advantages and manage your work from any country of the globe.
• Own properties in the UAE:  An Offshore Company may be utilized for acquiring an interest in properties in some zones in the UAE as per the Offshore Jurisdiction.
• Copyrights, Trademarks, and Patents: The Offshore Company can register any type of copyright, trademark, or patent.
• Holding Companies:  An Offshore Company can be used as a holding company. Business establishments can be registered under a single holding company by the shareholders.

Business Zones in Dubai Offshore For Company Formation

Jebel Ali Free Zone (JAFZA) Offshore Company

JAFZA Offshore businesses fall under the governing laws of the Jebel Ali Free Zone Authority. These entities permit 100% foreign ownership, do not need physical offices, and are corporate tax exempted. This structure is appropriate when the protection of assets is important, for holding companies, and for companies that engage in international business.

Ras Al Khaimah International Corporate Centre, RAK ICC

RAK ICC provides a competitive offshore company setup in Dubai which is flexible and recognised internationally. These companies guarantee 100% foreign ownership, confidentiality for shareholders, and no corporate and Income tax. They can have UAE or international bank accounts, they can be used for holding assets, protecting intellectual property, and carrying on international businesses along with other services.

Ajman Offshore

Ajman Offshore is a cheap and easy option for offshore company incorporation Dubai. Companies enjoy 100% tax exemption, shareholders’ identity is protected and the company does not need a physical address. This type of offshore company is suitable for the business, which is in search of an inexpensive solution for the management of assets, holding company, or international trading.

Step by Step Guide to Register a Company in Dubai Offshore

The steps to establish a Dubai offshore company are:

1. Choose an Offshore Jurisdiction & Registered Agent – Selecting a registered agent working for a particular Offshore jurisdiction is important because they have complete knowledge of the market and hold high experience.
2. Select Corporate Name – Now, select a trading name of your offshore company. choose any 3 corporate names for the approval of the offshore authorities, one of which will be incorporated into the organization formally. 
3. Choose the Suitable business activity – Choose the right business activity for your company. 
4. Shareholders and Director — At least one shareholder and one secretary are necessary. It can be a person or a company.
5. Select Capital Investment – The amount of capital investment required for offshore business has no lower limit. The capital could be divided into any number of shares among the shareholders.
6. Documentations and Legal attestations – The required documents should be attested at the UAE embassy of the home country. it should also be signed by the MOFA in UAE.
7. Documents requirement – Submit the documents along with an application form to the offshore authority. Pay the registration fees and get the incorporation certificate.
8. Opening of Account – You have to open a bank account immediately after receiving the company documents.r

Documents Needed for Dubai Offshore Company Registration

Documents Required – For an Individual Shareholder

• Photocopy of all the Shareholder’s Passport
• Utility Bills – A utility bill which can also refer to a document of residence such as electricity, water, and/or gas bills.
• Bank Reference Letter
• About the Shareholders of the Business
• Name Suggested for the Offshore Company
• Offshore Company Suggested Activities

Required Document – For Corporate Applicant

• United Arab Emirates embassy/consulate certified certificate of registration of the company in the home country
• Suffice to say the Certificate of Good Standing of the Company was attested
• The memorandum and articles of Association of the company
• Bank Reference Letter
• Board of resolution in regards to the formation of an Offshore Company, Directors and Registered Agent as the Legal Representative of the company

Costs Involved in Offshore Company Formation in Dubai

The cost of offshore company setup in Dubai depends on the selected territory, the necessary services, and additional options such as opening accounts and providing legal assistance. 

• Registration fees: Registration fees are paid annually starting from  AED11000. It depends on the choice of the offshore jurisdiction by the owner of the company and business activity.

• Share capital: It is covered under the registration fee of an offshore company. Some of the firms need the minimum capital to open the business in an offshore jurisdiction. However, some may have conditions for some standard capital amount.

• Registrar office fee: It is also included in the registration fees of the offshore company. It is however necessary to have a physical presence in the offshore business in Dubai. An address is also required for registration of the business. It is an annual expense.

• Bank account opening charges: These charges are also covered in the registration fee. The bank account is mandatory to commercially operate in Dubai. It is one time cost that needs to be paid during the initial process of the business formation.

• Nominee charges: You need to pay nominee charges of AED 15000 annually for establishing offshore companies in Dubai. In the case of the absence of the owner, directors, and shareholders can sign the legal documents. Nominee services bear some cost and have limited rights in the offshore business.

