Guide to Offshore Company Setup in Dubai,UAE

Setting up an offshore company in Dubai, UAE, has become an increasingly attractive option for businesses and entrepreneurs worldwide. The allure of Dubai's business-friendly environment, tax benefits, and strategic location makes it an ideal destination for establishing an offshore entity. This comprehensive guide will walk you through the steps, benefits, and costs associated with offshore company setup in Dubai, ensuring you have all the information you need to make an informed decision.

What is an Offshore Company?

An offshore company is a legal entity incorporated outside the jurisdiction where its principal investors reside. In Dubai, offshore companies are regulated entities that can conduct business internationally, but not within the UAE itself. This setup is particularly beneficial for businesses looking to expand their global footprint while taking advantage of the tax benefits and privacy offered by the offshore structure.

Steps For Offshore Company Set Up in Dubai:

1. Choose the Right Jurisdiction: Dubai offers several free zones that facilitate offshore company setup. Popular jurisdictions include Jebel Ali Free Zone (JAFZA) and Ras Al Khaimah International Corporate Centre (RAK ICC). Each jurisdiction has its own set of regulations, benefits, and costs, so it's crucial to select one that aligns with your business objectives.

2. Engage a Registered Agent: Offshore companies in Dubai must be set up through a registered agent like Plan My Firm. These agents are licensed professionals who will handle the paperwork, liaise with authorities, and ensure compliance with local laws.

3. Select a Company Name: Choose a unique name for your offshore company that complies with the naming conventions of the selected jurisdiction. The name must not be similar to existing entities and should reflect the nature of your business.

4. Prepare Documentation: Compile the necessary documents, including passport copies of shareholders and directors, proof of address, and a business plan. These documents need to be notarized and attested.

5. Draft Memorandum and Articles of Association: These documents outline the company's structure, objectives, and operational guidelines. Registered business consultants will assist in drafting these documents in accordance with local laws.

6. Submit Application and Pay Fees: Submit the application along with the required documents to the relevant authority. Pay the registration and licensing fees as stipulated by the jurisdiction.

7. Open a Bank Account: Once your company is registered, you'll need to open a corporate bank account. This process may require additional documentation and compliance with the bank's requirements.

8. Receive Incorporation Certificate: Upon approval, you'll receive the Certificate of Incorporation, which officially establishes your offshore company in Dubai.

Benefits of Setting Up an Offshore Company in Dubai:

1. Tax Efficiency: One of the most significant advantages of offshore company setup in Dubai is the favorable tax regime. Offshore companies are not subject to corporate taxes, income taxes, or VAT, which can result in substantial savings.

2. Asset Protection: Offshore companies offer a high level of confidentiality and asset protection. Shareholder and director information is not publicly disclosed, providing an additional layer of privacy.

3. Ease of Doing Business: Dubai's business-friendly environment, modern infrastructure, and strategic location make it an ideal hub for international trade. The process of setting up an offshore company is streamlined and efficient.

4. No Exchange Controls: Offshore companies in Dubai can freely repatriate capital and profits without restrictions. This flexibility is particularly advantageous for businesses engaged in global operations.

5. Full Foreign Ownership: Offshore companies can be wholly owned by foreign nationals, allowing entrepreneurs to retain complete control over their business.

6. Limited Liability: The liability of shareholders is limited to their share capital, which protects personal assets from business liabilities.

7. Access to International Markets: Dubai's strategic location between Europe, Asia, and Africa provides easy access to major international markets, facilitating global business operations.

8. Reputation and Credibility: Dubai is renowned for its stable economy, robust regulatory framework, and business-friendly policies. An offshore company in Dubai can enhance your business's reputation and credibility on the global stage.

Setting Up an Offshore Company in Dubai Cost Involves: 

The costs associated with offshore company setup in Dubai vary depending on the chosen jurisdiction and the services required. Here is a costs:

1. Registration Fees: The initial registration fees can range from USD 3,000 to USD 10,000, depending on the jurisdiction and the complexity of the setup.

