Foreign investors choose to set up an offshore company in the UAE to avail themselves many benefits, such as international trading, investment protection, tax planning, and many others. The main aim of investors, entrepreneurs, and big corporate entities setting up an offshore company is to bolster their wealth management and asset protection.

Offshore company setup is the preferred form of business set up for investors seeking tax benefits and investors who want to conduct their business activities outside the UAE.

Investors opting for offshore company formation have three options: Ajman offshore, JAFZA offshore, and RAK ICC. As an investor, you can avail of the benefits of each jurisdiction. However, it is better to seek advice from business setup consultants in the UAE to analyze each of them before commencing an offshore company.

• JAFZA

The Jebel Ali Free zone is the free zone in Dubai, which provides offshore company formation. The offshore company set up in Dubai is regulated by the Jebel Ali Free Zone Authority (JAFZA).

You should choose the Jebel Ali Free Zone if you want to conduct business outside the UAE or buy freehold real estate properties in Dubai. In order to set up a company in JAFZA, you require a minimum of one shareholder. The shareholders will decide the capital structure of the organization, and corporate shareholders are allowed.

• Ras al Khaimah

The Ras al Khaimah (RAK) offshore company formation is comparatively more flexible and cost-effective. The offshore company set up in the RAK requires a minimum of one shareholder, and corporate shareholders are permitted. A shareholder will determine the capital structure of the company.

• Ajman

As an investor seeking to conduct business outside the UAE, you can also choose Ajman offshore company formation. You will get the benefits of asset protection, zero tax structure, and business confidentiality. Ajman is the smallest Emirate in the UAE, and the offshore business setup can be cost-effective.

Let’s take a look at the reasons why foreign investors choose offshore company formation in the UAE.

• 100% Foreign Ownership

As an investor, you can have 100% ownership by setting up an offshore company. This is in contrast to the mainland company formation, where the UAE national is generally required to hold at least 51% of the share.

• Corporate Taxes Exemption

There is no corporate tax at the Emirate of Federal level. Currently, oil and foreign banks are subjected to corporate tax in the UAE.

• Low Operational Costs

The offshore company formation does not require leasing a building. You don’t have to worry about employing staff or the provision of guarantees. You can operate the business through legal firms and accountants approved by the registrar.

• Corporate Bank Account

When choosing an offshore company set up in Dubai, Ajman, or RAK, you need to open a corporate bank account. Through this corporate bank account, you will be able to deal with multiple currencies. You can also repatriate 100% of the profit to the countries of your preference.

• Confidentiality

If you want your business activities to be confidential, it is best to choose the offshore company formation. The details of the director or shareholders are not disclosed in any public domain or online company registry.

The company formation in each of the jurisdictions differs from each other, and you should choose the right jurisdiction that caters to your needs. The process of deciding the right jurisdiction can be hectic and time-consuming, and that is why you need the assistance of an experienced team of business set up consultants. They will guide you through each process of offshore company formation, from registration to company incorporation.