Establishing an offshore company in Dubai

Establishing an offshore company in Dubai, there are many companies that conduct their business in other countries far from the countries they belong to, and often the main reason behind the desire to do this type of foreign business is It is the investment incentives provided by these countries, including low taxes and access to various facilities and aid.

Therefore, the United Arab Emirates government allows investors the possibility of establishing an offshore company in Dubai and other emirates, and this is what we will know in detail in the following lines.

 

Establishing an offshore company in Dubai

 

Offshore companies in Dubai

State statistics indicate that more than 90% of companies have regional headquarters, and the Emirates airport has become crowded and attracts its businessmen, as the Forbes Global 2000 list of listed companies is not 100 companies also on its territory, and there are 50 companies private in the financial market and 50 others that undertake economic projects, other than Expatriates, as well as expatriates from outside the Emirates, worked hard to build projects, but the effort to achieve trademarks led to an increase in the Emirates’ economy, and Ham Company was distinguished by its great excellence in services of all kinds.

 

What are offshore companies?

The meaning of an offshore company as a literal translation: the far coast, or meaning outside the borders of the country, and all of these words have meanings outside the borders of the state. In offshore companies, they are companies that are registered according to the law of the countries in which they perform their commercial activities, which are the ones in which the company registrar resides, who undertakes the task of establishing Offshore company in Dubai for investors.

It is also a group of legal commercial entities or some companies specialized in manufacturing and providing commercial services outside the borders of their country, and it is possible to include offshore companies companies that invest in the field of mining or oil and extracting gas from seas far from their countries, and there is a big difference between Local companies and foreign companies.

 

What is the difference between offshore companies and onshore companies?

It is possible for businessmen to establish an offshore company in Dubai in the free zone, but they cannot carry out any commercial activities within the United Arab Emirates Besides this, they can be used to establish business in cooperation with different countries and gain a better reputation, which indicates the meaning of an offshore company.

On the other hand, local onshore companies have the full right to carry out all forms of commercial activities within the United Arab Emirates, and of course there is a radical difference in the rules and regulations that are applied to internal and external companies, and there are also many advantages for businessmen and foreign investors who wish to Opening offshore companies in excess of those located inside to establish business in the Emirate of Dubai.

One of the most important things that motivates foreign investors to establish an offshore company in Dubai is that the UAE government allows foreigners full ownership of these companies on the territory of the UAE, in addition to the low taxes that are applied to foreign companies, which provides a lot of financial resources for the company to invest and benefit from in development. those companies.

 

Advantages of establishing an offshore company in Dubai

There are a number of advantagesestablishing an external company for foreign investors who wish to establish their companies in the Emirate of Dubai, and these advantages are as follows: a>

  1. With regard to the capital for establishing an offshore company, it can be of any value desired by the investor and divided into any category.
  2. It is characterized by the fact that you can establish the company with the smallest number of shareholders and managers of the company.
  3. The value of all shares must be paid upon allocation. Bearer shares or different classes of shares are not permitted. In addition, it is not required to deposit capital in the bank.
  4. Foreigners are allowed 100% ownership of offshore companies with a 100% exemption from duties and taxes when establishing an offshore company in Dubai.
  5. It is allowed to open corporate bank accounts in a bank in Dubai.
  6. An authorized agent, whether legal companies, auditors or consultants, is requested by the company from the list of agents approved by the free zone in the United Arab Emirates.
  7. The headquarters of the offshore company is located in the free zone within the United Arab Emirates.
  8.  Investors do not need to go to the Authority in order to establish the company, however, the documents must be authenticated at the authorized agent’s office.
  9. Audited financial statements will be requested if there is any doubt.

 

Conditions for establishing offshore companies in Dubai

According to the systems and regulations issued by the Free Zone Authority that govern and organize the work of offshore companies, a set of conditions have been set for establishing offshore companies in Dubai These conditions include the following:

  • It is possible for any individual or group to submit a signed application to the Registrar in order to obtain a certificate to establish an offshore limited liability company in Dubai.
  • The investing person can go to establish an offshore company in order to carry out any legitimate business through it, except for businesses that violate the conditions specified under the regulations.
  • Each offshore company has its own management structure and only one type of shares of equal value.
  • The company wishing to carry out its activity is required to obtain licenses to practice this purpose through the competent authorities and authorities.
  • Offshore companies do not have the right to practice banking, insurance, or any business prohibited by the competent authorities from time to time.
  • Every company must issue a financial statement that has been audited by a certified auditor and filed with the Registrar of Companies.
  • The company must have a registered office in the free zone and have a legal agent approved by the region’s authorities.

