01Holding sharesAn offshore company can be considered as a holding vehicle for shares or interests in other companies where the relevant ownership arrangement is permitted. This can create a separate corporate layer between the individual shareholder and the underlying investment.
02International business arrangementsBusinesses operating across several countries may use different entities for different parts of their commercial structure. An offshore company can sometimes form part of an international arrangement where the underlying activity takes place outside the UAE.
03Investment holdingEntrepreneurs and investors may consider an offshore company for holding eligible investments or business interests. The suitability depends on the nature of the investment and the applicable ownership rules.
04Asset ownershipA corporate structure may be used to hold certain assets where permitted. The asset itself, the location of the asset and the laws governing ownership should all be considered before the company is established.
05Group structuringAn offshore company may also be used as a holding entity within a wider group structure where separate ownership of different businesses or investments is required.
01Decide the purposeFirst, identify whether the company is intended for holding shares, investments, assets, international business or another permitted purpose.
02Choose the appropriate jurisdictionThe jurisdiction should be selected based on the company's intended use, ownership structure and administrative requirements.
03Decide the ownership structureThe shareholders, directors and other required company officers need to be identified.
04Select the company nameA suitable company name is selected in accordance with the applicable naming requirements.
05Prepare the documentsThe required personal and corporate documents are collected and prepared for submission.
06Complete KYC checksThe registration process can involve questions about the shareholders, source of funds, business purpose and ownership structure.
07Submit the applicationThe completed application and supporting documents are submitted through the appropriate registration process.
08Receive the incorporation documentsOnce the application is approved and registration is completed, the company receives its relevant corporate documents.
09Arrange additional requirementsDepending on the purpose of the company, the owners may then need to consider banking, asset ownership or other corporate arrangements.
01Choosing offshore when you need a UAE operating companyIf your business needs staff, premises, local operations and UAE market activity, an offshore company may not meet those requirements.
02Looking only at the initial setup costThe cheapest incorporation option may not be the most suitable structure once banking, administration, tax and future business requirements are considered.
03Assuming banking is guaranteedIncorporation and bank account opening are separate processes. Banks carry out their own due diligence.
04Treating offshore incorporation as tax exemptionTax treatment depends on the company, owners, transactions and applicable laws. Offshore registration does not automatically remove tax obligations.
05Ignoring Indian tax requirementsIndian entrepreneurs should consider the rules that apply to their personal tax residency and existing businesses before establishing an offshore structure.
06Choosing the jurisdiction before defining the purposeThe company's purpose should come first. The jurisdiction can then be evaluated against that requirement.
