Offshore Company Setup in Dubai for Australians
For years, Dubai has been an attractive first-time and experienced business hub for Australian entrepreneurs seeking tax-free jurisdictions. Today, it’s not only a tourist destination but also an emerging platform for offshore company registration. It offers a secure structure for those wanting to set up offshore companies with full ownership.
Where to Set Up
The UAE government has created multiple offshore jurisdictions to attract global investors, especially from Australia.
Australian entrepreneurs can consider the following popular offshore zones:
Ras-Al-Khaimah (RAK)
Jebel Ali Free Zone Authority (JAFZA)
These jurisdictions allow Australian investors to open multi-currency bank accounts and manage global operations.
Key Benefits for Australians
UAE offshore companies, when mixed with free zone entities, offer a free zone company as an onshore business that allows partial trade within the UAE and is eligible for 0% corporate tax.
It also allows shareholders, directors, and employees to apply for UAE residency visas, whereas offshore companies don’t.
Why Form an Offshore Company in the United Arab Emirates
Global business operations become simpler with an offshore company in the UAE, with no taxes on profits and gains. It’s an ideal choice for Australian entrepreneurs.
Privacy for Shareholders and Directors: Names are not disclosed in any public registry, ensuring full privacy.
Big Advantage for Entrepreneurs: A significant benefit for Australian corporate and personal taxes.
Easy Bank Account Setup: Opening an offshore business bank account in Dubai is straightforward, supported by local and international banks.
00% Tax-Free Environment: Enjoy a fully tax-free setting for offshore business activities outside the UAE.
Full Foreign Ownership: Complete ownership allowed for Australian nationals and other international investors.
Free Repatriation of Capital and Profits: Easily manage multi-currency transactions.
Uses of an offshore company
Offshore companies are flexible legal entities and can be used for various international business structures. When used strategically, offshore companies reduce tax and increase confidentiality for Australian entrepreneurs and investors. Forming a company in a no-tax offshore jurisdiction doesn’t mean you are exempt from complex tax laws in high-tax countries like Australia. Offshore incorporation doesn’t give you a blanket exemption from personal income tax in your home country. However, these companies allow profits to grow in tax-neutral environments, giving Australian startups a faster growth and global competitiveness edge.
Despite the tax and privacy benefits, actual implementation of an offshore structure runs into legal and regulatory hurdles. This is due to anti-avoidance laws in Australia and other high-compliance jurisdictions. Australian authorities like the Australian Taxation Office (ATO) may apply General Anti-Avoidance Rules (GAAR) to offshore entities.
It is highly recommended to consult a chartered accountant (CA) or international tax advisor in Australia before setting up an offshore company. Also, one must understand the laws of the country where the offshore company will operate. This dual legal awareness ensures that the company operates legally while enjoying the tax benefits of offshore jurisdictions.
Offshore companies can function as international trading agents, brokers, or holding companies. They are used as intermediaries for export/import businesses, sourcing products from one country and selling in another while the company is registered in a third country. For Australian businesses, offshore companies allow tax-free profit accumulation, which can then be re-invested for global expansion, innovation, and increased competitiveness.
Offshore Company Requirements
Offshore companies are easier to set up than you think. Offshore services are similar to many from financial centers in terms of setting up a company but quicker, less hassle, and cheaper. Setting up a company involves preparing and submitting the required documents.
- Memorandum of Association
- Articles of Association
- Know Your Customer (KYC) documents
- Corporate Application Document
- Name, Date of Birth, Social Security or National Insurance Number
- Notarized Bank Statement
- Banking Reference Letter
- Professional Reference Letter
- Copy of Passport for Identity verification
- Copy of Utility Bill to confirm your physical address
The Memorandum of Association describes the company’s external affairs and complements the Articles of Association, which describe the company’s internal dynamics and structure, including purpose, positions, duties, and financial obligations, meetings, and day-to-day activities.
These documents are sent off to the relevant jurisdiction’s Corporate Registrar Office. A Certificate of Incorporation, the legal document that confirms the formation of a new company, is issued once the Registrar has approved these documents. The Certificate incorporates a new company with a new company name and have additional requirements such as the appointment of the first directors (where nominee services can be used), issuance of shares, and opening of international bank accounts.
Flyingcolour Business Setup gives you the best business setup services. In addition to this, our experts will help you choose the right Free Zone in Dubai. We can assist you with every stage of your business setup in the Dubai Free Zone.