What is an offshore company?

An offshore company is a type of company established outside the geographical borders of the country in which the owner or investor resides. The offshore country is chosen based on a set of factors such as tax facilities, financial secrecy, and simple procedures for establishing and managing a company. Establishing an offshore company is often used for tax mitigation and financial privacy protection purposes.

Offshore companies\\\’ laws and regulations vary from country to country, and can offer different facilities depending on location. Establishing an offshore company is characterized by flexibility and confidentiality in management, which makes it a popular choice among individuals and companies wishing to take advantage of tax facilities and mitigate legal obligations in some cases.

Conditions for establishing an offshore company in Dubai

Establishing an offshore company in Dubai is subject to certain conditions and procedures. Here\\\’s an overview of the main terms:

• Company type: The company must be a suitable type for offshore incorporation, such as a holding company or investment company.
• Number of shareholders: An offshore company in Dubai can be a single or multi-shareholder organization.
• Capital: Offshore incorporation does not require paid-up capital, but you can determine the capital as per the company\\\’s requirements.
• Name and logo: A unique name for the company must be chosen, and there may be some restrictions on the words that can be used.
• Legal Director: A legal director must be appointed for the company, and this can be an individual or a company.
• Certificates and Attestation: Company documents such as commercial registry, legal director’s passport, and registered address must be submitted.
• Company Memorandum of Association: It requires an incorporation document (Memorandum of Association) that defines the company’s structure and objectives.
• Registered Address: A registered address must be provided for the company, and virtual office services can be used.
• Attestations: Some documents may require legalization by the embassy or consulate.
• Administrative services: You can benefit from the services of administrative services offices that provide support to offshore companies.

What benefits does an offshore company in Dubai offer?

An offshore company in Dubai may offer several benefits to individuals and companies. Here are some benefits that may be available:

1. Tax facilities: Dubai and the UAE in general are an accessible place for offshore companies thanks to their low or no income tax system.
2. Financial confidentiality: Offshore companies can benefit from a high level of financial confidentiality and not disclose ownership details or financial reports.
3. Facilitation of procedures: The possibility of managing the company remotely, while keeping the procedures for establishing and managing the company simple and effective.
4. Asset Protection: Offshore companies can provide an environment for asset protection and portfolio diversification.
5. Lack of currency control: In some cases, there is greater freedom in currency trading to suit the company\\\’s needs.
6. International growth potential: Offshore companies can easily expand their business across borders.

What are the documents required to establish an offshore company in Dubai?

The requirements for setting up an offshore company in Dubai change depending on the type of company and the activities it undertakes. However, here is a general list of documents that may be necessary:

• Incorporation application form: Specifies the details of the company, such as its name, type, and proposed activities.
• Copy of the founders’ passport: A copy of the passports of all founders involved in the company must be submitted.
• Founders\\\’ residential address: Proof of founders\\\’ current address must be provided.
• Business Plan: Authorities can ask companies to submit a detailed business plan to them.
• Details of shareholders and directors: Information about the relevant shareholders and directors of the company must be provided.
• Power of Attorney Form: Specifies details regarding the delegates and their powers.
• Company Articles of Incorporation: Specifies the permitted activities and terms of the company’s incorporation.
• Company establishment notice: Issued by the local regulatory authority after completing the procedures.
• Power of attorney (if there is an agent): If there is a person who represents the shareholders or manages the company on their behalf.
• Bank account authorization form: Required if a person is authorized to carry out banking transactions on behalf of the company.

Why should you invest in the UAE? 

