Offshore Services

The economy in the UAE is on the riseThe policies and decisions don’t change with a shift in power, which brings a more politically stable environment for a business to grow and thrive. The government is particularly focusing on the non-oil sectors.

The administration is giving additional impetus by providing better infrastructure and formidable policies for forthcoming entrepreneurs to provide good conditions for their business to prosper in the UAE.

Dubai is the rapidest rising emirate state, especially in travel and hospitality sectors. There are numerous duty exemptions that are still followed in UAE. The zero-tax policy continues to
make Dubai a lucrative destination for business to thrive. Individuals and businesses globally thereby eye Dubai as a preferred location to setup their Offshore companies for positive growth.

If the vision is clear then the objectives can be easily achieved

-His Highness Sheikh Mohammed Bin Rashid Al Maktoum

“UAE, Vice President
Prime Minister & Ruler of Dubai”

However, Offshore Companies in UAE are not be mistaken for UAE Free Zone organizations. An Offshore Company is a lawful business entity that works for-profit work outside the country of its registered location. However, there are certain limitations for setting up this type of a company in Dubai.

Some limitations include –

These types of companies are knows as “Non-Resident Companies” or “International Business Companies”. Shareholders of such companies do not get a visa for UAE.
Being NRC, these companies are not allowed to conduct manufacturing, professional services or trading activities on Dubai soil.
These companies are only offered a “Certificate of Incorporation”

But you can set up an Offshore company for

Privacy

Tax Benefits

Protection of corporate assets

Overseas expansion opportunity

Some key advantages of setting up “Offshoring Companies” include –

Right of privacy
Attractive tax rates
No regulation on repatriation of revenues and profits
Quick regulatory proceedings. An offshore company can be incorporated and registered within 3 days
No requirement of a local partner. This gives 100% ownership of the company
Duty free environment
No mandate for a physical office address. A virtual office is also acceptable
Low cost of maintenance
Access to the modern infrastructure facilities in Dubai
Tax benefits. No mandatory tax audits

In the UAE there are three Offshore wards

01. Dubai Offshore Company / JAFZA Offshore Company

02. Ras Al Khaimah Offshore Company

03. Ajman Offshore Company

Offshore Company Formation – FAQs

1. How long will it take to register a UAE Offshore company?

It takes approximately 1 week to register a RAK IC after Sovereign receives all of the necessary registration documents from all shareholders and directors of the new company. A JAFZA Offshore company will take approximately 4 weeks to register.

2. Am I required to visit the UAE to register a UAE Offshore Company?

There is no such requirement for registering a RAK IC. However, for a JAFZA Offshore
Company, the shareholders and directors are required to sign in the presence of the
authorities in Jebel Ali.

3. Is it possible to obtain a UAE residency visa through a UAE Offshore company?

No. Only Free Zone and Onshore Companies can offer UAE visas.

4. Can an offshore company lease office space in the UAE?

No. However, each company must have a registered address and can use this address to receive mail and perform other secretarial services. Sovereign can provide these services as a company’s registered agent.

5. Am I required to have my bank account located in Dubai or can I have an international account?

UAE offshore companies are typically incorporated in order to utilise the local banking services and 0% rate of tax. However, it is possible for these companies to have accounts elsewhere in the world. Sovereign has many international banking relationships worldwide and can provide the necessary introductions.