2. Annual Renewal Fees: Offshore companies are required to renew their licenses annually. The renewal fees are typically lower than the initial registration fees, ranging from USD 1,500 to USD 5,000.

3. Registered Agent Fees: Engaging a registered agent is mandatory, and their fees can range from USD 1,000 to USD 5,000 per year, depending on the services provided.

4. Documentation and Notarization Fees: The cost of preparing, notarizing, and attesting the required documents can range from USD 200 to USD 1000.

5. Bank Account Setup Fees: Opening a corporate bank account may incur additional fees, which can vary depending on the bank and the services required.

6. Office Rental (Optional): While offshore companies are not required to have a physical office in Dubai, some businesses may choose to rent office space for operational purposes. Office rental costs vary widely based on location and facilities.

7. Miscellaneous Costs: Additional costs may include legal fees, translation services, and other administrative expenses.

How Plan My Firm Can Help:

At Plan My Firm, we specializes in assisting clients with offshore company setup in Dubai, offering a comprehensive suite of services to ensure a smooth and efficient process. Here’s how we can help:

1. Consultation and Advisory: We provide expert advice on the most suitable jurisdiction for your offshore company based on your business objectives and requirements.As licensed professionals, we act as your registered agent, handling all necessary paperwork and liaising with local authorities on your behalf.

2. Documentation Preparation: We assist in preparing and notarizing all required documents, ensuring compliance with local regulations.

3. Trade Name Registration: We help you select and register a unique company name that adheres to the naming conventions of the chosen jurisdiction.

4. Memorandum and Articles of Association: Our legal team drafts the Memorandum and Articles of Association in accordance with local laws.

5. Application Submission: We submit the application and required documents to the relevant authorities, ensuring timely processing and approval.

6. Bank Account Setup: We assist in opening a corporate bank account, guiding you through the bank’s requirements and documentation process.

7. Ongoing Support: We provide ongoing support for annual renewals, compliance,residency visas and any other administrative needs.

Differences Between Jurisdictions:

When considering offshore company setup in Dubai, it’s important to understand the differences between various jurisdictions. Here’s a comparison of the two main offshore jurisdictions in Dubai:

1. Jebel Ali Free Zone (JAFZA):

• Reputation: JAFZA is one of the oldest and most reputable free zones in the UAE.
• Requirements: Requires a minimum of two shareholders and two directors.
• Regulations: Offers robust regulatory frameworks and compliance standards.
• Banking: Easier access to banking facilities due to its established reputation.
• Costs: Generally higher registration and renewal fees compared to RAK ICC.

1. Ras Al Khaimah International Corporate Centre (RAK ICC):

• Reputation: Known for its cost-effectiveness and flexibility.
• Requirements: Requires a minimum of one shareholder and one director.
• Regulations: Provides a more streamlined regulatory environment.
• Banking: May face more scrutiny from banks due to its relatively newer establishment.
• Costs: Lower registration and renewal fees compared to JAFZA.

Best Offshore Emirates to Start:

While Dubai is a prominent location for offshore company setup, other Emirates also offer attractive options. Here are the best Emirates to consider:

Dubai:

• Business Hub: Known as the commercial heart of the UAE with excellent infrastructure and connectivity.
• Reputation: Offers a high level of credibility and international recognition.
• Facilities: Home to numerous free zones and business parks.

Ras Al Khaimah:

• Cost-Effective: Offers lower setup and operational costs compared to Dubai.
• Flexibility: Provides a more flexible regulatory environment.
• Privacy: Known for strong privacy and confidentiality measures.

Ajman:

• Ease of Setup: Offers a straightforward and quick setup process.
• Cost-Effective: Lower setup and maintenance costs.
• Proximity: Close to Dubai, providing easy access to Dubai’s facilities and infrastructure.