• Agent fees: In any governmental process, the offshore company employs an agent to act as a middleman, and they are paid every year depending on their work.

• Annual cost management fee of offshore company: An annual maintenance fee is made in the offshore jurisdiction. It is fixed in the first year and paid at a fixed rate from the second year.

Advantages of Setting Up a Business in Dubai Offshore

• Confidentiality and Privacy
• 100% Protection and security of the company.
• No necessity for an Audit Report during renewal.
• Invoice International Clients
• International Corporate Banking Facility.
• Subsequently all investments involved 100% Foreign Ownership and transfer of Profits.
• No public register for shareholders and directors
• Easy Company formation process – 72 working hours
• Company Formation Services with No capital and tax exemption

Legal Structures for Dubai Offshore Company Formation

When it comes to offshore company incorporation dubai, you have a choice to select the legal structures that suit your company. It helps you to select the best suited setup and you also get various benefits. For instance, you will get asset protection, tax savings,  Or worldwide trading opportunities.  

Limited Liability Company (LLC) in Dubai Offshore

LLC offshore structure gives you advantage of limited liability, which ensures your personal asset will be separate from the company debts and legal obligations. In addition, the income will get favourable tax treatment.

International Business Companies (IBCs) in Dubai Offshore

An IBC is formed in the UAE, for performing business activities outside UAE. The companies under IBCs are exempted from tax and duties. This can significantly lower the company’s costs of engaging in foreign trade or investment business.

Challenges For Company Formation in Dubai Offshore

The advantages of offshore business setup Dubai cannot be underestimated; however, companies would encounter some problems. Below is an overview of the common obstacles:

• Regulatory and legal compliance policies

Challenge: Offshore business setup in Dubai is bound to follow the regulations of jurisdiction. Failure or ignorance of these rules might result in penalties.

Solution: Hire legal consultants or registered agents who know the local laws and can help you get out of the situation. 

• Bank Account Setup

Challenge: Corporate bank account opening may face challenges due to strict KYC and AML procedures. 

Solution: Prepare complete donuts required for KYC and AML and choose the offshore friendly bank. 

• Business Activities Restriction 

Challenge: There are some activities that are restricted for offshore businesses such as conducting business activities in the UAE or interacting with the UAE based customers. 

Solution: at the planning stage, you must clearly define the international scope of the business to ensure you are not breaking the regulations. 

• No Physical Presence 

Challenges: Companies are not allowed to develop a physical office in the UAE. This can lead to trust issues among customers. 

Solution: You can use the virtual office and maintain a robust online presence to gain customer trust. 

• High Initial Cost

Challenges: Offshore business setup in Dubai are cost effective in the long term but initial setup cost can be hectic. 

Solution: prepare your budget carefully and compare different service providers and choose the best suited. 

• Annual Renewal Requirements 

Challenges: UAE offshore companies should renew the registration and licensing per year which leads to recurring costs and compliance checks. If you miss a deadline, you may face penalties. 

Solution: You can set reminders and hire a registered agent to manage your company renewals on time. 

• Limited UAE market involvement

Challenges: Offshore companies are not allowed to directly operate in the UAE or provide invoice to UAE based customers. 

Solution: You can form a free zone company along with offshore business to operate in the UAE. 

• Reputation issues 

Challenges: Many times offshore companies are perceived as avoiding taxes, which leads to downfall in credibility with global partners and financial institutions. 

Solution: Ensure transparency in operations and ensure you’re following all the regulations for UAE offshore business.

• Complex Documentation 

Challenges:  company owners are required to submit various documents for registration which consumes lots of time. 

Solution: You must hire professional services to ease the documentation without delays. 

• Global Tax Regulations 

Challenges: International tax law changes can lead to affect on offshore entities. 

Solution: You need to stay updated with the changes laws and take help from professional services like BrightVision to ensure compliance.

Why choose BrightVision for Offshore Company Formation in Dubai

BrightVision is an offshore business setup Dubai Specialist, helping you through all the stages of the Offshore Company Formation in UAE.

We will assist you in the process of documentation, application, approvals, and get in touch with the concerned government department. The team also makes sure that the company is registered the right way and effectively.

Our Experts help Offshore Companies with:

• Preparation of the Registration Forms.
• Submitting it to the Registrar of Companies
• Get an Incorporation Certificate
• Opening Multi Currency Bank Account
• Preparing Memorandum and Articles of Association
• Company Registration Renewal
• All other Business Support & Advisory Services if offered

Feel free to reach BrightVision to know more about the Offshore Company setup in Ajman!