Establishing offshore companies in Dubai

Establishing offshore companies in Dubai In all its investment transactions, the UAE seeks to always ensure that all its investors legislate stimulating investment facilities by providing integrated services that allow them to carry out their foreign commercial activities, which has made many large and medium-sized companies turn to the UAE to enter into foreign projects. These projects can be implemented through offshore companies.

The Dubai government allows investors to establish offshore companies that wish to enter into projects outside their main offices, but at the same time they do not want to operate from their main headquarters in their countries. It also provides broad investment opportunities through the free zones available to it, but it has set conditions, regulations and international standards that apply to… These companies highlight their multiple activities.

 

Establishing offshore companies in Dubai

 

What are offshore companies?

Many commercial companies operate in countries other than those to which they belong or in which they established their business as a country of nationality, and the trend for these foreign businesses is often due to the investment incentives offered by those countries, including low taxes and packages of facilities and aid they provide.

What is meant is offshore companies, if we take the literal translation term (far coast), or outside the borders, or beyond the seas, all of which mean outside the borders of the state. Offshore companies are companies registered according to the law of the country from which they carry out their activity and in which the company’s registrar resides.

They are also legal commercial entities or a group of companies that participate in providing and manufacturing commercial services outside the borders of their countries. Companies that invest in the fields of mining, oil fields, and gas extraction fields in the distant seas of their countries may fall under this name.

 

Characteristics of offshore companies

The activities of commercial companies vary depending on their field of work, and the laws of those countries that set their commercial legislation differ according to their interests. However, all offshore companies are subject to the relevant laws and regulations of the country, despite it having characteristics and advantages that may not be available to other companies, including:

  • It is not subject to taxes imposed by the country in which it establishes its business
  • Flexibility of trading systems that deal
  • The great facilities provided to it and the global exchange and spread

In the Emirate of Dubai, it is not forbidden to own an offshore company, but it requires knowing and clarifying the true type of activity of these companies and the source of their financial flows, and knowing the ultimate beneficiary. In light of this and in accordance with the conditions set by the legislation, it gives the investor the right to establish an offshore company in the Jebel Ali Free Zone in Service and commercial activities.

 

Validity of offshore companies

  • An offshore company has the powers, rights and privileges of a natural person
  • The authority of the offshore company is not limited by anything stipulated in its articles of association, or by any action undertaken by its members
  • Offshore companies may not conduct business with persons residing in the country
  • It is not permissible for her to own an interest in real estate in the United Arab Emirates, other than the lease contracts referred to in the regulations or as approved by the Authority.
  • Offshore companies may not engage in banking business
  • Offshore companies may not practice insurance or reinsurance business, or be an insurance agent or broker
  • It is not permitted to engage in any other activities prohibited by the regulations established by the authority or by law
  • The offshore company is not treated as doing business with persons residing in the UAE
  • If an offshore company wishes to practice trade or any other business in the region or elsewhere in the UAE, it must obtain a license from the competent authority.

 

Conditions for establishing offshore companies in Dubai

According to the regulations issued by the Jebel Ali Free Zone Authority regulating the work of offshore companies, when establishing companies, the following regulations were established:

  • Any one or more persons may submit a signed application to the Registrar for a certificate of incorporation of an offshore limited liability company.
  • An offshore company may be established in order to conduct any lawful business, except for what is contrary to the conditions and specified under the regulations.
  • Each offshore company has a management structure and one class of shares (of equal value).
  • The company that wants to practice its activity must obtain a license for this purpose from the competent authorities.
  • Offshore companies are not entitled to practice banking, insurance, or whatever the competent authorities may report from time to time.
  • Every company must issue a financial statement that is audited by a certified auditor and filed with the Registrar of Companies.
  • The company must have a registered office in Jebel Ali Free Zone and have a legal agent approved by the zone authority.
  • Signature of the application by the founders, provided that it states the following:
  • The name of the thousand shore company, ending with the word “limited”.
  • The address of the registered office of the company and the purpose of its establishment.
  • work nature.
  • The amount of share capital proposed to be registered and divided into shares of a fixed amount.
  • Full names of the founder or founders, and persons serving as board members.
  • Any other details that the Registrar may request.

