What are offshore companies?

What are offshore companies in Dubai? Off shore companies are companies that are registered in accordance with the law of the country in which they carry out their commercial activity. This term is applied to companies that carry out their activities in countries other than their nationality, and investors seek to establish offshore companies in Dubai because of what the country offers. Of the advantages.

Establishing offshore companies in Dubai is a special type sought by all investors who have companies in their country and wish to establish other companies away from the parent company, due to the advantages provided by the government in the UAE to facilitate the procedures and papers necessary to start work, but there is a set of laws and regulations. What is necessary to establish this type of company, and this is what we will discuss in this article in the following lines.

Establishing offshore companies in Dubai

Establishing offshore companies in Dubai can be a good option for individuals and companies looking for benefits such as low taxes and financial secrecy. In Dubai, investors are able to establish their companies in free zones such as Jebel Ali, Hamriya, etc., as these zones provide advanced infrastructure and easy operating procedures. Incorporation in Dubai usually includes benefits such as no customs duties, 100% freedom of company ownership, and no restrictions on transferring profits or capital. If you are considering establishing an offshore company in Dubai, it is important that you consult a local legal advisor to understand all the laws and regulations relating to foreign companies, as well as to provide support in the incorporation procedures and required licenses.

Advantages of establishing offshore companies in Dubai

Establishing a company in Dubai has several advantages that make it an attractive option for international investors. These advantages include:

1. Financial Privacy: Dubai provides a safe financial environment and legislation that maintains the confidentiality of financial information of companies and shareholders.
2. Tax exemptions: Offshore companies in Dubai enjoy significant tax benefits, as Dubai does not impose taxes on profits or personal income, which contributes to significantly reducing operational costs.
3. Easy access to global markets: Dubai is located at a major intersection of global trade, making it easier for offshore companies to access the Middle East, North Africa and South Asia markets.
4. Advanced Infrastructure: Business districts in Dubai provide advanced infrastructure that includes modern office facilities, communications services, and transportation, which effectively supports businesses.
5. Flexible legal regulation: Dubai provides a regulatory environment that encourages business and supports economic development, with procedures for establishing and operating companies simple and effective.
6. Diversity of economic activities: Offshore companies in Dubai can operate in a wide range of sectors including trade, financial services, and technology, providing great opportunities for growth and expansion.

In short, setting up offshore companies in Dubai provides an ideal environment for international business thanks to tax benefits, financial privacy, and advanced infrastructure, making it a preferred destination for investors from all over the world.

Conditions for establishing offshore companies in Dubai

Establishing offshore companies in Dubai requires compliance with several conditions and procedures, the most important of which are:

1. Legal type of company: You must select the appropriate company type for your business needs, such as limited liability company (LLC), joint stock company, or sole proprietorship.
2. Licensing and permits: A license must be obtained from the relevant authorities in the free business zone or the competent official body, such as the Dubai Economic Services Authority (DED) or the Dubai Free Trade Zone Authority (Free Zone Authority).
3. Basic contribution and capital: The required basic contribution must be submitted and the capital required to establish the company must be determined, and this may vary depending on the type of company and the proposed activity.
4. Shareholders and Directors: Shareholders and directors must be appointed to the company, submitting the necessary documents to identify their identities and powers.
5. Commercial activity: The type and scope of commercial activity that the company will undertake must be determined, making sure that it is in line with local legislation.
6. Contracts and Agreements: Offshore companies may require the signing of contracts with customers or local partners, depending on the need and applicable laws.
7. Financial Reporting: Companies must submit annual financial reports and comply with local financial legislation, as needed.
8. Visas and Residencies: Companies may require visas and residencies for foreign directors and employees, based on need and type of incorporation.

These are some basic conditions, and the terms and procedures can vary depending on the legal type of company and the region in which you intend to establish the company. It is always important to consult a local legal advisor to ensure full compliance with local laws and regulations.

Licenses to establish offshore companies

Establishing offshore companies in Dubai requires obtaining appropriate commercial licenses , and these licenses vary according to the type of company and the location of its establishment (free zone or outside a free zone). Here are some types of business licenses that may be necessary to establish an offshore company in Dubai:

Commercial license from the Department of Economic Development (DED):

1. It is used for companies that wish to operate within Dubai outside the free zones.
2. Issued for a variety of business activities such as general trade and liberal professions.

Free Zone License:

1. Issued by a free zone authority such as Dubai Free Trade Zone (DFTZ), Jebel Ali or Hamriyah.
2. It allows companies to benefit from benefits such as low or no taxes, full foreign ownership, and ease of exporting and importing.

Electronic commerce license (e-commerce license):

1. It is used for companies that want to work in the field of e-commerce without needing a physical office in Dubai.
2. It allows companies to sell products and services online without the need for a specific free zone.

