Setting Up a Dubai Offshore Company
A Dubai Offshore Company, is an excellent option if you want to operate outside the UAE, while taking advantage of its favorable tax regime.
In recent times, the UAE has established itself as one of the world’s premiere locations for the establishment of an offshore company. Besides enjoying from a range of cosmopolitan amenities and the high end lifestyle afforded to residents in this region, investors and their companies can also benefit from the vast array of advantages offered by the offshore company setup in the country. Whether it’s in Dubai, Ajman or Ras Al Khaimah (RAK), you will not regret running your international offshore company, from this corner of the globe.
Keep in mind that offshore companies in the UAE are generally used to purchase real estate in the region or hold stakes in other companies. UAE offshore companies cannot conduct business within the UAE.
Here are some of the activities allowed to a UAE offshore company:
- International advisory and expert consulting services
- Online advertising activities
- Buying, holding, or selling property
- International trade
- Brokerage activities and trading
- Investments and joint speculations
- Owning property
- Brokerage activities
- Ship registration and management
Why a Dubai Offshore Company Could Be Ideal for You
There is a myriad of advantages available to investors when setting up an offshore company in the UAE.
- Privacy Protected: Offshore companies in the UAE do not have to submit details of their financial statements or shareholders to the regulatory authorities. Only when there’s a suspicion or fear that the offshore company is being used to finance criminal or terrorist activities will information be passed on to the government or relevant regulators.
- Easy to Establish and Manage: Setting up your own offshore company is fast, inexpensive, and simple to navigate. Since there are little requirements and no need for establishing a physical presence (i.e., office) in the region, these types of companies can be opened in under a week. Additionally, given the lack of reporting requirements, administration costs are negligible when compared to those for other type of structures. Your offshore company in Dubai may open a bank account locally and make the most of the UAE’s world-renowned banking sector.
- Tax Efficient: Considering the UAE’s 0% tax rate on income, plus the exemptions available on a slew of other levies, the UAE is perfect for those looking to lower their tax burden.
- Assets Protected: Given the high levels of confidentiality and privacy, a UAE offshore company is perfect if you’re looking to protect your assets and wealth from prying or meddlesome eyes. Here you can safeguard real estate, intellectual property, stocks, and securities that may be of interest to your business rivals, angry spouse, or any other lawsuit thrown your way.
- 100% Yours: With a UAE offshore company, there’s no need for you to split ownership with anyone, even if you are a foreign national. The company can be 100% yours, and you can run it as you see fit.
Introducing RAK ICC
Of all the UAE’s offshore companies, one shines bright: Ras Al Khaimah, or RAK.
Located in the north of the UAE and just a 45-minute drive from Dubai, RAK has developed to be one of the UAE’s most important and prestigious financial centers for both offshore and free zone companies thanks to its low setup costs and ample benefits.
As with most other UAE offshore companies, setting up your own structure in RAK comes loaded with benefits:
- Setup can be completed in under four days.
- No corporate or income tax or VAT levied.
- Company can own real estate and intellectual property rights and act as a holding company.
- Only one shareholder required, and they do not need to obtain a UAE resident visa.
- Ability to repatriate profits and capital gains.
- No need for a physical office or a minimum number of employees.
- 100% foreign ownership is permitted.
- Lax reporting requirements that help preserve your privacy and confidentiality.
- Ability to open a top-notch bank account including online banking and corporate credit card with no foreign currency restrictions.
The Tax Benefits of an Offshore UAE Company
If we look more specifically at the tax advantages of setting up an offshore UAE company, here’s what is brought to the table, particularly when discussing RAK.
RAK, for instance, maintains a large Double Tax Treaty Network, which allows company shareholders to avoid paying taxes in their home countries.
Similarly, RAK has a zero percent (0%) tax policy for offshore companies set up there. This includes no income, corporate, withholding, social security, and value-added taxes.
Additionally, since there are not trade barrier quotas or foreign currency restrictions, you are allowed to repatriate your profits at any time you wish.
How We Can Help Register Your UAE Offshore Company
As mentioned above, it is easy to set up an offshore company in the UAE, and we can easily help you get every single step right and to your demanding standards.
Here’s what we need to do:
- Pick a Name: Your company’s name must follow certain rules established by the regulatory authorities. First, it cannot be crass or blasphemous. Second, it cannot incorporate a series of words such as insurance, bank, finance, trust, royal, and Emirate, to list a few. Lastly, it must be followed by Ltd., or Incorporated.
- Apply: We must submit an application to the relevant authorities, including IDs for the shareholders and documents explaining the nature of the business to be carried out. We will help you gather these items and make sure they are in line with what’s requested.
- Draft a Memorandum of Association: We will draft a charter for your company detailing its operations, the duties and responsibilities of its directors and staff members, its governing principles, etc. Of course, we can help you polish your thoughts.
- Set Up Your Offshore Banking: Once steps 2 and 3 are completed and your UAE offshore company is registered, it’s time to open a local corporate bank account, a process that can take up to eight weeks to be processed and finalized.
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