Offshore Company Formation in Dubai

An offshore company, also known as a Dubai Offshore International company, is a special type of business that operates outside its home country. 

These companies are usually set up in specific areas in Dubai or other parts of the UAE called free zones. They offer many benefits like:

Tax Savings: Significant tax reduction on money earned from outside the UAE.
Privacy and Confidentiality: Shareholders and directors don't need to share their personal details publicly, ensuring privacy.
Global Expansion Opportunity: Easier access to international markets for growing business beyond local borders.
Stable Legal System: Access to a reliable and business-friendly legal system.
Flexible Regulations: The rules are adaptable and not too strict, providing more operational freedom.
Global Funding Access: It's easier to get funds from different parts of the world.
Asset Protection: Helps safeguard valuable assets like ideas (Intellectual Property) from financial risks.
Financial Privacy: Enhanced privacy regarding financial matters and transactions.
Banking Flexibility: Permission to open bank accounts in various currencies, facilitating international transactions and protecting funds.

It's essential to understand that these companies can't do business inside the UAE; instead, they're often used for trading, owning property, or managing investments around the world.

Picking the United Arab Emirates, especially Dubai, to start an offshore company is a popular choice for people who want to save on taxes and have more privacy. In Dubai, you can create this type of company as a limited liability company (LLC), a limited company, or a limited partnership. 

Let's now look at the steps to make your offshore company in Dubai a reality.

How to ​Set Up an Offshore Company in Dubai 

In the UAE, you have two main places to start an Offshore Company: Ras Al Khaimah (RAK) and Jebel Ali Free Zone (JAFZA). They both don't ask for taxes and allow full ownership if you're from another country. The UAE has agreements with 40+ countries to avoid double taxing.

These companies can have bank accounts in different currencies and do business all around the world. However, they can't do business with people living in the UAE or have offices there.

RAK is cheaper, but only JAFZA can own property in Dubai.

Also, there's a third option, Ajman Offshore. Ajman and RAK offshore companies are good for international trading outside of the UAE, holding companies, and protecting assets. Ajman is easier and quicker to set up, but RAK is often preferred as it's more well-known and lets you have an office in Dubai too.

In both RAK and JAFZA, you need an approved agent like YABS Public Relations Management LLC according to local laws.

To set up an offshore company in Dubai, here are the steps simplified:

Choose a Suitable Offshore Jurisdiction: ​Select a fitting offshore location that fits your. For a successful setup of a UAE offshore company, it's vital to involve a local offshore representative registered under one of the three main authorities.

Pick a Corporate Name & Apply: Decide on a name for your offshore company and register it with the local authorities. Your company name should include words like "Limited" or "Ltd" to show it's an official offshore entity.

Seek Professional Assistance: Get help from experts like YABS who know how to set up companies offshore. They can guide you through the process and manage paperwork.

Select Your Business Activity: Decide what kind of business you want to do and specify it during the registration process.

Choose a Legal Structure: Decide on the legal setup for your company. Options include a limited liability company (LLC), a free zone company, or a branch office of a foreign company.

Obtain Approvals and Licenses: Depending on the type of business, you may need approvals and licenses from government agencies.

Complete Company Registration: Fill out a registration form and submit necessary documents like articles of association, passport copies, and proof of address to the Dubai Department of Economic Development.

Set Up a Corporate Bank Account: Once registered, open a corporate bank account in Dubai by providing the required documents like your company registration certificate, articles of association, and proof of address.

Documents Needed for Establishing Your Offshore Company

1. Notarized Memorandum of Association (MOA)
2. Certified Passport Copy by a Lawyer, Accountant, or Sovereign Employee
3. Emirates ID Cards
4. Business Plan
5. Recent Bank Statements Copy (last 6 months)
6. Utility Bill (as Proof of Address)
7. Three Potential Company Names
8. Business Activity Details
9. Two Proof of Address Documents
10. Bank or Professional Reference Letter
11. Curriculum Vitae (Summary of Professional History)

UAE Offshore Jurisdictions

JAFZA Offshore Company

Jebel Ali Free Zone (JAFZA) is a significant trade center located in Dubai, close to Abu Dhabi. It was the first free zone established in the UAE and provides world-class infrastructure and services for businesses to expand their trade, both locally and internationally.

