Offshore Company Setup Dubai
For years, Dubai has been attracting both first-time and experienced business owners looking for tax-free jurisdictions. Today, Dubai is not only a world-class tourist destination but also an emerging platform for offshore company registration for French investors. It offers a separate and legally secure structure for those who want to set up offshore companies with full foreign ownership.
Where to Set Up
The UAE government has created multiple offshore jurisdictions to attract global investors, especially from France and Europe.
French entrepreneurs can consider the following popular offshore zones:
Ras-Al-Khaimah (RAK)
Jebel Ali Free Zone Authority (JAFZA)
These offshore jurisdictions allow French investors to open multi-currency bank accounts and manage global operations efficiently.
But don’t get UAE offshore companies mixed up with free zone companies. A free zone company is 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 UAE, with no taxes on profits and gains.
Offshore company shareholders and directors enjoy full privacy, as their names are not disclosed in any public registry.
Offshore companies in Dubai are tax free for corporate and personal taxes, a big advantage for French entrepreneurs.
Opening an offshore business bank account in Dubai is easy and supported by local and international banks.
100% tax free environment for offshore business activities outside UAE.
Full foreign ownership allowed for French nationals and other international investors.
Free repatriation of capital and profits, multi-currency transactions made easy.
Uses of an offshore company
Offshore companies are highly flexible legal entities and can be used for various international business structures. When used strategically, offshore companies can reduce tax burdens and increase confidentiality for French entrepreneurs and investors. However, forming a company in a no-tax offshore jurisdiction does not exempt you from complex tax laws in high-tax countries like France. Offshore incorporation does not provide a blanket exemption from personal income tax in your home country. But when structured properly, these companies allow profits to grow in tax-neutral environments, giving French startups and businesses faster growth and stronger global competitiveness.
Despite the tax and privacy benefits, the actual implementation of an offshore structure can face legal and regulatory hurdles, especially due to anti-avoidance tax laws in France and other high-compliance jurisdictions. French authorities, such as the Direction Générale des Finances Publiques (DGFiP), may apply GAAR (General Anti-Avoidance Rules) to offshore entities.
It is highly recommended to consult a chartered accountant (expert-comptable) or an international tax advisor in France before setting up an offshore company. Additionally, it is essential to understand the laws of the country where the offshore company will operate. This dual legal awareness ensures that your 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 import-export businesses, sourcing products from one country and selling in another while the company is registered in a third (offshore) jurisdiction. For French businesses, this model can be very effective in managing margins and reducing tax liabilities. Offshore sales and procurement 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 corporate services are similar to many modern financial centers in terms of setting up a company but quicker, less hassle and cheaper. Setting up a company involves preparing and submitting:
- 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 describes the company’s internal dynamics and structure, including purpose, positions, duties and financial obligations, meeting minutes and day to day activities. These documents are sent off to the relevant jurisdiction’s Corporate Registers 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. Once incorporated a new company will have additional requirements such as the appointment of the first director, the first meeting and the appointment of company officers, registration of 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 at every stage of your business setup in the Dubai Free Zone.