Documents Required for Offshore Company Registration in Dubai

Offshore Company Registration in Dubai is a potential investment opportunity for a lot of foreign investors mainly because of the tax-free nature and the robust offshore policies of the UAE. Moreover, it facilitates international trade and even allows companies to hold shares in other projects, both in the mainland and free zone. And that’s why many investors from all over the world choose offshore jurisdictions for their business launches. 

Nonetheless, this guide will share some insights on the relevant points that need to be considered while beginning an offshore company in Dubai, UAE. 

Offshore company registration in Dubai

Offshore companies are basically known as non-resident companies or paper company because it allows foreign entrepreneurs to establish their company without any administrative obligations. This also includes the Certificate of Incorporation which is issued to the offshore companies instead of a business license. It is simply a wholly owned LLC which requires no annual auditing and is exempted from all kinds of taxes. It can be used for foreign trading, holding companies, owning properties, registering company assets, etc. On the whole, offshore company is the most ideal, tax-efficient as well as a cost-effective form of business in Dubai. 

So, basically, there are three major offshore jurisdictions in Dubai, UAE – 

• Ras Al Khaimah(RAK) Offshore
• Jebel Ali Free Zone Authority(JAFZA) Offshore 
• Ajman Offshore 

Advantages of offshore company registration in Dubai 

The benefits offered in Dubai offshore help businesses run more effectively and securely. An offshore business owner can get the following benefits through Dubai offshore company formation: 

• International trade

Dubai offshore company registration facilitates easy international trade as well as carrying out global transactions without any difficulties. 

• Deliver professional services

Any individual investor or company can open a global consultancy firm or deliver management services through Dubai offshore company. Moreover, it also permits them to work remotely from anywhere in the world. 

• Own real estate

Offshore company registration in the UAE allows investors to purchase property in certain regions specified by the Offshore Jurisdiction. 

• Invest in other companies

Owners of Dubai offshore businesses can invest in multiple projects through their company, that too without having to reveal their details in the public domain.  

• Asset registration

All sorts of intangible corporate assets such as copyrights, trademarks, and patents can be registered by the offshore company. 

• Holding companies

An offshore company in Dubai can act as a holding company. In other words, the entrepreneurs can combine all their establishments under one holding company. 

• Flexibility

Unlike other business formations in the UAE, offshore companies have the flexibility to work remotely and not have a physical office space. Besides, the offshore company owners can also avail full ownership of their business. 

• Privacy and confidentiality

The Dubai offshore jurisdiction assures complete privacy ad confidentiality to offshore companies. They make sure that the details of company owners and the business dealings are not disclosed during the company formation process. 

• Taxation benefits

The United Arab Emirates has a lenient tax regime. This thus attracts foreign investors to establish their companies in the Arab land. 

• Multiple corporate bank accounts

When you go for offshore company registration in Dubai, you also get the advantage of operating multi-currency bank accounts. You get to choose banks that simplify international business transactions and guarantee financial security. 

The offshore company formation specialist at Shuraa can help you find the best banking services provider in UAE as well as establish the required corporate accounts. 

The other advantages may include the following: 

• Zero custom charges on import and export 
• Full repatriation benefits 
• No foreign currency regulations
• Greater scope of business growth and expansion 
• Minimum capital prerequisite is not compulsory 
• Quick and simple to set up 
• Globally recognized jurisdiction

You also read: A Guide to Setting up a Business in UAE

Step-by-step guide for Dubai offshore company formation

The process of offshore company registration in Dubai is hassle-free. However, you need to follow certain steps to accomplish the task. 

• Select a company name

As soon as you decide which industry you wish to settle for and which business activity you want to undertake, the next step is to find a suitable company name. However, make sure that the name relates to the nature of your business and also abides by the UAE’s naming conventions. A few of these naming conventions are as follows: 

• Verify the name with the Registrar for any duplication as well as availability.
• Make sure to include ‘Ltd.’ or ‘Incorporated’ at the end of the name. 
• Since insurance and finance are forbidden sectors for establishment in Dubai offshore, avoid using words relevant to these sectors in the name. For example, insurance, bank, fund, trust, royal, finance, cooperative, municipal, emirate, mutual fund, etc.

• Fill up the application form

You have chosen industry for your business and found an apt company name, it’s time to apply for offshore company registration in Dubai. According to the UAE company guidelines, offshore jurisdiction does not issue licenses to the businesses, rather they issue a certificate of incorporation as proof of validation. And therefore, the business owners must make an application for registering their respective venture in offshore Dubai. 

• Prepare and submit the relevant documents

When you are applying for your offshore company registration, you also need to attach certain valid documents along with the application form and submit them to the concerned authorities. The authorities will later review these documents and issue approvals and certificates accordingly. 

• Draft the MOA and AOA

Once you get approval from the authorities for your offshore company formation, the next step is to prepare the Memorandum of Association(MOA) and the Articles of Association(AOA). These documents will be further reviewed and approved by the authorities accordingly. 

• Start an offshore bank account

The final step of the Dubai offshore company formation process is to open a corporate bank account in order to carry out business transactions effortlessly. Additionally, the offshore authorities help business owners to find the best banks in the region and also start bank accounts in various locations across UAE. 

Documents needed for offshore company registration in Dubai 

Dubai offshore company formation requires the following documents: 

• Passport copy of the company shareholder
• Address proof, such as utility bill 
• Original reference letter from the bank 
• Updated curriculum vitae of the shareholder 
• Name suggestions for the company 
• List of chosen activities\
• Details of the beneficiaries of the company
• Trade license or incorporation certificate of the existing business, if any 
• Certificate of incumbency 
• MOA of the parent company 
• Shareholder’s resolution
• Certificate of good standing 

Additional aspects of offshore business registration in Dubai 

There are certain necessary aspects concerning offshore companies in Dubai. These are as follows- 

• The directors of the offshore companies can be non-UAE residents, however, the manager has to be a UAE citizen.
• Carrying out business in the banking, insurance, and real estate sectors are strictly prohibited. 
• No compulsory annual governmental audit. 
• UAE offshore doesn’t permit residence visas. 
• Offshore companies cannot carry out business in Dubai Mainland. 
• Right to hold shares in other companies. 

Summing up

The above article almost covers all the necessary information and procedures required for offshore company registration in Dubai. So, all you need to do is follow every step carefully and incorporate your business in the UAE without any hassle. However, if you find this process too complicated and unattainable, you can always seek professional assistance from the business formation specialists of Shuraa. Shuraa Business Setup can help you establish your business in Dubai offshore as well as keep you updated with the latest business trends and policies of the UAE. 

So, feel free to reach us at info@shuraa.com or simply give us a call at +971 44081900.