Offshore Company Formation in the UAE

cheapest offshore company formation in uaeThe United Arab Emirates is a federation of seven emirates, they are Dubai, Abu Dhabi, Sharjah, Ajman, Ras al-Khaimah, Fujairah, and Umm al-Quwain. UAE is a country located in Western Asia or the southeast end of the Arabian Peninsula on the Persian Gulf, it is bordered to the east by Oman, south by Saudi Arabia, sharing maritime borders with Qatar to the west and Iran to the north. Each of the seven emirates has a ruler; together they form the Federal Supreme Council. One of the rulers serves as the President of the United Arab Emirates. 

The United Arab Emirates has a population of over 9 million people. Islam and Arabic are the official religion and language respectively of the UAE. The currency is the United Arab Emirates dirham. The UAE is a member of the United Nations, the Arab League, the Organization of Islamic Cooperation, OPEC, the Non-Aligned Movement, and the Gulf Cooperation Council. 

The United Arab Emirates permits the set up of an offshore company within its territory, offshore company formation is regulated by the Jebel Ali Free Zone Offshore Companies Regulations 2003. Offshore Companies registered in UAE are not the same as the UAE Free Zone companies. 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.

Advantages of Offshore Company Formation in United Arab Emirates

  • A gateway to the international market ad funding on a much larger scale (growth);
  • Access to a stable and business-friendly legal system;
  • Protection or separation of assets, such as intellectual property from other legal entities;
  • Corporate tax exemption - no corporate or personal income tax are remitted at any level;
  • Complete foreign ownership of an offshore company - there is no requirement regarding the mandatory listing of a UAE citizen as a local shareholder;
  • Simple and straightforward registration procedure - following the due and right registration process, the process can be completed within a week (5 working days);
  • No minimum share capital requirement;
  • Shares can be transferred in offshore companies easily;
  • The offshore company can decide to make use of either the UAE or home country’s law;
  • Double tax treaty agreement with 40 other countries.

Offshore Company in UAE: Taxes

There are low or no corporate taxes on profits for offshore companies. No income taxation for company owners and employees. Simplified financial reporting system – no annual audit required.

Types of UAE Offshore Companies

  • Jebel Ali (JAFZA) offshore company;
  • RAK (Ras Al Khaimah) offshore company;
  • Ajman offshore company.

Advantages of Ras Al Khaimah (RAK) Offshore Company Formation

  • A tax free environment with no exchange controls;
  • Relatively low cost of registration and incorporation;
  • International trade access (trade outside of UAE);
  • One director and one shareholder
  • UAE Bank account;
  • No currency control;
  • High level of confidentiality;
  • No auditing;
  • Rapid incorporation;
  • No restriction on capital expatriation;
  • No citizenship restrictions for Directors & shareholders;
  • Paid up share capital not required.

Advantages of Offshore Company Registration in Jafza (Jebel Ali Free Zone)

  • Complete foreign ownership of the company;
  • Ownership of a Local real estate in UAE territories;
  • Shares in local companies (both free zone and onshore (LLC) companies;
  • Access to multi-currency bank accounts in the UAE for international transactions;
  • Not mandatory for the names of shareholders and directors to be disclosed on a public register.

Requirements to Incorporate an Offshore Company in United Arab Emirates

The following requirements are needed when deciding to open a company(offshore) in UAE, they include:

  • Minimum of a shareholder;
  • Minimum of a director;
  • Passport copy of the director and shareholder;
  • Proof of residence;
  • Proposed offshore company name;
  • Proposed services of the offshore company;
  • CV of the shareholder;
  • Certificate of the company’s registration or trade license(notarized by the UAE embassy);
  • Incumbency certificate of parent company;
  • Memorandum and Articles of Association of the company;
  • Bank reference letter;
  • Certificate of the company’s good standing;
  • Board resolution for the establishment of an offshore company (deciding to acquire shares of the JAFZA offshore company setup or UAE RAK offshore company setup), directors’ appointment and the legal representative of the company.

The following are included in an offshore company package, they are one year RAK or JAFZA Offshore authority fees, JAFZA/RAK offshore registered agent services, registered office address in Dubai, Registered PO Box, Bank account opening consultancy and UAE offshore company legal documents preparation.

Offshore Company Set Up in UAE: Process

Step 1. Law and Trust works with the client to get the company’s name and activity approval from the Company Registry);
Step 2. Law and Trust files the necessary document on behalf of the client to the relevant authority in the United Arab Emirate;
Step 3. Law and Trust works to secure business premises and a tenancy contract (12months minimum) for the client’s company;
Step 4. Law and Trust works to open a corporate bank account;
Step 5. Law and Trust with the client and local partner get a drafted Memorandum of Association (MOA).
Step 6. Law and Trust submits MOA, license application, tenancy agreement and other necessary documents to the Company Registry for approval.

UAE Offshore Company Formation FAQs

  • How much does it cost to register a offshore company in United Arab Emirates?

The cost of registration depends on the form of company, the Emirate and certain other requirements. The total cost of registering a company in the UAE will include preparation of legal documents, company registration, payment of all taxes and fees at the time of registration and legal address of the company for a (one) year.

  • How long does it take to register a UAE offshore company?

Depending on the nature of the company, it takes from one (1) week for RAK and four (4) weeks for a JAFZA offshore company to be registered.

  • Do I need to visit the UAE to register a UAE Offshore company?

This will depend on what offshore company is to be registered. It is not necessary to visit the UAE for a RAK offshore company, but it is important for a JAFZA offshore company.

  • Do I need to have my bank account located in UAE or can I have an international account?

A bank account in UAE helps you maximize the banking services and benefit of no corporate tax but it is possible to have other international accounts.

  • Is it possible to obtain UAE residency visa through a UAE Offshore company?

It is not possible to obtain UAE residency visa via the incorporation of an offshore company in UAE.

Why Incorporate with Law&Trust International?

Benefits of incorporating an offshore company in UAE with Law&Trust International include:

  • Full range of related services:  A detailed overview of our services include full legal support during the company registration procedure, obtaining a legal address, interaction with the official authorities of the jurisdiction, and advising the client as part of the registration process. Opening a bank account and the cost of this services are discussed during the consultation.
  • Professionals and expertise of Law: Offshore incorporation in the United Arab Emirates, Law and Trust provides the client with the best company incorporation services.
  • Free initial advice: Free consultation from the lawyers of Law&Trust International regarding strategies or the provision of services for analyzing and developing legal position on an issue the client raises anywhere in the world.
  • Confidentiality: Law&Trust makes use of modern technological features to keep the records and details of every client safe.
  • Efficiency and productivity: Strategically providing up to date personalized services to help your business succeed.

Ready for Company Incorporation?

If you are interested in incorporating an offshore company in the United Arab Emirates , contact Law & Trust International by simply sending an email or call now to take your business to the next level!