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Offshore Company Formation in Dubai
Opening an offshore company in the UAE just got easier! RadiantBiz helps you get all the essentials for your business setup.
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What is offshore company in Dubai?
UAE is one of the most preferred places for business setup by entrepreneurs all over the world. With offshore setup facilities in UAE, traders are getting increasingly attracted to start a business here. Due to the regular reforms by the government in favor of the traders, the demand for UAE Offshore business setup has increased manifold making it one of the most popular preferences for business setup.
An offshore company is a type of international business entity that offers no or low tax benefits, as well as convenience and flexibility in conducting business. Offshore corporations that are registered in Dubai are permitted to have their offices in areas outside of the city.
The company set up in UAE offshore is easy process and gets done in a few weeks. Offshore companies can be established for international trading, holding companies, shipping company, owning real estate, registering copyright and patents as well as for international consulting services.
What are the steps to setup an offshore company in UAE?
Setting up a business in UAE offshore is an easy process that lets you quickly get started with your venture. Follow the below mentioned steps to get started with your business in the UAE offshore:
- Selecting the name and business activity of the company – The name and the business activity of the company is selected with the involvement of law and trust.
- Documents submission – The documents are submitted by the law and trust to the relevant authorities. This is done on the behalf of the real owner of the company.
- Secure business premises – The business premises are secured and a tenancy contract is signed
- Corporate bank account opening – A bank account is opened on the behalf of the client so that business operations can take place
- Get a drafted MoA – A MoA is drafted with the help of the partner and approvals are taken from the relevant authorities. Other documents are also submitted for the final approval so that the licence can be issued.
Advantage of business setup in Dubai freezoneMajor pointers that convey how beneficial it is to start your offshore business in Dubai, UAE.
We have talked about how the UAE offshore should be your priority for business setup. But what are the advantages of setting up a business in the UAE offshore? The advantages of business set up in the UAE offshore is as follows:
What are the documents needed for business setup in the UAE offshore?
Business setup in any jurisdiction requires a set of documents. The documents required for setup in the offshore are as follows:
You need to present a business plan for at least three years, along with name reservations and the type of business activity.
You need to have an original bank reference letter or 6 monthly bank statements that are stamped by the bank.
You are required to present a valid proof of address that may include any utility bills that bears a credible address.
You are required to submit a CV of the shareholders along with their passport copies.
Limitations of UAE Offshore License
There are always two sides of a coin. The disadvantages of the UAE offshore company set up are as follows:
- Restriction on trade boundaries- As an entrepreneur setting up in the UAE offshore, you cannot trade in the UAE mainland or free zone.
- Restriction on business activities- The business activities that can be practised with an offshore company set up licence is lower than that in the UAE Mainland and some activities such as banking,etc. cannot be carried out.
- No office space- You care not allowed to own an office space in the UAE
- No visa provided- As an offshore business owner, you do not get the UAE visa issued.
Choose RadiantBiz for Offshore Company Formation
Dubai offshore licence offers firms a cost-effective regulatory environment with complete tax and tariff exemption. Offshore company formation in Dubai is becoming a dream come true for every overseas investor thanks to excellent business financing infrastructure. RadiantBiz allows your firm to have numerous bank accounts in various currencies to do worldwide commerce.
We are providing effective solutions for your offshore set-up and banking hurdles. Contact our business setup consultants today to get started with your business set up in the UAE offshore.
What are the types of legal entities that can be setup in the UAE offshore?
There are 4 types of companies that can be set up in the UAE offshore. These are as follows:
1. Company Limited by Shares
The shareholders’ liability to the company’s creditors is limited to the capital originally invested, i.e. the nominal value of the shares plus any premium paid in exchange for the company’s issuance of the shares. The word “Limited” or “Incorporated” or the abbreviation “Ltd” or “Inc” must be at the end of a limited company’s name.
2. Segregated Portfolio Company
A Segregated Portfolio Company (SPC) is a company limited by shares. The SPC may build up to ten segregated portfolios to separate the company’s assets and liabilities held within or on behalf of a segregated portfolio from the company’s assets and liabilities. The portfolios are incorporated if the registrar is satisfied with the company’s directors knowledge and experience.
3. Restricted Purposes Company
This type of company created for the purpose of serving as a special-purpose vehicle. An RPS is a limited-by-shares company which specifies that it is a restricted-purpose company and the purpose or purposes for which it was formed. The company is bound by the restrictions on the operations indicated in the memorandum.
4. Unlimited Company
An Unlimited Company (UC) is a company incorporated with or without share capital in which the members’ liability is not limited, i.e. its members are jointly and severally liable to meet any insufficiency in the company’s assets to enable the settlement of any outstanding liability in the event of the company’s formal liquidation.
Frequently Asked Questions
An offshore license is the license that enables you to open an offshore company. By opening an offshore company, you get to trade outside the city you are setup in and maintain privacy as well.
When you follow the rules, offshore banking is perfectly legal, and it gives you the means to better protect your assets against economic and government turmoil while giving you a higher level of currency diversification and financial strength.
An offshore company is one that is incorporated in a jurisdiction other than the jurisdiction that constitutes its main place of operations or where the company's principal investors reside. In a broader sense, offshore simply means a jurisdiction other than your own.
Advantages of offshore companies
2. Asset protection.
3. Reduced tax liability.
4. Protection against lawsuits.
5. Flexible business laws.
6. Ease of operation.
No. This is one of the main differences of Dubai Offshore company to onshore company. Offshore companies do not provide the possibility to receive residency visas over such companies.
To setup an offshore company in UAE, you have to follow a few steps of company registration. To avoid any type of chaos and mistakes take help from a company setup consultant like Radiantbiz. We at Radiant Biz strive to understand these unique precepts and provide expert and reliable consultation to our clients with updated laws and governing regulations, awareness of their rights, and cost-effective business solutions tailor-made to their business needs and budget.