What does an Offshore company means?
An offshore company or non-resident company which established in a foreign country, where it does not operate its business and where the directors are not residents. The offshore company can be owned by individuals or corporations and is a business entity that does not carry out any substantial business activity in its country of establishment.
UAE offshore company in Dubaican exercise practically any business whereby such business must be outside of the country. The UAE offshore firm cannot do any business in the United Arab Emirates except holding a bank account and have the local registered agent. This legal entity cannot import any goods into the UAE market; it cannot lease office or other commercial premises or apply for residency visas for its shareholders and directors
This type of legal entity is different from Freezone companies in the UAE and has much lower price then them.
Benefits of UAE offshore company
- The offshore company is exempted from all corporate and income taxes
- No Audit Report required
- Corporation of a Bank Account in UAE and multi-currency account are allowed
- Full repatriation of the profits and capital are allowed
- 100% Foreign Ownership
- low establishement fees
- Benefits of Double Taxation Avoidance Agreement
- Clear and stable corporation law
- No Public Register of Shareholders and Directors
- Only minimum capital is required to set up an offshore company:
- Minimum of 1 Director / Shareholder
- The company can own real estate properties in approved areas by the Authority
How to use the Offshore company in the UAE?
An Offshore Company is one of the highly popular solutions for making various international business with free taxation benefit and high confidentiality level, some offshore company activities are below:
International Trading & global transactions
Easily facilitate international trade and carry out global transactions without any hassle through an offshore company. The offshore company would take orders directly from the customer, but have the goods delivered directly to that customer from the manufacturer or place of purchase
An offshore company can be used to purchase property in certain areas in the UAE as specified by the Offshore Jurisdiction and assets (Yachts, Private Aircraft,...) the benefit is not only avoiding the taxation but also the complicated inheritance procedures*.
All sorts of copyrights, trademarks and patents
Any kind of intellectual property right (a copyright or trade mark) may be registered in the name of an offshore company and the company can also buy or sell this type of rights.
Through a UAE offshore company you can carry on a global consulting, management services or counseling business and other...with a remotely work from anywhere in the world and gain tax benefits.
Individual stakeholders can invest in different projects using the Offshore Company name as a corporate Investor without disclosing the shareholder details.
An offshore company can act as a holding company where can manage all their businesses under one holding structure.
Benefits of an Offshore Company
Apart the general advantages of being the tax-free company and its establishment low price this firm differs from the available alternatives in such countries as Singapore, Belize,... and there are different number of reasons for this"
- UAE offers great choices of banks which is highly valuable and important point to be considered.
- UAE economy has great future development prospective because the county keeps its development which safeguards banking stability and steady and strong legislation along with the great international country image
- The incorporation process is very fast, the costs are cheap and the further administration and renewals are done without any difficulties as all these points are completed by the company’s registered agent
Areas for offshore jurisdictions
The registration of an offshore company is possible in the following three jurisdictions : JAFZA, RAKICC and Ajman Offshore.
- JAFZA Offshore
The offshore company formation is regulated by the Jebel Ali Free Zone Authority (JAFZA) Foreign investors seeking offshore company formation in Dubai choose the Jebel Ali Free Zone to conduct business outside the UAE or purchase freehold real estate properties in Dubai.
A minimum of one shareholder is required to open a company in JAFZA. Corporate shareholders are permitted and the shareholders will decide the capital structure of the Company. No fiscal minimum capital requirements have been stipulated, but bearer shares are not permitted. Different classes of shares are not permitted and shares have to be fully paid when allotted.
- RAKICC Offshore
The offshore company setup was launched in Ras Al Khaimah in 2007 by the RAK Investment Authority.
The RAK offshore company formation is comparatively more flexible and cost-effective, requires a minimum of one shareholder and corporate shareholders are allowed. Shareholders will decide the capital structure of the Company. Whilst there is no minimum share capital requirements but, the value of each share must be AED 1,000 (Aprox JPY 28662,422). Bearer shares are not permitted. Different classes of shares are permitted and shares have to be fully paid when allotted.
- AJMAN Offshore
The Ajman Free Zone Authority (AFZA) launched the offshore company formation in 2014 aiming at both international and local investors who are planning to purchase freehold real estate properties in Ajman. The investors seeking to conduct businesses outside the UAE can also opt for Ajman offshore company formation with the benefits of asset protection, zero tax structure, and business confidentiality. Ajman is the smallest emirate in the UAE and the offshore company formation here can be done at lower costs.
Entrepreneurs seeking to form a company in Ajman offshore are required to have at least one shareholder. The corporate shareholding is permitted. Shareholders will decide the capital structure of the Company. The Bearer shares are not permitted. Different classes of shares are permitted and shares have to be fully paid when allotted.
All UAE offshore company must have its registered agent. Such agents are specially licensed companies in UAE and registration, and administration of all offshore companies in the UAE is done only over such agents. Such agents act as the authorized representatives of the companies’ registry.