Offshore Company Formation in UAE
March 10, 2021
There are a multitude of company formation options to choose from in UAE. These include: the mainland, the free zone, and the offshore. All of which offer their own perks; some that are common and some which are specific to their particular zone.
What is an offshore company?
An offshore company is a business entity that operates from outside the country of its official registration or the location of its owners and stakeholders. The purpose of offshore company formation is a reduction in taxes and maximization of profits. The UAE government has allocated the Jebel Ali, Ras Al Khaimah, and Ajman jurisdictions to business owners for Offshore Company Formation in Dubai /UAE. Offshore establishments have been well-supported by the government in the 2 jurisdictions in terms of liquidity, taxation and ownership laws.
Key advantages to go for Offshore Company Setup in UAE:
- Simple and quick set up: typically, 3-4 working days after document submission
- 100% full foreign ownership permitted
- Shares transferrable by a written contract or deed
- Shareholders’ liability limited to their capital share in the company
- Confidentiality of company beneficiaries’ names
- Subject to there being no suspicion of malicious or criminal activity
- Mostly exempt from corporate tax
- Businesses like tobacco and alcohol must pay municipal tax and duties
- No minimum share capital requirements either
- Flexibility to not have a physical office location with employees
- Can be represented by a law firm and accountant (subject to registrar approval)
- Lower operating costs typically
- Means for asset protection, international trading, tax planning, share acquisitions in other firms, real estate buying in the UAE (designated areas), trust funds, etc.
These benefits have attracted investors and multinational companies from around the globe.
Tax Implications for Offshore Company:
Opening a bank account for offshore Company Formation in UAE is completely tax-free. This means that there is no tax applied.
There are no UAE income tax applications, no capital gains on property or sales tax in the UAE. It is quite inexpensive with nil tax liability.
The 3 jurisdictions under which an offshore company setup in UAE can take place:
- JAFZA Offshore (Jebel Ali Free Zone)
- RAK ICC (Ras Al Khaimah)
- Ajman Offshore
All three are completely tax-free jurisdictions with no income tax or corporate tax implications and permit 100% foreign ownership.
1-JAFZA Offshore (Jebel Ali Free Zone Authority):
In 2003, the Jebel Ali Free Zone Authority (JAFZA) in conjunction with the Dubai Government introduced Offshore Company under the Jebel Ali Free Zone Offshore Companies Regulations 2003. JAFZA is an extremely popular jurisdiction with companies for offshore company registration in Dubai/ UAE.
2-RAK ICC (Ras Al Khaimah):
RAK International Corporate Centre (RAK ICC) is a corporate registry operating in Ras Al Khaimah, UAE. RAK International Corporate Centre is responsible for the registration and incorporation of international business companies to whom they provide a suite of registry services related to their business activity. RAK International Corporate Centre is a modern, world-class company registry operating in full compliance with international standards and best practices in the international business company formation domain.
3-Ajman (AFZ) Offshore:
Ajman Offshore Zone (AFZ) established in 1988, has a lot of entrepreneurs carrying out Offshore Business Formation in UAE as they prefer to develop their infrastructure in Ajman. The strategic geographical location of AFZ is one of its key advantages due to its close proximity to the international airport.
How MBG helps in Offshore Company Setup in UAE:
At MBG, Our Business Experts you set up your offshore company in the UAE with our industry experience, expertise, and dedication. Our consultants are well-versed in all offshore licensing procedures and formalities. We compile and submit all the necessary documents. Our services cover the entire company formation process. We help our clients protect their assets and limit their liabilities.
MBG’s Offshore Company Setup Services include:
- Offshore Company Formation in UAE
- Sponsorship Services
- PRO Services
- Liquidation Services
We don’t just help you from the initial stages of Offshore Company Formation in Dubai, but also guide you post business set up on how to take it forward and providing you with everything you need.
Our Value Added Services Post Offshore Business Setup in UAE include:
- Strategy and Transformation
- Mergers & Acquisitions
- Technology & Legal advisory
- Unified In-Country Value (ICV)
MBG is the one stop solution for all your business needs, with expertise and experience in setting up your business in all the three zones that UAE offers.
All the above services for Offshore Company Formation in UAE are customizable according to the specific needs of your business. What give us an edge above the rest are the additional complementary services that we offer post- Offshore Business Setup in Dubai/UAE.
We are there for you throughout company formation in UAE until it is in its operational stage. With every business setup needs being taken care of; you can focus on your business, while our Business Experts take charge of all the procedural requirements, documentation and everything else in between.
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You can contact us for any query related to Company Formation in Dubai Free Zone at:
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