Offshore Business Setup Procedure
An offshore company in the UAE is a type of business entity that is registered in an offshore jurisdiction, such as Ras Al Khaimah or Jebel Ali Free Zone. These are, essentially, non-resident companies.
These companies are typically used for international trading and investment, and they offer several advantages such as tax exemptions, 100% foreign ownership, and business confidentiality.
Offshore companies are not allowed to do business within the UAE, but they can conduct business internationally. They are governed by the offshore company regulations of the relevant free zone or offshore jurisdiction.
Activities that Offshore Companies Can Carry Out
Offshore companies offer a great deal of versatility and can be used for a variety of transactional activities, provided that they are carried out outside the boundaries of their registered jurisdiction.
These entities have the capacity to engage in a broad range of operations, such as buying and selling goods and services, opening and maintaining bank accounts, owning physical or digital assets, managing intellectual property, and performing typical business activities.
Some of the Most Common Permitted Activities in Offshore Companies Include
- Holding Company (Buy/Hold/Sell stakes of companies)
- Investments and Joint Investments Company
- Property-Owning (Subject to the respective local laws of each Emirate, City, and Country)
- Commission Agents Company – Intermediary Brokers (IB’s)
- Professional Services
- Trading and Investments
On the flipside, it is crucial to understand that
- Offshore company does not provide residency visa in UAE
- Offshore companies cannot used to execute normal business and trade
- Offshore Company founders cannot avail a Tax Residency in UAE as the place of effective management cannot be considered under current law
- Multiple compliances must be enforced and managed for maintaining offshore companies
Why We Recommend Offshore Company Registration in UAE
As a fully foreign-owned legal entity, offshore companies are not eligible for a trade or business license like mainland businesses.
Although offshore companies offer great flexibility and freedom to conduct a wide range of business activities, they do come with certain restrictions. These companies cannot carry out any business activities within the UAE or conduct business with anyone residing in the UAE.
However, the strategic location and network access with infrastructure support and ease-of-business UAE offers is unparalleled when done strategically for specific business activities.
We recommend you take the advantage of an Offshore Company Registration in UAE with the assistance of experienced offshore business consultants Dubai at Horizon.
- Straightforward Setup and Structuring
- 100% Tax Benefits
- Asset Protection from Third Parties
- Easy and Discreet International Dealings