Overview of Company Registration in UAE Offshore Jurisdictions
- Offshore companies registered in UAE are allowed to do international trading and services business outside of UAE.
- Offshore companies registered in UAE are 100% income tax free companies. UAE has double tax treaty with more than 90 countries.
- There are three offshore authorities allowing registration of offshore companies in UAE. These are namely Jebel Ali offshore Authority (JAFZA offshore), Ras Al Khaimah International Corporate Center (RAK offshore) and Ajman Offshore Authority.
- Offshore companies are also allowed to own real estate and other assets inside or outside of UAE.
- Offshore companies of UAE are also allowed to own shares in other companies as a holding company. It is also allowed to own shares in mainland LLC (Limited liability Company). Majority of big businesses having operational companies in UAE are owning their businesses through offshore companies. Offshore company formation in UAE is fairly common.
- Offshore companies formed in UAE are also allowed to own trademarks and intellectual properties.
- An offshore company in UAE jurisdictions can be 100% owned by expat investors.
- It is a limited liability company in legal nature.
- This company can only be registered with authority through its registered agent (Bab Alnahda Project Development & Consultant is a registered agent)
- Registered agent’s address is considered as a registered address for an offshore company.
- Offshore company does not allow having residence visa for share holders or employees.
- Offshore companies registered in UAE should not be misunderstood as free zone companies. Free zone companies are considered on shore companies.
- Since 2019 onwards, all offshore companies registered in UAE are subject to fulfilling ESR (Economic Substance Regulation) by Ministry of Economy.
- Offshore company does not fall under VAT levied by Government.
Key Benefits of Forming Offshore Company in United Arab Emirates
- Asset protection
- Succession planning
- Privacy and Anonymity
- Low operational cost
- Operational bank account in multi currency
- Invoicing internationally for trading and services businesses
Popular Business Activities in an Offshore Company
- Property holding
- Asset or share holding
- Investment holding in form of stocks, precious metals and funds
- International trading
- International consultancy services
- Holding IP rights
Minimum Legal Requirements for an Offshore Company Formation in UAE
- Minimum one share holder is required.
- Corporate company can also be a share holder in an offshore company. However all attested documents are required for a foreign corporate company.
- Having director is must in an offshore company. Director names are not available in public domain.
- Appointment of secretary is must from certain offshore authorities in UAE.
- Share holders names are not available on public domain.
Documents Required to Register an Offshore Company in United arab Emirates (UAE)
- Passport copy
- Utility bill clearly showing name and address not older than 90 days
- Bank reference letter from any recognized bank or bank statement
- CV for the share holder
- Business plan
- Duly filled in application form
- Any other compliance process adopted by an authority or registered agent
Special Note
- An offshore company registered in United Arab Emirates is not allowed to conduct any business inside UAE.
- An offshore company registered in United Arab Emirates is allowed to own asset inside United Arab Emirates.