01 Feb Things to know while setting up an offshore company in the UAE
An Offshore Company is a legal business entity that is set up with the intention of operating outside its registered jurisdiction and/or the location of its ultimate ownership.
Setting up an offshore company in UAE comes with umpteen benefits such as ease and freedom of business operations, a stable and business-friendly legal system, partial or total tax exemption, 100% ownership, limited liability, and many others. This explains why many foreign entrepreneurs prefer setting up their business in UAE, with the intention to operate their business in the Middle East, Africa, and other regions. If you are planning on setting up an offshore company in UAE, here are the key things to consider.
Choose Your Location – UAE offers 3 locations to set up your offshore company – the Jebel Ali Free Zone (Dubai), Ras Al Khaimah (RAK) and) and Ajman, all of which offers various benefits and a quick and cost-effective setup process. The company setup cost varies in each location, the highest in JAFZA in Dubai. But the location needs to be selected based on the kind of goods you are planning to trade or the connectivity needed for global operations and other factors.
Create a Legal Name – It goes without saying that your business would need a legal name before you can move forward with the registration process. Make sure to select a trading name that is unique, represents your corporate identity, and is in line with the restrictions and rules prevailing in the country. The usage of words such as banking, insurance, reinsurance, etc., is not permitted for offshore company names.
Submit Your Application – The following documents are needed to apply for offshore company registration: the identity of shareholders, address of the shareholders, business plan, financial documents, bank statements, and others. This again varies based on the total number of shareholders in the offshore company.
Open an Offshore Bank Account – Once you receive the approvals from the concerned authorities, which ideally would take about 14 days, it’s time for you to open a foreign bank account with a bank in UAE. This helps you carry out international transactions at ease and manage your capital and finances as per the regulatory compliances.
As a leading company offering Offshore Company Setup Services in UAE, our team of professionals and lawyers help you get through the nitty-gritties involved in the registration of your company in the UAE. Get in touch with our experts, to know how we can help.