The moment we hear the term offshore company we think of a business landscape away from our home country that provides a tax haven. However, that is not the entire truth. Forming an offshore business in Dubai has several benefits and not just an avenue to save income levy. Countries all over the world offer business entities the facility to set up this kind of venture and reap the fruits of its flexible and financially attractive local laws. Dubai is no different. In fact, it is one of the most sought-after places.
Some of the advantages of Dubai’s offshore company formation are mention below.
- It provides several unique advantages to most businesses.
- Tax benefits – This can vary from country to country.
- Guaranteed privacy – It means the offshore company can use it to control a network of enterprises.
- Absence of customs duty, full repatriation of funds, and multi-currency transactions.
- 100% ownership.
Jebel Ali Free Zone Authority or JAFZA as it is popularly called was the first place in UAE to allow foreign entities to register an offshore company in Dubai. This was followed by other Emirates such as Ras-Al-Khaimah’s Free Trade Zone called RAKFTZ. With a great experience of setting up offshore companies in the UAE, we assist in all procedures from start to end for opening a foreign company bank account here.
There are several benefits of offshore company formation, however, you need to make sure it fits your business ethics, ethos, geo-location, manpower requirement, etc. Some of the areas which need close inspection include –
- Political Stability – This simply means a business environment that is free from upheavals and stutters.
- Work Culture – Many offshore locations are built around stringent patriarch laws. This could be a deterrent for companies that follow the open culture.
- Time Zone – The local business hours need to match up with the rest of the world for a certain period. This typically allows business transactions over the telephone, video call, or messenger.
- Connecting Markets – If the buyers are close to the place of operation it not only saves time but offers relief from costly transportation.
- Robust Banking System – An efficient banking system can ease some of the business pressure of an offshore company. UAE is a perfect example. The process to open a corporate bank account in Dubai is hassle-free.
- Communication systems – State-of-the-art communications allow an offshore company to keep in touch with its buyers and vendors all the time without interruption.
Business Link UAE, a pioneering law firm provides impeccable service for offshore company setup/registration in Dubai. Because it is a multi-faceted legal firm it also helps business entities open a business bank account in Dubai.
Mention below are some of the documents need to set up an offshore company:
For Individual Shareholders –
- Attested passport copy of the owner/shareholder.
- Residential proof.
- Original bank reference document.
- Details of the owner/shareholder.
- Prefer the name of the company need to form.
- Activities of the newly formed offshore company.
- The hierarchy of beneficiaries.
For corporate entities a certificate of incorporation duly attested along with the following documents are mandatory for offshore company formation in UAE in general and Dubai in particular:
- Board resolution.
- Memorandum of Association.
- Parent company certificate mentioning the name of shareholders/directors, and duly attested.
- Hierarchy of beneficiaries.
Apart from the above the passport copies of the shareholders, parent company’s financial record (Legal standing) and some other documents may also be required to set up offshore business in Dubai.