Offshore Company in the UAE: A Decision You Will Not Regret

By Ripu Daman Gulati On Oct 6, 2023

The UAE is a bustling international business hub that has done a marvelous job of becoming a real draw for entrepreneurs across the globe. Excellent infrastructure, straightforward company registration process, helpful officials, low taxes, and numerous free economic zones – the country has it all to keep potential business owners interested. The UAE offers better conditions than many European countries, and they continue polishing their laws to make the country’s business environment even more favorable.

Any major undertaking begins with collecting information: you will not do much if you are not competent enough or you cannot rely on the assistance of competent people. We would like to invite you to our portal called International Wealth where you will find a detailed guide on foreign company establishment. Take all the necessary steps to open an offshore company with our help!

If you want to rely on the help of a qualified international business expert, we have a team of professionals on our portal who will help you with quick and hassle-free company registration. You can take advantage of our free services: for example, we will not charge anything for helping you choose a suitable jurisdiction for your business. And if you want to delegate the administrative procedures to us and simply receive your company on a turnkey basis with minimum effort involved, we can do it for you as well – at a reasonable fee. Book an initial free session today!

The UAE in Brief

There are seven emirates in the UAE, but Dubai has definitely won the entrepreneurs’ and investors’ hearts. They flock here to set up companies, buy real estate, obtain a residence visa, or invest in promising projects to receive passive income.
Dubai is the most popular trading/financial center not only in the UAE but also in the whole Middle East! You can choose one of the numerous free economic zones that exist here to establish your company.
There will be no language barrier: English is actively spoken in the business environment (though the country’s official language is Arabic).
Local and international businesses can benefit from low taxes.
June 1, 2023, was the day when major changes occurred in the UAE’s business world as the 9% corporate tax rate was introduced after a long period of non-existence. It will be applied on two conditions: the company derives its profits within the UAE and its annual profit exceeds 375,000 dirhams.
If you are a non-resident who establishes a business in the UAE, you qualify for a residence visa (which is in fact a long-term residence permit that allows you to legally stay in the UAE). However, if you form an offshore company, you will not be eligible.
There are a lot of free trade zones in the UAE that are dedicated to a particular type of companies. They are very convenient as you can benefit from top-notch infrastructure, really helpful personnel that will come to the rescue in case of any problem, and beneficial tax rates.
A foreigner from any country whatsoever may own 100% of business in the UAE.
There is no currency control, so the movement of currency is free.
You will not have to pay personal, luxury, or inheritance income.

Dubai Offshore Company: Main Benefits

Though the UAE offers favorable tax conditions similar to those offered by tropical offshore islands, it has never been considered a tax haven. It means that your company will have a higher reputation for your business partners.

Let’s look at the main advantages of starting your company in Dubai:

You will not need to hire a local director like in many other jurisdictions as non-residents can wholly own the company.
The UAE has moved away from all kinds of bad practices (like corruption, nepotism, bribery, or the creation of artificial obstacles for business owners) towards good practices like helpfulness and transparency, which considerably influences the ease of doing business.
You will not pay any taxes on the income of your offshore company in the UAE (but you may be liable for taxes back home).
You will face no currency restrictions, so your business wheels will turn faster.
Dubai’s large ports and airports facilitate international trade and relations with foreign business partners.
You will find everything you need for business in the UAE’s free trade zones: warehouse facilities, office buildings, residential complexes, and more.
You can run your company from home and you are under no obligation to create jobs for the locals.
An offshore company in Dubai is a very convenient tool if you want to expand your business or optimize taxes.
If you are worried about confidentiality matters, you will be relieved to find out that the information about offshore company founders is not disclosed to the public (except upon request from law enforcement or tax authorities).
You will not need to submit any financial reports to the UAE authorities – however, you should still keep them.

Offshore Company Registration in Dubai: Peculiarities

Let’s take a look at the requirements you will have to fulfill to set up an offshore company in the UAE:

You will need one founder and one director who can be nationals of any country.
Ensure you can pay the authorized capital required by each emirate individually.
Suggest a name for your company (it should be in English, and it must be unique to be approved by the registrar).
Find a local agent who will help you incorporate your company.
Choose a free economic zone that will match your company’s activity.
Prepare the documents to be submitted for company incorporation.
Make up the company’s Articles of Association.
Set up a corporate bank account (in the UAE or any other country).
Obtain your documents and get down to business!

Conclusion

You can follow the above link to read about the types of companies you can form in the UAE. If something is unclear, please do not hesitate to book a session or ask questions using a live chat. We can help you with any aspect of business registration or start a company for you on a turnkey basis. If you doubt that the UAE is a perfect jurisdiction for you, book a session to get a shortlist of suitable destinations for your business for free!