Offshore companies provide a gateway for international expansion and don’t have their primary market in the registered jurisdiction. Dubai is one of the most popular regions for opening an offshore company. Businesses prefer going for offshore company registration in Dubai, thanks to the array of benefits it offers. It allows a cheap, low-cost setup alongside tax-free functioning (or minimal taxation laws).
With the business-friendly regulations maintained by the Emirates, an offshore company in Dubai is an opportunity you don’t want to miss. If you’re looking to register an offshore company at affordable costs, you need to have an in-depth understanding of business setup mechanisms in the UAE. The process of an offshore company set up in Dubai is straight-forward and takes only three to four weeks if you have all the valid documents. The best way to go about it is by taking assistance from Dubai business experts.
Affordable Offshore Company Setup Zones in the UAE
Offers like tax neutrality and increased capital gains attract new-age investors and entrepreneurs to have an offshore company establishment. The prominent regions that have the best amenities and infrastructure to facilitate hassle-free offshore company setup in Dubai are:
JAFZA Offshore Jurisdiction
JAFZA (Jebel Ali Free Zone Authority) is among the fastest-growing offshore company zones in the UAE. It offers unique benefits not provided by other zones or jurisdictions.
- JAFZA has a strategic location that places it in proximity to Dubai, Abu Dhabi, Jebel Ali Port, and Al Maktoum International Airport. There’s no personal tax on income, no corporate tax for up to 15 years, no duties on export and imports, and labor resources are easily available.
- JAFZA is the only offshore company zone that provides permission to directly own real estate in Dubai and companies can hold shares in LLC and free zone both.
- Company registration under JAFZA jurisdiction takes around four weeks if all valid and required documents are available. You get appropriate support from the governing authorities too.
Setting up an offshore company in RAK (Ras Al Khaimah) jurisdiction has its own benefits. Located near Dubai, this zone boasts of having the highest industrialization in the country and has attracted a lot of international businesses.
- Company registration under RAK jurisdiction is the fastest. It takes only a week if all the required documents and certifications are available.
- Setting up a company in RAK jurisdiction is almost 25% to 50% cheaper than setting up a company in any other region of the UAE. This allows you to get maximum return on your investments.
- You don’t have to submit company reports for each fiscal year to the RAK authorities. Therefore, you need to maintain the records for the past seven years and present them whenever the governing bodies ask for them.
Ajman Free Zone Authority (AFZA) is another premier industry hub that empowers the up-and-coming businesses to set their foot in the UAE’s competitive ecosystem.
- Expats can enjoy 100% ownership rights, and you also get complete repatriation of the profits you earn under AFZA’s jurisdiction.
- Budding startups having limited budgets but high business aspirations don’t need to purchase or rent an office space for their AFZA offshore setup. They can invest this money to bolster their company’s growth and acquire premium resources to expand their market. For documentation, you can use the address of your Ajman agent.
- Businesses have the right to buy or sell a property in the UAE. However, they must have additional approvals and allowances from the concerned real estate department.
The business activities of your company would decide which offshore establishment you should prefer. You can always take the help of legal advisors at Shuraa for any guidance related to business formation in the UAE.
Benefits of Offshore Company in Dubai
Offshore company registration in Dubai is a smart choice for investors as they get access to the various benefits that come along with an offshore setup. Here are some key benefits that make it a viable option for businessmen:
- Offshore companies enjoy advanced banking facilities. This saves them from cash crunches, financial instabilities, and other money-related issues that may arise during their business reign. The governing bodies follow a model of sheer transactional transparency. You’ll know the details of every single AED that you pay for licensing, maintenance, etc.
- It’s not mandatory to form an LLC here. Therefore, you don’t have to rely on a UAE sponsor for your company’s establishment. Moreover, you can run your business with complete ownership without having to share it with local agents.
- Your business information, day-to-day activities, and financial audits are kept confidential, and the government has established strict rules in case of any infringement. Therefore, you don’t have to worry one bit about data privacy and document secrecy.
- Operational costs are relatively low in offshore zones. Resource management and availability, on the other hand, is extremely convenient. Furthermore, there aren’t any restrictions on the usage of foreign currency as well.
- Apart from being cost-efficient, you also have relaxations on your custom duty, taxes on import and export, etc. VAT is not applicable if you have an offshore company setup in Dubai. This is advantageous when compared to the conventional company formation model where you need hefty initial investments to own your company.
Documents Required to Open Such a Company in Dubai
Documentation and paperwork evaluation is an integral part of company formation in the UAE. With the right understanding of the various forms and documents you need to submit, you can easily get your business license approval from the concerned authority.
Here’s the list of documents needed to launch your offshore company:
- Notarized passport copies of the shareholders
- Original bank reference letter
- A list of 3-5 names for trade name reservation
- Residential address proof
- Business plan document and CV of the owner
- Attested Memorandum of Association (MoA)
- A legal trading license (acquired after submitting the documents)
Consult with Shuraa
Given the business-friendly policies and high standard of living, Dubai is the top choice for setting up an offshore company. At Shuraa Business Setup, we guide you through all the processes and help you with the associated paperwork at the most economical costs. Take the first step and consult with us. We’ll help you through your business journey to ensure that your offshore company achieves immense business growth.