Seven things to remember before starting an offshore company in the UAE
UAE offshore company formation is one of the best opportunities for investors willing to channel their funds and capitalize on international markets. An offshore company registration is beneficial as it offers immense tax saving as well as provides companies to function globally.
However, every new businessman or entrepreneur incorporating an offshore company in the UAE must contemplate to the significant things that can be extremely helpful before starting a UAE offshore company formation.
Here are the five things that you must remember while starting a UAE offshore company:
- A UAE offshore company provides jurisdictional benefits that are spread across the seven emirates of the UAE. For example, Ras Al Khaimah Free Trade Zone (RAKFTZ), Ras Al Khaimah Investment Authority offshore (RAKIA), Jebel Ali Free Zone Authority (JAFZA), Fujairah Offshore, etc. Analyze each jurisdiction and choose the jurisdiction wisely that suits your business the best.
- An offshore company in the UAE does not get a business license, unlike other operating jurisdictions such as Mainland Companies or Free zone Companies that is formed with a business license, an offshore company only gets a certificate of incorporation. If you want to start a business in the UAE with a business license, it is better to consider a UAE Mainland Business.
- Offshore companies in the UAE also need to have a memorandum and articles of association as its constitutional documents. This means that the company cannot carry out business activities in the UAE and its function is to hold the vehicle of assets for the parent shareholders. So, if you are planning to start a business to make monetary transactions then an offshore company would be an ideal way to go, but if you want to start a full-fledged business in the UAE there are several Mainland Jurisdictions to opt from.
- UAE offshore companies have continued to offer a productive and prolific environment for investors from around the world. Yet, people associate offshore companies with fallacies such a money laundering and secrecy of assets. Nevertheless, an investor must understand that an offshore authority in the UAE guarantee confidentiality but ensure the legitimacy of businesses.
- Offshore companies in the UAE follow the Know Your Customer (KYC) process in order to refer bank regulations of the investors as well as keep a note on identifying theft, pecuniary frauds, money laundering etc. The KYC process requires documents such as passport copy, proof of address, bank reference letter and a bio-data of the investors.
- Ras Al Khaimah Free Trade Zone (RAKFTZ), Ras Al Khaimah Investment Authority offshore (RAKIA) are easier to incorporate and companies in this jurisdiction can be established within a week with the required documents at hand. However, some jurisdictions are also a subject to CID approvals.
- Bank accounts need to be created in order to get an offshore company registration in the UAE. In case you are new to the region a business consulting company or even an offshore registering agent can assist for a nominal charge. Also, note that an offshore company cannot be registered without a company registration agent.
If you do not know where to find a company registration local agent get in touch with Shuraa Business Setup. Our business setup consultants can evaluate your entrepreneurial goals and suggest you the best jurisdictions to start your business in Dubai or anywhere across the UAE – be it Mainland, Free zone or Offshore.
Speak to our Business Setup Consultants for FREE. Call us on +97144081900 or WhatsApp +971507775554 request a callback. You may also email us on [email protected] or log on to https://www.shuraa.com/