The UAE is a perfect hub for offshore company formation. Here, entrepreneurs and investors from all over the world are able to benefit from tax exemption, easy processing, and a high degree of privacy.
What is an offshore company?
Offshore companies are also known as international business companies (IBC) or non-resident companies. The terms refer to a business incorporated in a country different from the one where its principal operations are carried out. Offshore company formation is realized in a specific offshore jurisdiction or offshore financial center. The ownership rights of an offshore company can be given either to an individual or to a corporation.
Benefits of offshore company formation
An offshore company formation is the most easy and affordable type of business setup in the UAE and can be accomplished within a very short period of time.
Other than that, benefits of an offshore company setup include:
- High level anonymity and confidentiality
- Protection of assets
- 100% foreign ownership
- Exemption from corporate and income taxes
- No annual audit report submissions
- No minimum capital required
- No physical office required
Restrictions and requirements
In contrast to company formation on the mainland and in the free zones, offshore company formation does not involve the issuing of a business license. Instead, a certificate of incorporation is provided.
An offshore company conducts its business outside the location where it is registered. It is restricted from doing business with companies inside the UAE mainland. Also, an offshore business cannot have any physical presence or office in the UAE. Therefore, an offshore company setup does not include any resident visas.
Offshores in the UAE
Offshore company formation was established in the UAE in the 1980s. Today, there are three different options for setting up an offshore company in the United Arab Emirates: the Jebel Ali Offshore (Jafza Offshore) in Dubai, the Ras Al Khaimah International Corporate Centre (RAK ICC), and the Ajman Offshore. These offshore jurisdictions each offer different features, conditions, and benefits.
Contact us for a consultation on the business opportunities related to an offshore company formation in the UAE!