What is The Offshore Set Up Process?
Setting up an offshore company in Dubai is easy and hassle free and only requires you to follow a few simple steps. The process involves:
- Company name
Register the name of the company, while ensuring the name does not include certain keywords that are not permitted by UAE law. This is a part of the process that can prove tricky for some companies and Charterhouse can ensure you remain legally compliant on this aspect.
- Complete the application
The next step in setting up a company in Dubai is to provide various documentation. This includes proving the identity and address of directors and shareholders (passport), submitting a CV for each director and shareholder and a bank reference document.
- Open an offshore bank account
You can then set up an offshore bank account which enables the business to carry out financial transactions.
Companies that apply to set up an offshore company in Dubai as a multiple corporate entity will need to supply certificates that prove the registration and current good standing of the business, along with the Memorandum of Association (MOA) and the Articles of Association (AOA), and a board resolution (relating to the setting up of an offshore company).
Why Are Offshore Companies So Attractive?
There are many reasons why incorporating an offshore business in Dubai is so attractive. The potential tax savings usually sit close to the top of the list, closely followed by the enhanced level of privacy, offshore asset protection and the possibility of creating wealth through contracting or international trading.
What’s Included in Our Service
At Charterhouse Lombard we understand the process involved with setting up an offshore company in Dubai and have helped countless companies to successfully navigate the various legal requirements. International trading in Dubai offers a wide variety of commercial benefits and we can help you overcome any initial regulatory issues you could potentially experience.
Our company incorporation services in Dubai are available to both individuals and businesses who want to manage their assets in the country. From the formation and administration of your offshore company and preparation of relevant documentation, to the establishment of bank accounts and much more, we’re here to guide you every step of the way.
We understand that forming a company in a new region can pose a few challenges, especially if this is your first time. It’s an area we specialise in, and our services provide bespoke solutions that are based on your individual circumstances.
Our consultants can also advise on the most suitable jurisdiction for your company, taking into account compliance requirements, current political environments and local state laws and regulations.
Get in touch with the Charterhouse team today to find out more about setting up an offshore company in Dubai and we’ll tell you everything you need to know to get started.
Advantages of Dubai Offshore Companies
If you set up an offshore company in Dubai, your business will enjoy perks such as:
- No corporate tax
This means your company does not have to pay any corporate tax at all, which is great news for new offshore companies in Dubai who want to maximise their profits.
- 100% foreign ownership
Foreign ownership is restricted to 49% outside of free zones in the UAE, but an offshore business in Dubai can trade in the free zone and internationally.
- Enhanced privacy
To register the company, you only need to include one director and one shareholder. This ensures more privacy and confidentiality for everyone involved in the company.
- Full repatriation of capital and profits
You can also transfer funds for free while there is an exemption from import and export duties, as long as goods are not being sold on the local market.
- No currency limitations
You can use any currency from any part of the world as capital to fund your business, which makes it easy to transfer and manage.
- Corporate bank account
Setting up an offshore company in Dubai opens the opportunity to set up a corporate bank account in the region.
- Select country of law
As part of the set-up process in Dubai, you also have the option to select a country of law – for example, if you are from the UK, you could choose English common law.
- Fast incorporation
Most offshore companies in Dubai can be incorporated in as little as 24 hours, providing all the required documentation has been received and is in order.
- Virtual offices
While your offshore business in Dubai will not be able to have physical premises in the country, you can set up virtual offices to conduct your international operations.
What Is the Tax Status of Dubai Offshore Companies?
One of the main attractions for businesses setting up an offshore company in Dubai is that it offers tax free status for offshore companies that are registered in any of the free zones. This includes both corporate and income tax, giving new companies greater levels of flexibility to build wealth.
In addition, you can also keep 100% of the returns from the business without restriction. It’s why Dubai and the UAE has attracted so much investment in recent years, strengthening the economy the potential of companies that are registered in the country.
Downsides To a Dubai Offshore Set Up
There are some disadvantages to setting up a Dubai offshore company that you should be aware of before starting your application. This includes:
- An offshore company set up in Dubai cannot trade in the city or in the UAE
- Your company is also not allowed to rent premises in the UAE, employ staff in the country or apply for residence of work visas for staff members
- Offshore businesses in Dubai are not allowed to use the UAE’s double taxation treaties to lower global withholding tax
- An offshore company in Dubai also cannot invest in UAE real estate
What Jurisdictions and Areas Support Offshore Set Up?
Ras Al Khaimah (RAK) and the Jebel Ali Free Zone (JAFZA) are the two principal jurisdictions that allow offshore companies to set up operations in the UAE. You can read more about the pros and cons of each are in this detailed article here. The Charterhouse team are also available today to discuss your options and which jurisdiction is best for your business.
What Documents Are Required?
To set up an offshore company in Dubai you will need the following documentation:
- Passports of all directors, shareholders, and UBO’s
- Proof of residence (this can be a utility bill)
- CV of the shareholder
- Suggested name and activities of the proposed offshore company
- Information about the beneficiaries of the company
The requirements for corporate entity shareholders are slightly different. The documents you need for this will be:
- Original shareholders’ resolution
- Attested copy of Trade license or incorporation certificate copy
- MOA (Memorandum of Association) of the parent company
- Passports of the shareholders, director’s secretary of the proposed offshore company
- Attested copy of the parent company’s Certificate of Good Standing
- Incumbency certificate of the parent company (which contains the name of the directors and shareholders)
Why Choose Charterhouse to Set Up Your Offshore Company?
Setting up an offshore company in Dubai opens up a range of financial and legal benefits for your business. However, the process can appear confusing and complicated if you have never gone through the process in the UAE before.
Charterhouse provide fast and efficient support to ensure you can cut through the red tape and set up your offshore company quickly while remaining compliant. We’ve been helping businesses and individuals for over 10 years, assisting with every aspect of the process to make it as smooth and easy as possible.
Beyond setting up an offshore company in Dubai, Charterhouse also provide a range of corporate services to ensure you have the long-term support you need. This ensures you have access to our expertise for as long as you need, with our offshore company administration services keeping a close eye on any important changes to regulations in your chose jurisdiction.
If you want to find out more about our offshore company formation services in Dubai, contact the Charterhouse team today and we’ll be happy to discuss your options in more detail.
