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Offshore Company Formation in UAE

Offshore Company Formation

The word “offshore” is mainly based on executing, managing and operating in foreign countries with benefits in financial, legal and tax. CBD ACCOUNTING AND TAX CONSULTANT helps in offshore company formation in UAE. So the offshore company formation is the process in which the company operated or managed outside of the country in which it is registered or outside of the country in which owners and shareholders have residence. CBD ACCOUNTING AND TAX CONSULTANT helps in offshore company formation in UAE.

Benefits of Offshore Company Formation in UAE

1. Exemption from Corporate Taxes: At present there is no personal tax or corporation tax imposed neither at the Emirates level nor at the federal level with limited exceptions, such as oil and foreign banks. However, Municipal fees and duties are imposed in relation to certain special commodities, such as liquor and tobacco and this freedom from tax will equally apply to offshore companies.

2. 100% Foreign Ownership: The International Companies Regulations requires no local shareholding in an offshore company as opposed to the companies incorporated in mainland of UAE, which requires mandatory local shareholding.

Therefore foreign investors either individual or corporate entities may own 100% share equity.

3. Simple Registration Procedures and Cost Efficiency: The registration process is simple and expeditious and can be completed within 3 to 4 working days upon submission of the required documentation. Incorporation cost is relatively low as compared with other entities incorporated in free zones or mainland of individual emirates.

4. Low Operational Costs: Offshore Companies are not subject to any registration conditions with regard to the leasing of premises, the provision of guarantees and employment of staff. Offshore Companies may conduct the offshore company business through the office of registered agents like Law Firms and Accountant approved by the registrar and through whom communication with the company can be maintained.

5.Share Capital: There is no requirement for any minimum share capital, although the registrar may require that the paid up capital of the company be commensurate with its proposed activities.

6. Transferable Shares: Shares in offshore companies are easily and freely transferable by a written instrument.

7. Limited Liability: The liability of shareholders in an offshore company is limited to their share in the capital of the company. The regulation requires that the name of the offshore company shall end with “Limited”.

8. Other Benefits: An Offshore Company formation in UAE can be used for international trading, asset protection, tax planning, acquiring real estate properties in the designated areas of UAE, holding, becoming partners and acquiring shares of the other companies, trust funds etc. Capital requirement is only symbolic. Identity of beneficial owners will be kept confidential by law unless there is suspicion of criminal activity. An Offshore Company may open an account in the UAE bank/s and operate such accounts. The offshore company shall also have the option of choosing the governing law, either the UAE Law or the law of the applicant country.

Restrictions on the activities of Offshore Companies

1. The activities expressly prohibited under the regulations are banking, insurance and financial services. The Authorities shall have the power to add other activities to the list of prohibited activities.

2. UAE Offshore Company formation are not generally permitted by the Regulations to carry on any commercial operations within the UAE.

3. Own an interest in real estate property situated in UAE except in the designated areas of UAE as approved by the authorities.

Offshore Company Formation in UAE – Exceptions

1. Offshore Companies may own or rent real estate properties in the designated areas of UAE or any other real property approved by the Ras Al Khaimah Free Zone Authority.

2. An Offshore Company may also open an account in the UAE bank/s and operate such account/accounts.

3. An Offshore Company wishing to conduct trade or any other business within the UAE free zones, or elsewhere in the UAE, must obtain an appropriate License from the competent authorities. This exception to the rule would enable an offshore company wishing to conduct trade or business in the UAE to form, or participate in the formation of, a subsidiary in a UAE Free Zone or onshore UAE and thereafter engage in UAE business in accordance with applicable Licensing regulations.

Offshore Company Formation in UAE – Requirements

Offshore Company formation UAE process is initiated by one or more persons, who may be either natural or juristic, submitting a signed application form to the registrar of offshore companies, together with the relevant prescribed supporting documents.

It is sufficient to state that the object of the offshore company is to engage in any lawful act or activity for which offshore companies may be organized under the regulations. The proposed capital of the offshore company shall be stated in the application form. The information required on an application form should include the full names and addresses of the shareholders, the number of shares proposed to be held by them and the value of the shareholdings. In addition the names and addresses of the directors (minimum 1 director shall be nominated, shareholders may nominate any other person/persons to act as director/s of the company), name and addresses of the registered agents and any other particulars that the registrar may require. The application form should also be accompanied by the offshore company’s proposed memorandum and articles of association.

In addition to the application for registration of the offshore company and the proposed memorandum and article of association, the following documents needs to be submitted to the Registrar:

1. Individual applicant:

  •  Personal profile of applicant.
  •  Passport copy of applicant.
  •  Bank reference letter.
  •  Proof of residence (utility bills like water/electricity bill evidencing the address of the applicant)
  •  Director’s passport copy. (shall be one director minimum, shareholder can also become a director)
  •  Power of Attorney in favor of our office to pursue the incorporation process. (Draft will be provided by us) notarized and legalized up to the UAE Embassy/consulate in the country of execution.

2. Corporate Applicant:

  •  Certificate of registration of the company duly legalized and attested by the UAE Embassy/Consulate in the country of origin.
  •  Certificate of good standing of the company duly legalized and attested by the UAE Embassy/Consulate in the country of origin.
  •  Memorandum and Articles of Association of the company (Applicant Company) duly legalized and attested by the UAE Embassy/Consulate in the country of origin.
  •  Bank Reference letter.
  •  Board resolution calling for the establishment of an offshore company, appointment of directors (minimum one director) and appointing our office as the company legal representative duly attested by the UAE Embassy/consulate in the country of origin.

Upon submission of all the required documents and payment of the prescribed fees, the registrar issues a certificate of incorporation evidencing the incorporation and also allocates a registration number to the offshore company.

We are registered agent and one of the market leaders in offshore business consultancy offering solutions to clients looking to minimize taxes, protect assets and limit liabilities.

We offer

  •  Registered Office with PO Box
  •  Registered agent
  •  Preparation of Memorandum and Articles of Association
  •  Preparation of registration forms
  •  Preparation of Incorporation certificate
  •  Assisting in opening a multi-currency bank account
  •  Filing with the registrar of companies