Professional Services License:

1. Issued to individuals who wish to provide professional services such as medicine, law, and engineering.
2. It often requires a professional qualification certificate and a license from the relevant authorities.
3. Each type of license comes with different requirements related to the business activity and geographic location of the company. It is important to consult with Itqan Company’s consultants regarding incorporation to ensure full compliance and transparency in incorporation procedures and obtaining the necessary commercial licenses.

Procedures for registering offshore companies

The procedures for registering offshore companies in Dubai include several basic steps that must be followed carefully. Procedures may vary slightly depending on the type of company and the region you choose, such as a free zone or a non-free zone. Here are the general steps to register an offshore company in Dubai:

1. Choosing a company type: Determine the appropriate legal type for your company, such as limited liability company (LLC), sole proprietorship, or joint stock company, based on your business needs and goals.
2. Choosing a location: Decide whether you want to establish your company in a free zone such as Jebel Ali or Hamriyah, or outside a free zone within Dubai in general.
3. Determine the business activity: Determine the scope of the business activity that your company will undertake, and ensure that it is in line with local regulations and laws.
4. Choosing a Company Name: Choose an appropriate name for your company, make sure it is not already used, and complies with local naming requirements.
5. Submitting an application: Submit a registration application to the relevant government entity, such as the Dubai Economic Development Authority (DED) if the company is outside a free zone, or the selected free zone authority if it is within a free zone.
6. Prepare documents: Prepare all documents required for registration, such as a copy of the passport, business plan, required agreements, and any professional certificates if necessary.
7. Payments and Fees: Pay the registration fees and any other required fees to the chosen entity.
8. Obtaining Approvals: After submitting your application, you may be required to obtain the required approvals from local or administrative authorities.
9. Issuance of the license: After meeting all conditions and requirements, the company license and permits necessary to start work will be issued.
10. Chamber of Commerce Registration (Optional): If you would like to become a member of your local Chamber of Commerce, you can apply to register as a member.

These steps are the basic procedures, and some steps can vary depending on the exact type of company and region you choose. It is always important to consult Etqan to ensure full compliance with local laws and regulations while registering your company in Dubai.

Documents required for offshore companies in Dubai

To establish companies in Dubai , the documents required usually vary depending on the type of company and the region you choose, whether it is inside a free zone or outside it. Here is a general list of documents that may be required:

1. A copy of the passport for shareholders and directors: These copies include the home page and visa pages, if any.
2. A recent photo of shareholders and directors: The photo is usually passport size.
3. Application form: contains details of the proposed company such as company name, type of activity, and shareholders.
4. Business plan: defines the company’s goals and expected scope of work.
5. Partners agreement or incorporation document: If there is more than one shareholder, local authorities can request a document detailing the financial and administrative details of the company.
6. Professional certificates for managers (if necessary): Local authorities can require professional qualification certificates for managers if the company’s activities require it, such as medicine or engineering.
7. Proof of legal address: A lease or title document is usually provided for the address where the company will be based.
8. No Objection Certificate (NOC): In some cases, you may need a NOC from the competent government authority or from your employer if you are an employee.
9. Bank Reference Letter: This certificate reflects the company’s reliability and financial ability.
10. Additional documents: Local authorities may request additional documents depending on their need and the type of proposed company.

This is a general list and the required documents may vary depending on the specific circumstances of each company and the region in which you intend to establish the company. It is important to consult with Itqan Company experts who specialize in incorporation to ensure that all required documents are submitted correctly and in a timely manner.

Costs of establishing an offshore company in the UAE

Establishing an offshore company in the UAE , whether inside or outside a free zone, includes several estimated costs that vary based on the type of company and its requirements. Here are some key points that may have costs:

1. Registration fees: Includes company registration and business license fees, and these fees vary depending on the type of company and the region you choose.
2. Rental costs: If you need an office or space for company business, you will need to pay rental costs or office use fees in the case of a free zone.
3. Legal and accounting consulting fees: to ensure compliance with local legislation and provide necessary advice in the incorporation process.
4. Lawyer fees: You may need to use the services of an attorney to arrange contracts and ensure compliance with local laws.
5. Administrative services fees: These fees include, for example, fees for document authentication and other administrative services that you may need.
6. License issuance fees: There may be additional fees for issuing a commercial license or a free zone license.
7. Attestations and attestations fees: If the company deals with international transactions or requires attestations of documents.
8. Banking fees: You may need a company bank account, account opening costs, and other banking services.

These are estimated overhead costs and may vary depending on the details of each case. It is best to consult an Itqan incorporation company to determine all potential costs and ensure compliance with all local procedures and regulations

In conclusion, this article about establishing an offshore company in the Emirates represents an important strategic step for many investors who seek to exploit the vibrant and encouraging commercial environment that Dubai and the Emirates in general provide. The UAE offers a business-friendly environment with modern legislation and flexibility that makes establishing companies relatively easy, whether inside or outside free zones. By providing a variety of company types such as joint-stock companies, limited liability companies, and others, it allows investors to choose appropriately for the type of activity and the financial and legal requirements of their project.

Frequently asked questions about establishing an offshore company in the UAE