Starting and establishing a successful business is not an easy step. While there are too many variables that affect your decisions and how they resonate through and reflect on the business’s success, there can be an overwhelming amount of options and not enough expertise to help making the right call. And even after getting through the starting period successfully, the next of abusiness expansion can be critical and tough to achieve.
At Dufinco, we know all about the confusion, the questions, the struggles, and pressure to make the right decision regarding any business step, and we know the importance of counting on a trustworthy partner through this bumpy ride. This is why we commit fully support our clients with our team of experts who know all about the various stages of company formation or expansion.
The first step any business owner should take is to decide where to start their business, on the mainland, in a free zone, or offshore. There are so many differences between these three options, and each business, depending on its activities and characteristics, can be suitable for one of the three.
Our team at Dufinco will help making the right choice between free zone, mainland, or offshore, depending on the conditions and characteristics of a particular business. Not only that, but we will work very hard to assure that the process of business formation goes as smoothly as possible for you.
Whatever option is choosen, we will always be here to support our clients with the right information and technical support. And because we care so much about sharing knowledge with our clients, we have compiled this quick, handy guide to provide an outline about offshore company formation in Dubai or UAE.
An offshore company, also known as a non-resident company, is a type of company that ideally operates on international basis, meaning it is involved with industries like the shipping industry, international trading and import/export activities, or real estate. There are many advantages for companies involved in these activities to be listed as an offshore company. Because Dubai and UAE are keen on providing the best operating conditions for all businesses, companies listed as offshore enjoy several tax exemptions, as well as facilitations for international operations.
So how can you set up your offshore business and start working? Here’s a quick rundown of the main steps you have to take:
- Choose an area for the company
In UAE, there are two main jurisdictions for formation of offshore companies, known as Jebel Ali and Ras Al Khaimah. Each one of them has different requirements and steps for registering a business.
- Preparation of documents according to the zone
Whether in Jebel Ali or Ras Al Khaimah, the require documents to be fulfilled are similar, and include company name designation, reference documents from banks, and passports and personal documents of shareholders.
- Payment of required fees
It’s actually very cheap to start an offshore company in Dubai or UAE. The required fees are publicly stated through the websites of Jebel Ali or Ras Al Khaimah. We offer support to our clients to acknowledge and paying for the required fees for obtaining the licenses.
- Making all the boxes are checked
In order to be allowed to form an offshore company in the UAE, there are many requisites that should be abided. For example, shareholders must be 100% foreign. Additionally, the company must operate solely outside of the UAE, meaning it can’t conduct business with or employ anyone inside the UAE. It is also not allowed to rent office space in UAE for the offshore company, although a verified physical address for billing purposes must be provided.There are more details about what allow and not to do as an offshore company which could vary based on the area where it’s based. This is why it’s important to conduct a thorough comparison of both Jebel Ali and Ras Al Khaimah to decide which suits the business better.
- Finalize the registration
It’s fairly easy and cheap to start an offshore company in UAE if the steps and requirements of your chosen zone are properly followed, and it can be expected to be done within 1 week, with no need to travel to UAE to finish registration.
There are many particular advantages for an offshore company to be based in Dubai or UAE. Unlike other offshore locations, UAE is a safe and trustworthy area for offshore company, and it doesn’t carry a bad reputation. Additionally, as an offshore business owner in Dubai or UAE, one is not obligated to disclose any information about shareholders to any entity. It’s not necesarty to be frequently present in Dubai or UAE for banking purposes, as all banks in Dubai and UAE offer highly efficient and secure online banking services.