Offshore refers to the situation in which business investors invest in an offshore jurisdiction to get benefits from tax exemptions. Over the years, business investors have overwhelmingly preferred tax breaks.
Many countries have taken the mandatory steps to shift themselves into offshore jurisdictions due to its popularity.
In this regard, the United Arab Emirates is not exceptional, as it is one of the most desired locations for the people that are involved in the offshore industry to establish their offshore business. This guide focuses on the numerous points that must be considered when establishing an offshore company in the UAE.
Benefits of Creating an Offshore Company in the UAE
- No customs duties or taxes.
- Fully repatriated profits
- 100 percent foreign ownership is permitted.
- The company must be registered with only one director and one shareholder.
- Any currency can be used as the capital of the company.
- No requirement to deposit funds in an offshore bank account.
- The shareholders benefit from confidentiality.
- Creating an offshore company is a low-cost and simple way to open a corporate bank account.
How to Form an Offshore Company in the UAE?
Choosing a Company Name
The first step in forming an offshore company in the United Arab Emirates (UAE) is to choose a company name. This should be done carefully, as the name of your company will be associated with your business and its reputation. Some important considerations when choosing a company name include ensuring that it is unique and not already taken by another registered company.
The terms such as building society, chartered, fund, Chamber of Commerce, finance, cooperative, Royal, Insurance, trust, Emirate are not allowed to be added in the company name.
Fill the Application Form
Once you have chosen a company name, you will then need to complete the relevant application form. You will typically need to provide certain information about your business and its ownership structure in order for your application to be processed. For example, this may include details of your shareholders, directors, and company secretary as well as copies of passports/national ID cards for all individuals involved.
Submission of the Involved Documents
After you have completed and signed the application form, you will need to submit it along with any required supporting documentation to the authorities in charge. In most cases, you will be able to submit your application and supporting documents online. However, it is important to check the specific requirements of the UAE jurisdiction in which you are forming your company.
Completing the MOA and AOA
Once your application has been approved, you will need to complete the company’s Memorandum of Association (MOA) and Articles of Association (AOA). These documents outline the company’s purpose and ownership structure as well as setting out its rules and regulations.
When the documents are reviewed by the authority; and approved, you can officially launch your company.
Open a Bank Account in an Offshore
Once your offshore company has been formed, the next step is to open a bank account with an international or offshore bank. This can typically be done online and involves providing certain documentation such as identification documents and proof of address. You may also need to specify the types of transactions that you wish to carry out through your account and complete any relevant KYC/AML checks.
As a result, you have seen the essential steps and documentation required to establish an offshore company in the UAE. Now, if you are unfamiliar with legal regulations, proceeding with the process may be a difficult task.
Most global business investors prefer to proceed with the assistance of business experts who have certified knowledge of the company incorporation process. Working with an accredited expert enables business investors to complete the process without error.
Conclusion
With extensive experience in establishing offshore companies in the UAE, we at Dhanguard can help you through the entire process of opening a foreign company bank account in the UAE.
Our business advisors are well-versed in offshore incorporation procedures and can assist you in completing the process without errors. Because of their industry experience, they are able to understand the needs of the business and provide tailored solutions to meet those needs.
If you are interested in establishing an offshore company in the UAE, please contact us right away; we would be delighted to assist you.
Rodney S. Gibson
