Dubai has emerged as one of the most profitable and conducive places to set up a business. You would just need to find Dubai offshore company formation services and everything would be smooth. Of course, it helps to have a fair idea of how things work and that is exactly what this article will explain to you. It should be evident by the end of this article that doing business in Dubai is a wise decision.
Offshore Company Formation Services
The easiest way to go about setting up an offshore company would be to find Dubai offshore company formation services. These have expert knowledge about the business terrain in the UAE and would recommend the best jurisdiction for you to set up a company in your particular industry. Some of the services they will offer include:
- General advice on how and where to set up the business.
- Information about paperwork needed to carry start up a business.
- Tax information, especially exemptions, and how to minimize the tax burden.
- Processing the paperwork and securing different authorizations.
- Basically, they are your partner with expert knowledge about offshore business in Dubai.
Difference Between Free zone Companies and Offshore Companies
The two terms are commonly confused and used interchangeably, however they are different. An offshore company may be set up in a free zone and enjoy many exemptions that a free zone company enjoys but they do not conduct their business within the United Arab Emirates. They can have bank accounts in Dubai, assets as well as real estate in particular areas. These companies are more of holding corporations for organizations that have operations outside the UAE.
Free zone companies are usually branches of a main company set up within a designated area known as a free zone. The company can operate within the UAE but with certain restrictions.
Why Form a Dubai Offshore Company
- It lessens your tax burden especially during international trade since offshore companies are exempted from paying corporate tax.
- Dubai is one of the most favorable places to do business
- Dubai offers exemption from annual accounting and other tax obligations.
- You can easily open up a corporate bank account in Dubai.
- Details of shareholders and directors are kept private with no public records.
- You can repatriate all your funds.
- Ownership can be 100% foreign.
How to Setup an Offshore Company in Dubai
UAE has made it amazingly simple to form an offshore company in Dubai. Not only are the tax exemptions an incentive to most entrepreneurs, the quick registration plays a part as well. It is even much easier if you have a company handling this process for you. These are the steps involved:
Step 1: You need to choose a name for the company. This name should reflect the activities you will be engaged in but should not be similar to a company already registered.
Step 2: Complete the registration forms and provide supporting documents for all the shareholders in the company.
Step 3: Submit the application along with supporting documents to the relevant authorities who will review and approve the application if it meets the criteria.
Step 4: Open up a bank account for your new offshore company in Dubai.
Supporting Documents Requires
- A resolution by the board along with the Memorandum of Association.
- A list of shareholders and directors that shows the hierarchy.
- Attestation of all shareholders and directors with Certificate of the parent company.
If the company is an Individual company, then these would be the requirements:
- Copy of the owner’s passport duly certified.
- Proof of residence.
- Personal details of the owner.
- Name of the company to be registered.
- Activities the company intends to undertake.
- Bank reference documents
You can have the company helping you with the registration confirm that you have provided all the necessary documents for registration. After all, they would know if there is a new requirement.
What Type of Company Benefits From Offshore Formation?
There is no particular industry that benefits from offshore holdings although there are some that seem to have more advantages than the rest. These include:
- Forex traders
- International trading companies
- Professional service providers
- Investment and savings companies
- IT companies
The list is long, but in most cases, if you operate a business outside your country of residence, you may benefit from setting up an offshore company in Dubai. If the benefits of formation of such a company appeal to you, then you can consider the option.
Formation of offshore companies help entrepreneurs legally reduce the cost of doing international business. Dubai offers cheap setup with great incentives. You just need to find a trusted partner to hold your hand through the process. Service providers have local knowledge about this process and they can get you set up in a few weeks or less.
By Samuel Otha
who is a Freelancer blogger whose ideas on writing content is all about finance and investment.