All business owners want to work in the most supportive and profitable environment possible, and whatever the criteria you measure it, it’s not hard to claim that Dubai is that setting. This is especially true for the establishment of offshore companies. In addition to the many benefits of doing business in Dubai (0% corporate and personal tax, strategic location, low labor costs, supportive environment), offshore companies have minimal bureaucracy and good taxes. You can benefit from efficiency and confidentiality.
Offshore companies differ from standard free zone companies in many ways. The main difference is where the company can do business. UAE Free Zone Companies are free to trade from the registered Free Zone, but offshore companies cannot do business within the UAE. However, all offshore holding companies may operate inside or outside Emirates. Offshore companies are also free to buy and own real estate in the United Arab Emirates.
Benefits of offshore companies in Dubai
Offshore companies are a very flexible way to run your business. Unlike other free zone companies, offshore companies can be 100% owned by foreign investors without the need to work with local sponsors. There is also no obligation to move within the physical premises.
Investors who want to protect the anonymity of their business operations can do so by establishing an offshore company. When you register an offshore company, unlike a free zone company, your company information such as the owners will not be disclosed.
As well as the potential improvements in tax efficiency that can result from anonymity, there are other tax advantages to be had for investors who set up offshore. UAE-registered offshore companies benefit from the UAE tax regime – which means zero tax levied on corporate income.
Offshore company formation in Dubai – step by step
Even with the incredibly low taxation of the United Arab Emirates and the ease and low cost of doing business, there is another reason to start an offshore business here. It’s incredibly easy. In fact, the entrepreneurial process is so simple that it can often be completed in just a few weeks.
The exact process for setting up an offshore company in Dubai depends on where you want to set it up (as well as the cost of an offshore company in Dubai). However, in each case, there are steps to perform, some of which are complex and some of which are less complex.
Step 1 is the application. This requires some paperwork. This includes a certified copy of the passports of all individual shareholders, a certificate of residence, the preferred name of the company to be established, and details of the business activities carried out by the newly established company.
This is a very simple process, assuming all documents have been submitted correctly. However, errors in the application or documents provided to the free zone can delay or reject the application. Therefore, we recommend working with a business formation specialist to manage the entire application process and ultimately prevent it from taking longer than necessary.
Corporate Establishment Specialists will also guide you on the other various steps of the corporate establishment process in Dubai. From choosing the best business activity and company name to registering with relevant authorities, opening a bank account, and processing visas as needed. All you need is a few hours of your time and some basic documentation. In some cases, it is possible to register a company without going to the United Arab Emirates.