• BY VR1 Global

OFFSHORE COMPANY FORMATION IN DUBAI, UAE

Operating a business outside of one’s home country is referred to as having an offshore corporation. The phrase, which derives from the financial term “offshore,” refers to an investment or business conducted outside of the place of domicile.

Offshore businesses in Dubai are distinct from free zone businesses. Due to the places they have chosen to conduct their businesses, they both perform different functions and are subject to separate laws.

Creating an offshore company gives no tax or low tax benefits, making it a more common business model in the UAE.

For businesses focused on business management, wealth management, and other international investments, this type of business structure works best.

This post will discuss how to start your own offshore business in Dubai.

How to start your Business in UAE Offshore location

You have to first choose a location before starting your own offshore business in the UAE. There are 2 significant jurisdictions in the UAE that provide offshore company formation services.

1. Ras Al Khaimah (RAK) and

2. Jebel Ali Freezone Authority (JAFZA)

Both locations include the advantages of 100% ownership as well as tax exemption.

These offshore businesses all share the ability to open multiple currency bank accounts in the UAE, but they are not allowed to conduct business or own real estate in UAE.

The key differentiator between a Freezone company and an offshore company is that the Freezone Companies are not allowed to conduct business outside the Freezone while an Offshore company is restricted to trade within the country

Both of these jurisdictions are required to offer their offshore company services through a representative or consultant like VR1 Global LLC.

Jafza & RAK Offshore Company formation

JAFZA Offshore Company Formation

JAFZA was created in 1985 in the Industrial area surrounded by Jebel Ali Port. This location, which is primarily surrounded by the busiest ports in the world, is accessible to businesses based in the nearby free zones.

Corporate tax, individual income tax, and import or export tariffs are all exempt in this area. Additionally, there are no currency limits.

Features of JAFZA Offshore Company

• You are allowed to begin your business with just one shareholder, and corporate shareholders are also allowed.
• You require two directors.
• Your business needs a secretary (even the director can act as Secretary)
• No minimum stake requirement, but must employ a professional auditor to review the financial reports
• Your business must maintain accounting records for a minimum of ten years.
• can maintain a multi-currency bank account in the United Arab Emirates to conduct regular overseas transactions.
• The shareholders’ and directors’ names are not required to be listed on a public registry.
• can own shares in firms based in the UAE.
• Dubai property ownership is possible but requires developer and free zone approval.

RAK Offshore Company Formation

Just one hour from Dubai, Ras Al Khaimah is one of the UAE’s Emirates with the greatest growth.

This location is recognized as one of the top Business Competitive Locations and is largely renewed for its Industrialization.

Features of RAK Offshore Company

• You can establish your business with just one shareholder, and corporate shareholders are acceptable.
• At least one director is required.
• A secretary is a must for your business (even the director can act as Secretary)
• There is no requirement for a minimum share amount.
• Quick Business Incorporation Requires Appointing a Professional Auditor to Examine the Reports & Accounts
• Your business must maintain accounting records for at least seven years.
• can maintain a multi-currency bank account in the UAE to conduct regular overseas transactions.
• The shareholders’ and directors’ names do not have to be listed on a public registry.
• able to own shares of firms based in the UAE

A step-by-step guide to starting an Offshore company in Dubai

Step 1 – Choose a Company name and send it for approval

Your company’s desired name should first be registered with the Registrar. There are some rules to abide by while selecting the ideal name for your business. Words like insurance, society, fund, cooperative, chamber of commerce, any name of the United Arab Emirates, country name, or trademark name should be avoided.

Step 2 – Submit the application for Business setup with any one of the locations

With anyone of the locations (JAFZA or RAK) you need to fill up the application form by submitting documents that include:

• Identity proofs
• Address Proofs
• Curriculum vitae
• Business plan
• Photocopies

Step 3 – Approvals from Authorities

After submitting the establishment application form, you must now submit the remaining shareholder and director paperwork for approval to the relevant authorities.

Step 4 – Submitting MOA & AOA

You must have the English-language draft of the Memorandum of Association and Articles of Association prepared after receiving approval from the relevant authorities. The authorities will review these once more and be updated on any changes.

Once everything has been cleared, you can launch your offshore business in the UAE.

Step 5 – Open an Offshore Bank account

Since the majority of transactions in businesses like these take place through authorized bank accounts, this is extremely important.

Benefits of an Offshore company in Dubai

• No taxes of any kind
• free of customs duties
• A multi-currency bank account is allowed
• Without a local sponsor, a business can be entirely owned
• Major Countries acknowledge the value of corporate documentation made in UAE Offshore
• The company must be registered with just 1 shareholder and 1 director.
• Capital for businesses can be in any currency.
• No need to make a deposit into a bank account
• Shareholders’ information remains confidential
• Relatively easy and inexpensive

Documents required to start an Offshore company in Dubai

Here is the detailed list of Doucmned required to start the process:

These documents have to be submitted from all the Shareholders & Directors

• Certified Passport Copy from a lawyer or an Accountant
• 2 Proofs for Address 
• Bank or Professional Reference Letter or 6 months Bank statement stamped by Bank
• Curriculum Vitae – Summary of the Professional History
• 3 Proposed Trade Names
• Business Activity
• Board Resolution
• Memorandum of Association & Articles of Association
• Parent company Certificate mentioning the name of the shareholder or directors with attestation
• Hierarchy of beneficiaries

The typical time for establishing an offshore corporation in JAFZA or RAK is fewer than 14 working days.

FAQs about Offshore Company formation in Dubai

Q1: Can I apply for Resident Visa in Dubai with Offshore Company License?

No, you cannot apply for a Resident Visa in Dubai as they are only issued by Freezone & Onshore companies.

Q2: What are the Locations for starting an offshore company in UAE

Currently, there are 3 locations. RAK (Ras Al kahimah), Ajman Freezone, JAFZA (Jebel Ali Freezone Zone)

Q3: How much does it cost to open an Offshore Company in UAE?

There is no fixed amount to give for estimating the cost. It depends on the number of shareholders, visas & other significant aspects. However, it starts from AED 12500

Q4: Can I open a Multi-currency bank for Offshore business?

Yes, you can open a multi-currency bank account for your Offshore business. The number of currencies to add is solely your choice and the bank can permit all types of currencies for you if requested. You need to check with banks for more details.

Q5: Do I need to have a Trade License to start my Offshore Business?

Offshore Business does not provide any Trade license. But it provides you Certificate of Incorporation after approving your Business application & documents.

Need help with UAE Offshore Company Formation?

If you have more queries or doubts regarding the Offshore company formation and need more guidance in setting up your Offshore Business in Dubai, UAE  then makes sure to connect with us today.

VR1 Global Business setup Consultancy is a bundle formations expert who can walk you through the process of starting your own dream company in UAE without worrying about the next approvals and processes.

Connect with us on Whatsapp at +971508045640 or email us at info@vr1global.com