The UAE is worth investing in for several reasons, and here are some aspects that make it a unique destination for investors:

• Advanced business environment: The UAE provides an advanced and stable business environment with an effective and transparent legal system, and is committed to encouraging investment and facilitating business procedures.
• Financial and commercial center: Dubai is considered a global financial and commercial center, as it combines advanced infrastructure and a strategic presence.
• Diversity of economic sectors: The UAE economies are diverse between sectors such as oil and gas, tourism, real estate, technology, and manufacturing, which provides diverse investment opportunities.
• Advanced infrastructure: The UAE has benefited from significant investments in advanced infrastructure, including ports, airports, and roads, facilitating transportation and trade operations.
• Political and social stability: The UAE is characterized by political and social stability, which creates a favorable environment for business and increases confidence for investors.
• Facilitating business procedures: The government is working to simplify and accelerate the procedures for establishing companies and providing government services via the Internet.
• Stimulating innovation and technology: It encourages innovation and the adoption of modern technology in various sectors, providing opportunities for startups and technology companies.
• Multicultural workforce: The UAE attracts global talent from different cultures and specializations, which contributes to the diversity of the workforce.
• Global presence: The UAE represents an important hub for global trade and conferences, opening the door to international expansion opportunities.

Licenses to establish an offshore company in Dubai

Establishing an offshore company in Dubai requires compliance with some steps and licenses. Here\\\’s an overview of the steps and licenses involved:

1. Choosing a consulting company: It is preferable to start by cooperating with a local consulting company or a lawyer specialized in establishing offshore companies in Dubai. They will direct you to the correct procedures.
2. Choosing the right type of company: You can choose the type of company that suits your needs, such as a limited liability company (LLC) or a sole proprietorship.
3. Determine the permitted activities: Determine the scope of permitted commercial activities for the offshore company in Dubai.
4. Submit required documents: Local authorities may require certain documents to complete the incorporation process, such as a passport, residence certificate (if applicable), and a personal photo.
5. Registration and licenses: You may need to submit an application to register in the trade registry and obtain the necessary licenses depending on the company’s activity.
6. Opening a bank account: Open a bank account in the company’s name to manage financial operations.
7. Compliance with tax regulations: Ensure compliance with offshore company tax regulations and payment of required fees.
8. Day-to-day management: Ensure compliance with all day-to-day legal and administrative obligations.

5 types of licenses that can be obtained in the Dubai Free Zone 

• Industrial licence: for light industrial activities.
• Logistics license: issued only in the logistics area, to carry out logistics services.
• Trading and general trade license: for import, export, distribution and storage of products specified in the license, and selling products within the UAE market through a local distributor.
• Service License: For services specified in the license within the Dubai South Free Zone and other places in the United Arab Emirates.
• Education License: This type of license is used for educational, social, training, and educational consulting services.

Establishing an offshore company in Dubai

Simple steps to achieve one of your dreams of investing in Dubai and establishing an offshore company. More than ten years of experience in dealing with all types of companies. Whatever type of activity you want to work in in Dubai, we will provide you with everything required to obtain all the necessary approvals and licenses to start. This activity is done without any effort or hassle. Just contact us and get a free consultation with all the necessary details and papers.

Establishing a business in Dubai

When establishing a business in Dubai, one of the most important steps to developing a workable business plan is knowing the initial costs of establishing a company. Dubai\\\’s tax-free advantage is an attractive factor for many entrepreneurs, but it is important to take into consideration the fees required to issue a new business license. The Department of Economic Development\\\’s website offers a useful tool that allows prospective business owners to estimate the fees required to obtain licenses for their businesses.

If you are planning to start a company in one of the free zones in Dubai, you should keep in mind that each free zone has different steps and fees for incorporation. Many free zones also require that the company owner have a minimum amount of capital if he is establishing a company or project in the free zone, as opposed to simply opening a new branch of an existing company. Other costs of conducting business in Dubai or in the free zone include the costs of sponsoring employees and providing them with the necessary visas and papers to allow them to reside in the country.

Among the things that commercial companies must take into account are the future costs of importing goods into the country; Dubai Customs has clear guidelines regarding the types of goods that can be brought in and the costs of importing them. If the company intends to carry out commercial activity in the Gulf Cooperation Council countries only, customs duties will be lower thanks to the laws of the common market of the Gulf Cooperation Council countries, which promote trade cooperation and facilitate its practice between citizens of the Gulf Cooperation Council countries.