An Offshore Company in Dubai is a company registered outside the UAE mainland, typically within a free zone, with the primary goal of business operation outside the UAE. These companies do not operate their business activities within the UAE. Offshore businesses in Dubai are typically used for asset protection, international trade, and holding investments. These businesses can benefit from tax exemptions and have full foreign ownership, but cannot conduct business directly within the UAE domestic market or have physical offices within the country.
Setting up an Offshore business in Dubai can offer several advantages, such as:
- 100% Foreign Ownership: As an owner, you can retain complete control of the business.
- Tax Benefits: Offshore companies enjoy zero income tax and no capital gains tax.
- Privacy: Ownership details are generally not publicly disclosed, offering a higher degree of confidentiality.
- Asset Protection: Offshore structures can help safeguard assets from international risks and liabilities.
- Ease of Operation: Offshore companies are relatively easy to set up with fewer compliance requirements compared to mainland businesses.
Setting up an Offshore business in Dubai involves a few simple steps:
- Choose the Jurisdiction: You can choose from several offshore jurisdictions in Dubai, like Jebel Ali Free Zone (JAFZA), Ras Al Khaimah (RAK), and >Ajman Offshore.</a Each has its own set of benefits, so pick the one that suits your business needs.
- Prepare the Documents: You’ll need to provide documents like your passport copy, proof of address, and details of the business owners.
- Select a Company Name: Choose a unique name for your business that complies with offshore regulations.
- Register with the Relevant Authority: Submit your documents to the offshore authority (like RAK or JAFZA) for approval.
- Open a Bank Account: Once your company is registered, you can open an offshore bank account.
There are several reasons why an Offshore business in Dubai is an attractive option:
- No Taxes: Offshore companies are exempt from income, capital gains, and corporate taxes.
- No Customs Duty: You won’t be charged customs duties on goods imported or exported.
- 100% Foreign Ownership: There’s no need for a local sponsor; you retain full control of your business.
- Asset Protection: Offshore companies offer a strong level of asset protection from creditors or legal issues.
- Confidentiality: Ownership details are not publicly available, ensuring privacy.
No, an Offshore company in Dubai cannot directly engage in business within the UAE domestic market. Offshore companies are restricted to international business activities. However, you can use your offshore company to manage investments, hold assets, and trade internationally.
Offshore companies in Dubai are generally used for:
- Holding companies: Managing and holding shares in other companies or assets.
- International trading: Facilitating business activities outside the UAE.
- Investment companies: Managing investments in various assets or real estate.
- Intellectual property holding: Managing trademarks, patents, and other intellectual assets.
The costs for setting up an Offshore business in Dubai vary depending on the jurisdiction and the services you choose. On average, the setup cost can range from AED 10,000 to AED 20,000 or more, which generally includes:
- Registration fees
- License fees
- Office space (if required)
- Bank account setup
In most cases, you do not need a physical office for an Offshore company in Dubai. Offshore companies can be managed without having a physical presence in the UAE. However, you may need a registered address in the offshore jurisdiction, which is provided by the registration authority. Some jurisdictions offer the option to use a virtual office or a registered agent as part of the package.
Offshore companies are generally not permitted to hire employees in the UAE, as they are limited to international business activities. However, you can hire employees outside the UAE to operate the business globally. If you wish to hire employees within the UAE, you may need to consider setting up a mainland or free zone company instead.
Yes, you can open a corporate bank account for your Offshore company in Dubai. Once your company is registered, you can approach one of Dubai’s local or international banks to open an account. Banks may require documents such as:
- Trade license
- Company registration documents
- Passport copies of the directors and shareholders
- Proof of address
Setting up an Offshore company in Dubai is a relatively quick process. On average, it takes between 1 to 2 weeks, provided all necessary documents are in order. The timeline may vary slightly depending on the jurisdiction you choose and the completeness of your application.
One of the main attractions of setting up an Offshore company in Dubai is the tax advantages. Offshore companies enjoy:
- No corporate tax on income or profits.
- No capital gains tax.
- No import/export duties for international trading.
Yes, it is possible to transfer an existing company to Dubai’s offshore jurisdiction. This process involves registering your company in one of the UAE’s offshore jurisdictions, like Ras Al Khaimah (RAK) or Jebel Ali Free Zone (JAFZA), and transferring your assets or shares to the new entity. The procedure may vary depending on the type of business and its location.
To set up an Offshore company in Dubai, you will typically need to provide:
- Passport copies of the shareholders and directors
- Proof of address for shareholders and directors
- Business plan or description of business activities
- Reference letters (from your bank or business contacts)
- Shareholder details and ownership structure
Offshore companies in Dubai must comply with local regulations set by the respective offshore authority (like RAK Offshore or JAFZA Offshore). While these companies have fewer compliance requirements compared to mainland businesses, they must adhere to regulations related to company formation, financial reporting (if applicable), and maintaining proper records of business activities. Offshore companies are also subject to the laws of the jurisdiction in which they are registered.