UAE is a platform for international business to exempt taxation and have a fully 100% ownership in their offshore business.
There are 3 different types of business you can setup in UAE: Mainland, Free zones and Offshore.
If you are planning to start an offshore company, then you must know some basic things before proceeding.
Offshore companies are used as vehicles for doing International business, and to hold assets within the UAE or internationally and for succession planning or business structuring.
Below are 8 points, which are FAQ’s asked to us while forming an offshore:
- Company name:
You first need to decide your company name in which you can provide 3 names as an option and out of which 1 will be selected by authority, based on priority.
You also need to end company name with Ltd. or Limited, as the authority has a rule for booking your company name.
- Share Capital:
The offshore jurisdictions do not ask proof to show your share capital however, a share capital still needs to be put on paper while forming the company.
There has to be a minimum of 1 shareholder in all jurisdictions. The maximum number of shareholders varies between the three jurisdictions.
There has to be a minimum of one director in an offshore company. A Shareholder can appoint another director, apart from themselves as well. The name of the director may appear in corporate documents and in the jurisdictions business register.
- Office space:
There is no requirement to have a physical office for offshore companies. Offshore companies are register through registered agents and the office address of the registered agent is used for the offshore company in default.
Following are the documents required for having an offshore company
- Original Utility Bill Not Older Than 3 Months Having the Name of Shareholder with Address
- Passport Copy of Shareholder
- UAE Residence Visa or Entry Stamp or Visit Visa
- Copy of CV or Resume
- Latest Six Months Bank Statement (with original bank stamp)
- Time Period:
The process takes 3-7 working days, after document verification and security approval (if any).
- Bank account:
An Offshore company can open a bank account in UAE. After company formation, the bank will ask for relevant documents for opening the company account.
This blog is written by Mr Ajmal, Business Advisor at Flyingcolour Business Setup, VAT and Accounting Services, Dubai. If you have any question regarding setting up an offshore business anywhere across the UAE then please contact us at +971 4 4542366 or email us at info[at]flyingcolour[dot]com.