An offshore company refers to a business that is incorporated outside of the country where investors live. Foreign investors register their business as a Dubai Offshore company. Dubai is considered as a high status place for setting up a new business. Offshore companies work mainly in investment, trading, real property ownership, yacht owning, holding, ship management, etc. Offshore company of Dubai is not allowed or permitted for trading in United Arab Emirates. It is also not permitted to rent local offices in UAE. For registration only two directors and one shareholder is required.
To carry out business registration procedure for Dubai offshore company, a registered agent needs to be appointed to carry out necessary procedures. It is not allowed to carry any business activity in UAE local market.
Business consultants help in document submission, document preparation, opening a bank account, meeting bank representative, getting approval from department of security. You need a consultant with professional excellence which will guide you on setting up of your offshore company. Consultant will help in paying registered agent fees, registered office costs, and governmental charges.
Documents required regarding incorporation of an offshore company are-
- Passport copies of directors and shareholders
- Company’s name to be incorporated
- Profile or CV of the investor
- Shareholder’s residential address confirmation
Advantages of Formation of Dubai Offshore Company-
There is no doubt that opening an offshore company in Dubai is highly beneficial. However, it is important that you pay attention to all the legalities that are involved in the process. Working with an expert can help you navigate the maze of paperwork involved with regards to taxations, insurances and other regulations. You can read more on insurance authority in Dubai here.
- Use of any currency.
- All import duties are exempted.
- Permission of Full foreign ownership.
- Simple and quick for setting up of business in Dubai.
- Keeping prestigious image of clients.
- Any type of international business is suitable.
- Tax obligations and accounting charges are exempted.
- 100% tax free registration in Dubai.
- Simple regulatory and reporting requirements.
- Company officers are not required to public register.
Why to choose an offshore company?
Combination of factors which make Dubai a preferred destination to setup a offshore company are-
- Tax Relief – Zero tax policy is the prime reason which drives an offshore company to setup in Dubai. No inherent tax, income tax, corporate tax, personal tax is levied which ensures great return on investments.
- Easy incorporation – The formation of offshore company is quick and simple, mostly completed in 3-7 business days. Registration requires only one director/shareholder to be present and there is no need of any physical office.
- Anonymity – With the document record of shareholders, board members and principals are kept discrete, the maximum level of level of confidentiality is maintained.
- Complete Ownership – 100% ownership is provided to foreign entrepreneur for whom there is no need of a local partner.
- Progressive Business Environment – Status of Dubai is well-known for ease of doing any business, supportive and sound infrastructure, banking facilities, economic facilities. That’s a type of progressive system required for any company to flourish.
- Cost Advantage – Registration of an offshore company is either at par or in fact economical than free zones or any mainland jurisdictions.
- Asset Protection – The Regime helps in safeguarding company’s intellectual property, real estate and other assets.
- Foreign Employees – Theoffshore company can hire any foreign nationals and help them in relocating them in Dubai, which means there is quick and easy visa process.
Step by Step Procedure for Setting up an Offshore Business in Dubai
With assured Asset Protection, Tax benefits, confidentiality legislation, high returns, cost advantage, offshore scene of Dubai is flourishing. Global outreach and high profitability benefits are needed to be capitalized by forming an offshore company.
- Company Name – For a person’s proposed company, he needs to suggest three namesto get the process underway of company’s incorporation. Final name is picked by registration authorities. Suggested names should not include name of any country or continent. Nationality indicating names are permissible.
- Business Activity Determination – Determining what business activity will be performed post setup. Popular options are shipping, holdings, trading, consultancy, professional services, etc.
- Ownership Structure Finalization – Determining who are the shareholders, directors and principals. For offshore company formation, you need to have at least two directors and one shareholder which is a must obligation.
- Documents Needed – Passport copies of shareholders and directors, original address proofs, reference letter issued from bank, Memorandum of Association, share certificate, shareholder’s CV.
- Submission of Application – Consisting of above mentioned documents, application needs to be submitted. 3 Business days at least are taken for approval and the things needed after approval are MoA, Share certificates and Certificate of Incorporation.
- Opening of Bank Account – Now the final step is opening a bank account which will help in getting access to trouble-free lines of credit resulting in business growth. Documents needed for opening of a bank account are: Bank Forms, Bank Statement, passport Copy.
Role of a Business Consultant in helping a Foreign Investor Setup an Offshore Company-
A Foreign investor needs to be aware of compliance standards and applicable regulations for offshore company formation in Dubai. Documentation process is monotonous, plus it wastes your time. For this process, a business consultant comes to a rescue- Hassle free document moving forward across various departments and ministries. Plus, it’s mandatory by government to hire a consultant or registered agent for the formation of offshore company.
Business consultants should be knowledgeable, experienced and driven professionals to carry out this tedious process of incorporation. Various responsibilities handled by them are bank account opening, secretarial, company registration, PRO and nominee shareholder works. Personalized experience should be provided to all the clients so that they can get what they want exactly. Documents should be submitted timely as per the requirements of ministries to avoid any discomfort or delay. To avoid any fiscal loss, procedural delays, penalties, business consultants need to adhere with all compliance standards and regulations. Fees charged by these agents should be economical so that it does not affect the returns so much.
So, what are you waiting for? Hire these business consultants and they will help you to do every tedious job which would have taken time if you have to do it yourself.