The application to establish an offshore company in Dubai must be signed by the company’s founders, and the application must state the following:

  1. The name chosen for the offshore company, provided that it ends with the word “limited”.
  2. The address of the company’s registered office as well as the purpose of its establishment.
  3. The nature of the company’s work.
  4. The value of the share capital that is supposed to be registered and divided into shares with fixed values.
  5. The full names of the founder or founders, as well as the persons serving as members of the board of directors.
  6. Any other information and details that the company registrar may request when undertaking the task of establishing an offshore company in Dubai.

Of course, it is required to obtain the necessary licenses to start establishing an offshore company in Dubai, and in order for you to know how to obtain these licenses, we have brought you the following paragraph.

 

License to establish an offshore company in Dubai

Offshore company establishment licenses are important in order to complete the incorporation process correctly.

The costs for issuing a regular commercial license are about 10,000 UAE dirhams, in addition to other fees such as registration fees, virtual office and virtual rent, annual renewal fees, and other fees and costs.

There are 5 types of licenses that can be issued in order to establish an offshore company in Dubai, specifically in the free zone, and these licenses are as follows:

  • Industrial license: for small industrial activities.
  • Logistics license: This license is only issued in the logistics services area, in order to carry out logistical services.
  • General Trading and Trading License: This license is specific to importing, exporting, storing and distributing the types of products mentioned in the license, as well as selling them in the UAE markets through local distributors.
  • Service license: These licenses are for the services mentioned in the license in the Dubai South Free Zone and other places within the borders of the United Arab Emirates.
  • Education license: This type of license is used for social, training, and educational services, as well as educational consulting services. This license is a must when starting to establish an offshore company in Dubai.

 

What is the validity of offshore companies?

The offshore company has the same rights and privileges as a natural person, and the authority of the offshore company is not limited to any provisions mentioned in its articles of association, nor is it limited to any actions performed by the company members.

  • An offshore company is not entitled to conduct business with individuals residing in the country.
  • It is not entitled to own an interest in real estate in the United Arab Emirates, with the exception of lease contracts mentioned in the regulations or as approved by the competent authorities.
  • The offshore company may not engage in any banking business after the investor completes the stages of establishing an offshore company in Dubai.
  • The offshore company may not engage in insurance or reinsurance business, and it may not act as an agent or insurance broker.
  • The offshore company is not permitted to engage in any other business that is prohibited in the regulations established by the authorities, or under the law.
  • Do not treat offshore companies as if they are conducting business with individuals residing in the UAE.
  • If an offshore company wants to conduct commercial business or any other business in the free zone or in other places within the UAE, it must obtain licenses from the competent authorities.

 

Procedures for registering offshore companies in Dubai

When establishing an offshore company in Dubai, the registrar has the right to refuse to register offshore companies if he has any reason that he believes is valid for refusing this registration.

If the Registrar refuses to grant his approval to register the offshore company, he is not required to provide any reasons for the refusal and his decision is not subject to review or appeal.

In the event that the Registrar grants approval for the establishment of an offshore company, registration of the company’s bylaws is made, and the company registrar does the following when registering the offshore company’s bylaws:

  • Submitting an offshore company registration certificate.
  • Determine a number for the offshore company and this number will be registered to it.

After you have learned about the procedures for registering offshore companies, your mind will come to mind: what are the documents required to establish an offshore company, and this is what we explain to you in the following paragraph, and for more details about registering companies.

 

Documents required to establish an offshore company

When establishing an offshore company in Dubai, some necessary documents are required for the individual or company, and we explain them in the following:

Documents required to establish an offshore company in Dubai for individuals

  • A copy of the passport for all shareholders.
  • Proof of residence – a utility bill showing his name and address for a maximum of 90 days.
  • Fill out the application form in accordance with the rules.
  • Reference letter from the bank.
  • Business profile of shareholders.
  • Proposed name of the offshore company.
  • Proposed activities of an offshore company.

 

Documents required for companies

If you want to establish an offshore company in Dubai, you must know that the documents required for registration in the case of individual shareholders are different from those in the case of corporate shareholders, as the documents required from companies are as follows:

  • Company registration certificate certified by the UAE embassy/consulate in the home country.
  • The company’s certificate of good conduct is certified.
  • The company’s articles of incorporation and articles of association.
  • A decision issued by the company’s board of directors.
  • All of these papers must be notarized and certified.

 

Costs of establishing a company in the UAE

If you want to establish an offshore company in Dubai you must know that the most important step in developing a business plan that can be applied is determining the initial costs for establishing or establishing Offshore Company, and the tax exemption feature in Dubai is one of the most important factors of attraction for many contractors, and you must take into account and take into account that there will be fees that will be required. From you in order to issue new commercial licenses, and the Department of Economic Development’s website allows company owners to estimate the licensing fees required to be paid to issue their business licenses.

 

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