Offshore company formation in Dubai - A full Guide
In recent years, the rapid rate of business development in Dubai has propelled the city among the best options to consider when setting up offshore companies in Dubai or around the globe. The geographical position, the appealing tax allowances, and the favourable conditions for business of the economic activities enable the businessman and investor to democratize their operations and go global. In this comprehensive guide, we will outline everything that you need to understand this process of formation of an offshore company in Dubai.
What is an Offshore Company?
An offshore company is a business entity that is incorporated in a country or a jurisdiction other than where the center of its business activities or owners are located. These types of companies are generally created in order to benefit from certain favorable tax regimes, the protection of assets and the confidentiality that the offshore country provides. On the flip side of the coin, offshore company formation in Dubai are companies that are not resident in the territories where they conduct business but are free to do so anywhere else.
Benefits of Offshore Company Formation in Dubai
1. Financial Implications
- Corporate and personal income tax is nil
- No tax on capital gains
- Absence of tax on dividends
- Full exemption from taxes on profits or income earned.
2. Protection of Personal Information
- Ability to conceal the identity of the shareholders and directors is allowed to a great extent
- Business dealings are not made known to the public
- Business secrets are not disclosed to third parties.
3. Maintaining Control Over Assets
- Sound Policy Structure
- Maximum protection of assets within the legal framework
- Distinction of personal assets from operational assets.
4. Perfect Atmosphere for Business
- An area or region where East and West collide and meet weightily.
- Opening of the new economically emerging countries.
- Infrastructure and services that correspond to the global standards
- Availability to all regions is commendable.
5. Reduced Suffers in Doing Business
- There is no limitation on foreign ownership as it is 100 percent allowed
- Its not necessary to have office premises
- There are few reporting obligations
Its cheap to operate
Required Documents for Offshore Company Formation in Dubai
For Natural Persons:
- Certified copies of their valid passports.
- Evidence of their residential address ( utility bill or bank statement).
- A letter expressing the current status of the individual’s banking account – address included.
- A brief résumé or work history.
- High quality recent passport photographs.
For Legal Persons:
- The company’s certificate of incorporation
- The Memorandum and Articles of Association
- A board of directors’ decision endorsing the setting up of an offshore entity.
- A maintained log of directorships and shareholding
- An organisational chart depicting various entities in a hierarchy.
Most recent audited financial accounts.
Steps to Setup an Offshore Company in Dubai
1. Opt for a free Zone
- Choose from JAFZA, DMCC or RAK ICC
- Every free-zone has its regulation policies with it benefits
2. Name Reservation
- Select and reserve the company name first
- Write the appropriate name in the form
- Get the name approved
3. Gathering the Required Papers
- Gather all relevant evidence attesting documents
- Ensure the documents are signed and stamped as per the board resolutions
- Submit the relevant documents for registration.
4. Application For License Submission
- Complete all application form and submit the same
- Submit the related fees
- Provide other necessary documents.
5。 Finish up of registration
- Get the invoice confirming registration of the company.
- Get the certificates of shares.
- Get the incorporation papers for the operating company.
Offshore Company Formation Costs in Dubai
Upfront costs:
- Opening a business account: $2,500 - $5,000
- Permits and licenses: $1,000 - $3,000
- Cost for holding a business name: $200 - $400
- Cost for stamping the documents: $300 - $500
Costs on an ongoing basis:
- Further issue of licenses: $1,000 - $3,000
- Fees for a registered agent: $800 - $1,500
- Maintenance of bank accounts: Depends on the bank
Fees for compliance services: $500 - $1,000
How to open an Offshore Bank Account in Dubai?
1.Choosing the Right Bank for Offshore Accounts
–Look for banks that offer offshore accounts
–Compare the banks’ services and pricing
–Think about how much money you will need to invest at the start
–Look at the features that relate to the sending and receiving of money across borders.
2. List of Essentials
–Opening accounts for offshore business
–Approved copies of all shareholder’s majority resolutions executed
–Due diligence on beneficial owners.
–Business plan.
–Recent bank reference letters from both local and any international banks where the applicant holds an account.
–KYC forms submitted.
3. The Steps Involved in Opening a Bank Account
- Complete and file a first-stage application;
- Submit the documents;
- Finalize the verification of compliance procedure;
- Make the first deposit;
- Get the account details;
- Activate the Internet banking functionality.
4. Features of Offshore Banking
–Multi-currency accounts
–Intra country remittances and outward remittances as well
–Web based transaction processing system
–Currency derivatives and/or export-import financing
–Alternate Investment Services
–Card Usage
Why Choose Flyingcolour Business Setup?
In order to form an offshore company in Dubai, in line with best practices, it is advisable to engage the services of a competent business setup consultant such as FlyingColour Business Setup. They provide the following:
- Expert management of the entire installation process
- Preparation and analysis of papers
- Assistance in observing the regulations
- Post-registration services
- Client management through appointed personnel
- Special processing speed options
Conclusion
Offshore company formation in Dubai has its advantages for a business or foreign investor. There is no doubt that with its low tax regime, geo-strategic position coupled with an effective legal system, the region is a prime location for the growth of not only local businesses but corporations looking to broaden their horizons. Though the procedure may sound complicated or intimidating, engaging seasoned consultants such as Flyingcolour Business Setup will mitigate the situation and ensure the enforcement of every requirement.
Mission success, however, resides in knowing your goals, creating high-quality paper works, and selecting appropriate allies for the business setup process. If these factors are taken into consideration and the right help is sought, establishing a Dubai offshore company becomes an easy process and the advantages associated with it can be enjoyed in no time. As always, due diligence and counseling advice should be applied in order to create an offshore company structure that fits the needs of business and regulations in force.
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