 

Registration of offshore companies

  • The Registrar may refuse to register an offshore company for any reason he believes is valid for refusing such registration.
  • If the Registrar refuses to give his approval for the registration of an offshore company, he is not required to provide any reason for his refusal and his decision is not subject to appeal or review.
  • If the Registrar grants approval, the company’s articles of association are registered.

 

When registering the bylaws of an offshore company, the registrar shall do the following:

  • Providing a certificate that the offshore company has been registered.
  • Allocating a number to the offshore company that will be its registered number.

 

Change registered name

  • An offshore company may change its name, provided that it is acceptable.
  • In the event of a name change, the Registrar enters the new name in the register in place of the previous one, and issues a certificate of incorporation accordingly.
  • The change of name shall not affect any rights or obligations of the Company or render unlawful any legal proceedings brought by or against the Company, which may be continued or commenced by or against its new name.
  • If the name is misleading or incomprehensible, the Registrar may direct the company to change it.
  • The company must comply with the direction within one month from the date of issuance of that direction or as the Registrar may permit.
  • A company that does not adhere to the directives of this regulation is considered to be in breach.

 

Establishing an offshore company in Dubai – simple steps to achieve your dreams of investing in Dubai and establishing an offshore company. More than ten years of experience in dealing with all types of companies. Whatever type of activity you want to work in in Dubai, we will provide you with everything required to obtain All the necessary approvals and licenses to start this activity without any effort or hassle. Just contact us and get a free consultation with all the necessary details and papers. Determine the economic activity of the facility.

Determining the activity is the first step in the process of issuing a commercial license. Through the activity, the parties associated with this activity and the legal forms permitted for the activity are determined. There are more than 2,100 economic activities available in the Emirate of Dubai, and these activities are divided into different groups: commercial activities, industrial activities, professional activities and tourism activities. The type of license is related to the type of activity. If the activity of the license is professional, then the type of license is (professional), and if the license contains more than one type of activity, then we take the largest activity, and the industrial activity is considered the largest, then commercial, and then professional.

 

Industrial, commercial and professional activities can be combined provided that the activities are homogeneous or a permit is issued for the activity to be added. Example: If commercial and professional activities are combined in one license, then the type of license is commercial because the commercial activity is the largest activity (this does not apply to tourism activities).

 

Conditions for establishing an offshore company in Jebel Ali

A free zone enterprise is an organization formed and registered in a free zone and subject to the regulations of the zone only. The capital of the Free Zone Corporation shall not be less than approximately one million Saudi riyals. The company’s financial commitment is limited to its paid-up capital. The obligation to establish a free zone enterprise is considered by only one shareholder. The Free Zone Corporation is an independent legal entity.

If you want to form a free zone enterprise from companies or organizations, fill out an application and submit it to the management of the leading free zone.

 

Why should you invest in the UAE?

The United Arab Emirates is one of the most important regions to start an offshore investment as more than half of its population is filled with foreigners. Not only is there an abundance of resources, but there is also a generally good business climate that arises from the stability in the political atmosphere of the country.

 

The UAE also works to provide a rich investment environment at the regional and international levels, and according to the World Bank’s Doing Business report for 2019, the UAE topped the Arab countries in the ease of doing business, and ranked 11th globally.

 

Licenses

The cost of issuing a regular business license is 10,000 dirhams, in addition to other fees such as registration fees, virtual office or rent, professional fees, annual renewal fees, etc. Dubai South authorities also offer offers in lump sums depending on the needs of your business.

 

5 types of licenses can be obtained in the Dubai South Free Zone

  • Industrial license for light industrial activities.
  • Logistics license: issued only in the logistics area, to carry out logistics services.
  • Trading and general trade license: for import, export, distribution and storage of products specified in the license, and selling products within the UAE market through a local distributor.
  • Service License: For services specified in the license within the Dubai South Free Zone and other places in the United Arab Emirates.
  • Education License: This type of license is used for educational, social, training, and educational consulting services.

