Classic offshore companies are global business firms that can only operate within the UAE. Offshore companies established in the UAE will have a good reputation, while the tax climate and audit requirements there are more similar to classic free zones.
Characteristics of an Offshore Company in the UAE
Setting up an offshore company in UAE is an opportunity to have a profitable and completely legal business. In a way, the UAE offshore jurisdictions continue to maintain the reputation of a tax haven inherent in the industry.
- Offshore companies in the Emirates are not subject to taxation on profits and other extortions. And there is no need to file an audit report in any special economic zone (SEZ) (except for Jebel Ali, Dubai).
- This type of business will not enable you to conduct business in the Emirates free economic zone (FEZ) territory is not an exception) or to lease a real office, only a legal address.
- In order to open a firm, it will be necessary to submit a business plan, the drawing up of which, however, is more of a formality. The UAE law is based on Shariah law. Offshore firm owners registered in the EEZ (free economic zone) are less exposed to Shariah law but should not be excluded.
- When it comes to an offshore company formation in UAE, there is a widespread belief that one should relocate the business overseas. This is far from the case, because business owners do not even have to be physically present in foreign countries.
- The only thing to do is to submit documents to the UAE administration where the client intends to register his offshore company.
There are currently three offshore jurisdictions in the UAE which are eligible to establish offshore companies in the United Arab Emirates:
Requirements for Offshore Company Formation in UAE
- A registered agent: The client is required to have a registered agent in any of these jurisdictions: JAFZA Offshore Authority, RAK Offshore Authority, Ajman Offshore Authority in order to set up an offshore company in the UAE. The office of the agent will be the seat of the offshore company.
- Company name: It must reflect the nature of the business and comply with the laws of the country. To indicate the legal status of an offshore company, its name should end with Limited (Ltd) or Incorporated (Inc).
- Initial share capital: Offshore company registrars in the UAE do not demand share capital to be deposited into a bank account. But the company must have sufficient capital to achieve its objectives.
- Necessary documents: It depends on the requirements of the chosen offshore zone and the type of shareholders. All papers must be certified and translated into English.
Typically required documents include:
– Proof of identity of shareholders and directors;
– Proof of address of shareholders and directors;
– CVs of shareholders and directors;
– A well-developed business plan.
- Filing documents for the UAE offshore company formation: After verification of the documents, the client pays the registration fee and agent’s fees.
- Receipt of incorporation papers: The client obtains the documents – certificate of establishment or registration, certificate of shares and association’s statutes.