Offshore Company Setup in Dubai
Dubai, being an international business hub, attracts numerous companies and individual entrepreneurs to opt for Offshore Company Setup in the emirate. With its remarkable tax benefits, privacy advantages, and streamlined setup procedures, this option proves highly enticing.
Offshore company formation is just one of several avenues for business setup in Dubai, alongside mainland and free zone companies. So, what makes initiating an offshore company in Dubai a favorable choice, and for whom is it most suitable? This blog aims to provide a comprehensive guide to Offshore Company Setup in Dubai for 2024.
Table of Contents
- What is an offshore company in Dubai, UAE?
- Benefits of setting up an offshore company in Dubai, UAE
- Documents required to start an offshore company in Dubai, UAE
- Steps to start an offshore company in Dubai, UAE
- How much does it cost to set up an offshore company in Dubai?
What is an offshore company in Dubai, UAE?
An offshore company in Dubai is a business registered in the UAE for tax purposes while conducting its business activities outside the country. These entities, typically limited liability companies, offer financial protection.
Offshore companies in Dubai are chosen for various reasons, primarily because they are not liable for corporate tax in the UAE on profits generated elsewhere. This can lead to substantial tax savings compared to staying in the original jurisdiction.
Common types of businesses opting for offshore companies in Dubai include property holding firms, intellectual property (IP) holding companies, shipping firms, general trading companies, online advertising companies, distribution and logistics firms, and various types of brokers. It’s crucial to note that offshore companies in Dubai are restricted from trading within the country or employing people in the UAE.
Benefits of setting up an offshore company in Dubai, UAE
Setting up an offshore company in Dubai offers an array of benefits, making it an attractive option for entrepreneurs, holding companies, and consultants:
- Low or no tax: Offshore companies in Dubai pay no tax on profits, providing more capital for business retention and reinvestment.
- Bank account: Easy access to open a UAE bank account holding multiple currencies.
- International expansion: Offshore companies facilitate international business operations.
- Stable base: Dubai is considered exceptionally stable economically, socially, and politically, ensuring asset protection.
- Privacy: Offshore companies do not require audits or the publication of accounts, ensuring a high level of privacy.
- Access to funding: Being in a respected location like Dubai enhances global funding accessibility.
Documents required to start an offshore company in Dubai, UAE
To initiate an offshore company in Dubai, compile key documents including a business plan, bank statements, proof of address, copies of shareholders’ passports, three compliant business name options, and a description of business activities.
Steps to start an offshore company in Dubai, UAE
- Choose your company name: Comply with UAE company naming rules when selecting a name.
- Fill in your application form: Submit the application form with the required documents.
- Draft MOA and AOA: Prepare the Memorandum of Association (MOA) and Articles of Association (AOA).
- Open your onshore bank account: Establish an onshore bank account for operational purposes.
How much does it cost to set up an offshore company in Dubai?
The cost varies based on business complexity, shareholders, and visa requirements. As a general estimate, starting an offshore company in Dubai may cost at least AED 12,500. Despite initial fees, the savings from tax exemptions on profits make it a cost-effective choice.
Working with Firmz
Firmz, with its decade-long expertise, has aided numerous offshore companies in setting up in Dubai. Their comprehensive services include a dedicated business setup manager, tax preparation, legal advice, HR management, and business networking opportunities.
For all the support you need in setting up an offshore business in Dubai in 2024, contact Firmz today!