Offshore Company Formation in Dubai- Answers to most common Questions
Offshore companies, often known as International Business Companies, are legal entities that are incorporated under the laws of a jurisdiction and prohibit economic activities within that jurisdiction.
Owing the tax-efficient structure of offshore company formation companies can easily increase asset protection and business flexibility.
Why are International Business Companies choosing Dubai?
Dubai is considered the central hub and gateway of International business in the UAE and Middle East region. Following are some of the reasons why people consider Dubai for establishing their business operations;
- Dubai is home to more than 200 nationalities.
- World class infrastructures and good political stability.
- Strategically located, attracting millions of tourists and thousands of investors every year.
- One of the biggest referents in bank and finance-sector for its international influence and exposure.
- With a very low crime rate and its judicial system, is considered one of the safest cities in the world.
- Dubai is a medical destination for the high standards of healthcare all in place.
- Advance academic education in public and private system suiting all cultures and languages with balanced treatment of Expats and Emiratis.
- A wide variety of options to satisfy the entertainment of any culture, taste, and budget.
- Dubai is hosting Expo 2020 , the worldwide event, expecting more than 25 million visitors out of which 70 % will be visitors outside the UAE.
How Many Offshore Jurisdictions are there in Dubai or UAE?
UAE Consists of 7 emirates and Dubai happens to be a prime one. There are three offshore jurisdiction in UAE out of which one is in the emirate of Dubai.
You can choose together with a certified and UAE registered offshore agent if you would like to have an ;
1.Offshore company formation in JAFZA (Dubai)
2. Offshore Company Formation in RAK IBC ( Ras Al Khaimah)
3. Or start an Ajman Offshore Company ( Ajman- Norther Emirate of UAE)
Always ensure that you go through a reliable and registered offshore agent.
What are the advantages of Offshore Company Formation in Dubai?
Depending on the business idea and the strategic objectives the investors want to develop in UAE, will be necessary to set up the specific company in form to optimize the resources and take profit of the benefits of each enterprise type. An offshore company formation in Dubai offers interesting advantages ;
- Exempted from all personal and corporate taxes
- No restrictions on foreign currencies
- Total repatriation of the capital and the profit’s companies
- Offshore company setup costs are less that of an onshore company.
- No need of a local sponsor, allowing total foreign ownership
- Complete financial privacy and confidentiality
- Ability to open a corporate bank account with multiple currencies
- Can own real estate in Dubai and act as a Holding Company.
Are there any disadvantages of an Offshore Company Formation in Dubai?
Although, we cannot really say that there are disadvantages of an offshore company formation in Dubai, however, if you are looking at perhaps doing local business in the region, there are some restrictions related to the registration of an Offshore as compared to a mainland or free zone company. So, it is important you are clear to realize these few limitations:
- No possibility to rent a warehouse or an office in UAE.
- Cannot carry a business through a Mainland or Free Zone company in UAE.
- No allowed activities like insurance, banking or financial services.
- Not allowed to have employees.
Although an offshore company formation in Dubai offers freedom to do business in a tax efficient and cost-effective way, it is not a suitable option for Businesses that would like to operate and conduct business activities in the local jurisdiction of Dubai or UAE.
Is it illegal to have an Offshore Bank Account?
You might have heard myths about offshore banking being illegal, but offshore banking is completely legal. It’s not about tax exemption or any form of other illegal activities. The sole intention of opening an offshore bank account is about legally diversifying your political risk by putting your liquid savings in reliable, well-capitalized institutions where they are treated best.
I Plan to start with an Offshore Company Formation in Dubai- Who Can help me?
Dubai is excellent to start an offshore company, assuring better image to clients and suppliers, confidentiality and anonymity, within its quick and reliable process.
ADAM Global is an offshore registered agent for all three offshore jurisdictions in UAE. If you are looking at an offshore company formation in Dubai, you can reach out to me directly on email@example.com to get FREE personalized consultation and advice.
About the author
Abdel Abdelkader is originally from Spain and actively facilitating the International Business Development Division at ADAM Global Dubai. He is committed to helping foreign entrepreneurs and International Business Companies in understanding the UAE business environment and facilitate the company formation procedure in UAE. He can be reached via Mobile on +971 55 632 1551 or email on firstname.lastname@example.org