 

Free zones in the United Arab Emirates

These free zones (also known as free trade zones) are designed in a way to support and promote global trading companies; This is done by providing 100% ownership to foreign investors, and making administrative procedures very easy. Once you establish and operate your company in the UAE, you – as the owner of the company – can apply for a residence visa in the UAE and appoint employee(s) as well. You can also submit applications for residence visas for those you refer, such as your family members.

 

The UAE has more than 50 free zones covering all major commercial sectors. Whether your company’s sector is industrial, commercial, consulting, educational, health, technology, or other, the free zones in the UAE are considered ideal locations for establishing an offshore company. Dubai is considered the business capital of the UAE, and includes free zones that were specifically established to serve a wide range of commercial sectors. Seeking to follow Dubai’s vision, other emirates have also developed their own free zones, offering flexible prices to compete in the UAE market.

 

These free zones for limited liability companies must provide a flexible structure for companies and individuals alike, and provide a very easy plan for establishing and operating companies within just a few days, as this process can be completed remotely, and foreign investors are not required to come to the UAE in person to establish. Offshore company.

 

Launching companies in Dubai has become faster, easier and larger than ever before, in line with the vision of the Dubai Department of Economic Development to help company owners and businessmen launch and expand their businesses without the need for lengthy processes and procedures.

There are also two entities in Dubai for licensing companies: the Department of Economic Development, which is the only destination for registering establishments and companies within Dubai on the one hand, and more than 20 free zones on the other hand. Both entities within Dubai and in the free zones provide different benefits to owners of economic establishments according to the type of economic establishment and its activities. .

 

When an investor wishes to establish an offshore economic facility (institution or company) in the Emirate of Dubai, you must register with the Department of Economic Development, which is responsible for registering and licensing institutions and companies in the Emirate of Dubai. If there are any inquiries at any stage of obtaining a commercial license, please Contact us so we can provide support and advice.

 

Establishing a company in the free zone

Establishing offshore companies in Dubai in the free zone at the lowest possible costs. We help you submit all the necessary documents to open a company in Dubai and clear all transactions related to establishing companies in Dubai with the utmost order and precision. Through us, you can also choose the best type of company that you would like to establish in the Emirates. United Arab Emirates with identifying the ideal location and many facilities that help the success of your organization or company in Dubai.

Contact us and do not waste your time and effort searching for the requirements for establishing a company in Dubai. We provide you with the citizen services agent necessary to establish a company in Dubai. We also have many options for rental offices at competitive prices and in the best vital areas that stimulate trade in Dubai. We also provide you with everything you need. To obtain all necessary approvals for a commercial or administrative license.

 

Establishing an offshore company in Dubai

Simple steps to achieve one of your dreams of investing in Dubai and establishing an offshore company. More than ten years of experience in dealing with all types of companies. Whatever type of activity you want to work in in Dubai, we will provide you with everything required to obtain all the necessary approvals and licenses to start. This activity is done without any effort or hassle. Just contact us and get a free consultation with all the necessary details and papers.

 

Establishing a business in Dubai

When establishing a business in Dubai, one of the most important steps in developing a workable business plan is knowing the initial costs of establishing a company. Dubai’s tax-free advantage is an attractive factor for many entrepreneurs, but it is important to take into consideration the fees required to issue a new business license. The Department of Economic Development’s website offers a useful tool that allows prospective business owners to estimate the fees required to obtain licenses for their businesses.

 

If you are planning to start a company in one of the free zones in Dubai, you should keep in mind that each free zone has different steps and fees for incorporation. Many free zones also require that the company owner have a minimum amount of capital if he is establishing a company or project in the free zone, as opposed to simply opening a new branch of an existing company. Other costs of conducting business in Dubai or in the free zone include the costs of sponsoring employees and providing them with the necessary visas and papers to allow them to reside in the country.

 

Among the things that commercial companies must take into account are the future costs of importing goods into the country. Dubai Customs has clear guidelines regarding the types of goods that can be brought in and the costs of importing them. If the company intends to carry out commercial activity in the Gulf Cooperation Council countries only, customs duties will be lower thanks to the laws of the common market of the Gulf Cooperation Council countries, which promote trade cooperation and facilitate its practice between citizens of the Gulf Cooperation Council countries.

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