Key features of a JAFZA Offshore Company:

Shareholders: Need at least one shareholder, can be a company. All company documents of international corporate shareholders must be verified.
Share Capital: You don't need a specific amount of money to start.
Directors: Must have a minimum of two directors. Corporate directors are not allowed, and director details are not public.
Secretary: Every company needs a secretary. A company director can also act as a secretary.
Higher Setup Cost: Incorporating an offshore company in JAFZA is more expensive compared to Ajman or Ras Al Khaimah.
Physical Presence Requirement: Shareholders must either reside in or visit the UAE to complete the offshore company incorporation process.
Audit Report: It's necessary to submit an audit report of your company's finances and operations to the JAFZA authorities during the incorporation process.
Yearly Reporting: Every company has to keep financial records for 10 years. Also, they need to hire a specialized person (approved by authorities) to check and report on the accounts.

RAK Offshore Company Formation

In the thriving Emirates of the UAE, Ras Al Khaimah (RAK) stands out with impressive growth. Both RAK and Ajman offer similar features, making them attractive options for international businesses looking to start an offshore company.

Key features of a ​RAK International Corporate Center (RAK ICC) Offshore Company:

Shareholders: Need at least one shareholder; corporate shareholders allowed; international corporate shareholders need verified company documents.
No Local Shareholding Requirement: You don't need local shareholders.
Directors: Need at least one director; corporate directors allowed; director details not public.
Secretary: Every company must have a secretary; a company director can also be the secretary.
Share Capital: No specific minimum amount of money needed to start.
Investment Flexibility: They can purchase shares of local UAE businesses.
Remote Registration: With the help of a UAE national, you can register your RAK offshore company without being physically present in the UAE.
Annual Reporting: Keep financial records for 7 years from preparation date; no requirement for a yearly audit report.
Quick Setup: RAK offshore companies can be incorporated within just 7 days of application.
Minimal Personnel Requirement: Like Ajman, only one director and one shareholder are needed for offshore incorporation.
Real Estate Investment Opportunity: RAK offshore companies can invest in real estate within the UAE without needing a business license.
Banking Convenience: These companies can easily open and manage multi-currency bank accounts in the UAE for smooth international transactions.

Ajman Offshore Company Formation

Ajman Free Zone offers great and affordable services to set up your offshore business. Here are some reasons why you should consider Ajman Free Zone for your offshore business:

Affordable Setup: Starting a company in Ajman is not expensive and doesn't require a lot of money for day-to-day operations.
Minimum Requirement: You only need one director and one owner to start your offshore business, and interestingly, one person can handle both roles.
Easy Changes: If you want to change your business structure, like adding a new corporate owner, it's simple and can be done in just seven days.

Establish Your Offshore Business Today in the Rapidly Growing Jurisdictions in the World

Starting a business in the United Arab Emirates is a gateway to numerous opportunities for global entrepreneurs and investors. We are dedicated to helping you establish your UAE Offshore Company, utilizing the expertise of our seasoned team.

Our services encompass the formation of UAE offshore companies, particularly in the vibrant city of Dubai. Our proficient business advisors possess an in-depth understanding of offshore incorporation procedures. They can seamlessly guide you through the process, ensuring an error-free experience. Leveraging their industry experience, they comprehend business needs and offer customized solutions.

If you're enthusiastic about launching your offshore company in the UAE, do not hesitate to contact us. We are eager to provide our assistance!

Initiate Your Business with YABS

Starting Your Offshore Company: Establishing an offshore company in Dubai is achievable by following the outlined steps and gathering the required documents.
Professional Guidance: Seeking assistance from a qualified company formation specialist is highly recommended for a smooth setup process.
Ensuring Business Success: With the right expertise and guidance, your offshore business can thrive and achieve success.
Obtain More Information: For comprehensive details about setting up a business in Dubai, whether offshore or on the mainland, reach out to us today.
Book a Free Consultation: Schedule a free consultation with us and let us guide you in commencing your business venture in Dubai!