Offshore opening and setup

Overview

Offshore in Dubai: Opening Costs, Setup, and Procedure

The number of foreign investors coming to the United Arab Emirates is increasing year after year due to the numerous advantages the emirate offers. Foreign entrepreneurs are interested in setting up both offshore and onshore companies depending on their business objectives. Opening an offshore company in Dubai requires appointing a local agent to handle the company registration process .

Setup

Setting up an offshore company in Dubai

Setup and incorporation can be completed in a few days, or in most cases, no more than a week. It's not necessary to rent a dedicated office space; however, a business address is required for a wide range of secretarial services.

How to Set Up an Offshore Company in Dubai

The first and most important step in opening one is choosing a local agent or specialized business formation to carry out the registration.

The following documents are required to set up an offshore company in Dubai:

• the statute;
• proof of current residence;
• the share capital;
• the name of the company that must be registered in the Companies Register;
• the trading name must contain the abbreviation Ltd.

Once these documents are ready, the company must also have a bank account.

Setting up a business requires a local bank account. There are many financial institutions to choose from in the UAE, and the formalities are simple, providing complete confidence to the owners.

Advantages

Reasons and motives

The main advantage of registering an offshore company in Dubai is that it can provide its services outside the emirate without certain requirements applicable to onshore companies. Starting an offshore company in a free zone has many other advantages, including:

• no capital gains tax or repatriation of profits;
• full foreign ownership is permitted;
• only one shareholder and one director are required to register it;
• any currency can be used as company capital;
• there is no need to deposit capital into a bank account;
• Shareholders enjoy maximum privacy.

Additionally, free zones are considered prestigious places to register a company.

Legislation

Legislation on the registration and activity of companies

The Companies Act was first codified in 1984 and has since undergone several amendments to provide a suitable business environment for local and foreign investors. Recently, the UAE government announced the adoption of a new law. Federal Law No. 2 of 2015 on Commercial Companies establishes new regulations for those establishing them in other emirates.

The United Arab Emirates is made up of seven emirates; however, those wishing to establish them must comply with UAE commercial law as well as the laws applicable at the level of each emirate. In addition, the free zones belonging to each emirate also have specific laws and regulations that foreign investors must observe.

We remind investors that this is home to the largest number of free zones in the entire United Arab Emirates.

Procedures

Procedures and permits

Corporate law covers a wide range of requirements that must be met by corporate shareholders before and after incorporation. Before the registration process, a local or foreign investor must meet the following requirements:

• choose a business form recognized by company law and register it according to its provisions;
• provide all necessary documents to the Economic Department based on the type of business selected;
• obtain the necessary business licenses in accordance with the activity to be completed on the market;
• in the case of companies in free zones, the provisions of Federal Law No. 8 on free zones must also be complied with;

There are also cases where free zones have completely separate laws, such as the Dubai International Financial Centre Free Zone.