Offshore Company Formation in Dubai: A perfect Tax solution

The Offshore Companies are legal business entities formed to operate outside the original jurisdiction or location of the ultimate ownership. In simple words, these are those kinds of companies formed outside the beneficial owner’s home country. Moreover, these kinds of companies are not allowed to conduct operations or to deal with companies which are situated in the mainland or onshore jurisdiction where these companies are located.

In this article, our Company Formation Lawyer will try to deal with all the relevant queries and questions in relation the offshore company formation and its impact. Thus, for a better understanding of reader, the said concept is described with the help of a diagram as follows:

Why do you choose offshore company formation?

Our Business Formation Lawyer states that:

The offshore Company provides various benefits for its shareholder(s) and most of the investors want to opt its formation because of the said benefits. Thus, to make you understand better the benefits arising out from the offshore Company are mentioned herein below:

  • Offshore Company reduces tax inspections or visits risks for business.
  • Offshore Company cost saving as no visa are required to be issued under these companies.
  • Offshore Company Less Regulatory measures or compliance of local regulations.
  • Offshore Company protects confidentiality of Unique Beneficial Owner name.
  • Offshore Company have less or Tax-free burden upon them.
  • Offshore Company is also used for the Protection of assets such as assets, trademarks and other intellectual property rights can easily be protected.
  • Offshore Company are opted or used for ease of doing business and in a very easy manner company meetings can be conducted.
  • It is very easy to setup Offshore Company.
  • An offshore company can have easy access to an international business.
  • UAE Offshore Company can have bank accounts.

Whether physical presence of Investor is required while forming Offshore Companies in UAE?

Our Business Lawyer in Dubai states that:

The mandatory physical presence of individual who want to be the beneficial owner of the said offshore Company is not required, as Power of Attorney can work or otherwise KYC (know your customer) the authorities are conducting compliance before registering the Company.

Whether there is mandatory or lump-sum capital requirement for the offshore company?

For establishing the offshore Company, no minimum share capital requirement is needed. So, it is not an obligation for setting up Offshore Company there is a mandatory requirement.

What kind of confidentiality is provided through Offshore Company?

The authorities do not disclose the name of the shareholder and or details of directors in the public domain or public register which is maintained for keeping the records of the Company. This is how the confidentiality concerning name of the owners of offshore companies are being protected and kept confidential in nature.

Whether these companies are allowed to operate or open bank accounts?

Our Business Lawyer in Dubai states that:

These companies can open and operate bank accounts in national or international banks in the United Arab Emirates. Thus, it is difficult for these companies to obtain loans from such banks. However, business and normal transactions can easily be conducted from such accounts, and in some case, credit cards are also being issued to the owners of these companies.

Whether the offshore company falls under the jurisdiction of UAE Corporate Tax?  

Our Business Formation Lawyer states that:

The United Arab Emirates Corporate Tax is not applicable on Offshore Company as they are the foreign entities and do not work or provide services within the UAE’s jurisdiction. Thus, these companies are kept out for the Corporate Tax regime which is applicable in the UAE.

What kind of tax benefits emanates from the offshore company formation?

As we all know these companies are being formed to relieve from the tax jurisdiction and issues, so that less tax is to be paid comparatively to which are being paid in their home country jurisdiction.

Whether annual report or taxation return are required to be filed by Offshore Company?  

Our Business Formation Lawyer states that:

The Offshore Companies are not required to file annual reports or returns to the authority. Moreover, these companies are also not required to submit audit reports unless and until any suspicious activities are being detected in relation the terror funding or money laundering. Thus, it is important to maintain the accounting records for the companies varies from the year when such offshore Company have been incorporated shall be kept in record.

Whether offshore Company are allowed to hold shares of the companies situated in onshore, freezone and mainland?

Our Business Lawyer in Dubai states that:

The offshore company are allowed to hold shares in the companies situated in Freezones or Mainland. This procedure is completed after completing some compliance as required by the authorities.

Whether the Offshore Company are allowed to acquire Real Estate ownership under their name?

Our Business Lawyer in Dubai states that:

Generally, the authorities do not allow offshore Company to have real estate assets in their name except some free zone authorities situated in Ras al Khaimah allows the offshore Company to hold or acquire real estate assets under their name. It is to be noted that this is the only freezone in the UAE.

What are the documents required to setup offshore company in Dubai?

Our Business Formation Lawyer states that:

Company Formation in Dubai is a very easy task as Dubai offshore company requires very less documentations and minimal formalities for offshore company formation. For the better understanding of an offshore company in Dubai and documents required therein are mentioned herein below:

  1. Certified True Copy of the passport by Lawyer Attestation.
  2. Resume or Curriculum Vitae (Owner).
  3. Photographs of the Owner or Shareholder.
  4. Reference Letter from any Bank or certified Professional.

These are the documents that are required to be provided by the shareholder(owner) at the time of offshore company formation in Dubai. However, the documents as mentioned above shall not be considered as final because the requirement of the documents are changed depending upon the need of Freezones.

What is fee and procedure for the license of an offshore company in Dubai?

Our Business Lawyer in Dubai specialized in dealing with offshore company formation, states that:

The fees for the license renewal of an offshore company in Dubai is similar to the fees incurred during the setting up of an offshore company. It is important to note that licenses for such companies are being renewed on a yearly basis. So, if you set up an offshore company in Dubai, you have to bear the license cost yearly. The license renewal authority is the free zone authority wherein the said offshore Company is situated and the renewal of the license is done online in a hassle-free manner.

Whether offshore company is allowed to conduct business in the UAE?

Our Business Formation Lawyer specializes in offshore company formation in the UAE states that:

To operate or conduct business activities in UAE offshore company is required to obtain permission from the DED (Department of Economic and Development) and, after that, convert its nature from an offshore company to Mainland or Freezone Company. Then the said Company is allowed to conduct business in UAE. Otherwise, the offshore Company are treated as foreign Companies and are not allowed to perform business in UAE.

Whether company formation in UAE is easy?

Setting up an offshore company is a very easy task in UAE, as the procedure is easy and understandable for any layman. Otherwise, if you are also setting up other companies that are not offshore, the UAE authorities provide remarkable and hassle-free services through which you can easily able for company formation in UAE.

What role does Business Lawyer plays in offshore company formation in Dubai?

Our Business Lawyer in Dubai at Nour Attorneys & Legal Consultants helps provide one of the best assistances for setting up an offshore company. Our law lawyers work in a highly competent and diligent manner to assist our clients in offshore company registration. The role of Business Lawyers is not only limited to assisting the client in offshore company formation but also to wisely provide the clients with company structure so that clients can easily benefit from the existing tax regime in their country.

Our law firm lawyers possess extensive experience in forming the offshore Company as their legal knowledge and advice will always protect your interest legally and may safeguard your interest for future transactions.

Why to choose us?

Nour Attorneys & Legal Consultants tend to provide you with a high range of expertise and qualified Business Lawyers in Dubai, who are always ready to assist and provide you with one of the best corporate legal solutions services for company formation in Dubai. Our law firm has wide experience in dealing with Corporate and Business issue for our clients and our company formation team always work to attain the best results for our clients.

Our Services

If you want to avail the best benefits of the services which our Business Formation Lawyer is providing. Then feel free to contact us as Nour Attorneys is your Legal Partner for Commercial and Business Affairs.

Note: This Article is only for informative purposes, and views expressed herein do not reflect the opinions and beliefs of the website or its affiliates, and the reader cannot hold the website or its affiliates liable for the contents of this Article.