The United Arab Emirates is one of the largest international economic centers. This is a country with a developed economy and a reliable banking system, and a stable exchange rate of the national currency, so doing business in the UAE is prestigious and profitable. Foreign businessmen can set up local, onshore, and offshore companies.
Restrictions and procedures for opening an offshore company
The UAE offshore company is opened in one of the three free zones, while activities can only be carried out outside the country. Some limitations are recommended to be familiarized with before registering an offshore company.
It is forbidden not only to conduct business in the country but also to cooperate with local organizations. At the same time, it is allowed to buy shares of such firms. Founders do not receive a resident visa and cannot rent a real office.
Despite several restrictions, the registration of offshore companies for foreign entrepreneurs allows you to profitably conduct international trade. A distinctive feature of offshore is the absence of tax on income, capital gains, dividends, etc.
Depending on the emirate, the requirements for foreign offshore owners and the registration procedure may differ. Taking into account the type of activity, it is necessary to select a suitable free economic zone and type of company.
The name of the company must correspond to the corporate activities. To register an offshore company, you should contact a special registered agent who is licensed and helps with the opening of an offshore company.
After collecting the package of documents, their translation, and payment of the state duty, the owner of the company receives all the documentation in his hands and goes to the bank to open an account. Both individual and corporate shareholders can open an offshore company in the UAE, while the list of documents is different.
Individual owners must provide the agent with a passport, resume of the potential founder, company name, and proof of residency. If the owner of the offshore is a legal entity, then an additional statement from the bank on the state of the account, from the tax authorities, etc. will be required.
Benefits of registering an offshore company in the Emirates
To register an offshore company in the UAE, you can choose one of the three proposed free economic zones.
The opening of such a company has several undeniable advantages for foreign entrepreneurs, namely:
- No taxation when carrying out company activities outside the Emirates;
- Lack of obligations to maintain financial statements, maintain a register, and publish financial statements in the register;
- The minimum terms for registering an offshore company in UAE, from 3 to 7 days;
- An offshore company in the UAE provides a high level of confidentiality, and information about the management and owners of the company is not disclosed;
- Registration of an offshore company in Dubai, UAE – the documentation regarding the registration of the company and the Charter is certified by the register, while all the constituent documents are provided in English, which gives further comfort when working with the company;
- Mandatory presence of one director, however, the number of directors and their residence is not limited by law;
- The head of an offshore company in UAE can also be the nominee and have any citizenship;
- Mandatory presence at registration of at least one owner/founder. The place of residence of the founder and his citizenship do not have any restrictions (except for general international rules about countries under international sanctions);
- Management of the company directly by the founder of the company is acceptable.
- An offshore company registered in the UAE must have an accredited agent and an officially registered office of the company. For you, our company can act as such an agent, since it is registered and has the legal status of a registered agent of this type of company and has a fully operating office in the UAE.
Thanks to a closed register, it is impossible to find out information about the owner of an offshore company. Compared to local and onshore ones, it is cheaper and faster to open an offshore company.