01Holding shares in another companyA Jebel Ali offshore company may be used to hold shares in another company, subject to the applicable requirements. For example, a Pakistani entrepreneur with an established business may want to explore whether an offshore entity can hold an ownership interest in a separate operating company. That does not mean the offshore entity takes over the day-to-day operations of the business. The operating company continues to conduct its own activities under the laws and licences that apply to it. Before making a change to the ownership structure, it is important to consider the legal and tax consequences in the countries involved.
02Holding eligible assetsAn offshore company may also be considered for holding certain assets where the applicable rules allow it. Property ownership, in particular, should never be assumed to be available simply because the company is registered in Dubai. Eligibility depends on the relevant property rules, approved locations and the company's legal position. If the company is being established to hold a specific asset, that point should be checked before incorporation.
03Managing international investmentsSome entrepreneurs have investments spread across several markets. They may be looking for a corporate structure that makes ownership and administration easier to manage. An offshore company may form part of such an arrangement, but the structure needs to make sense from both a legal and financial perspective. The countries where the owners live, where the assets are located and where the income arises can all affect how the arrangement is treated.
01If you are registering as an individualYou will generally need to provide personal identification and information about the proposed company. The registration process may also require details about the intended purpose of the company, its ownership and the individuals who will manage it.
02If a Pakistani company will be the shareholderA company investing in an offshore entity may need to provide additional corporate documents. These can include incorporation records, constitutional documents, shareholder and director details, and a resolution authorising the investment. Where a Pakistani company is involved, the relevant requirements in Pakistan should be reviewed before transferring funds or changing the ownership of an existing business. The ownership arrangement should be clear enough for the registration authority and any bank reviewing the company to understand who owns it and why it has been established.
01Choosing offshore when you need to trade in the UAEAn offshore company is not a substitute for a business licence. If you intend to sell products, provide services or operate from a UAE office, check which structure permits those activities.
02Assuming that a bank account is guaranteedThe registration authority and the bank have separate requirements. A company may be incorporated but still need to satisfy the bank's due diligence process.
03Overlooking Pakistani reporting requirementsA UAE company does not automatically remove obligations connected with overseas investments or funds in Pakistan. These should be reviewed before the investment is made.
04Leaving the ownership structure unclearIf several individuals or companies are involved, the ownership should be documented properly. Gaps in the paperwork can lead to additional questions during registration or banking.
05Focusing only on the registration feeThe cost of incorporation is not the same as the cost of maintaining a company. Renewal, documentation, professional advice and compliance may all need to be considered.
06Not being clear about the company's purposeYou should be able to explain why the company is being established, what it will hold and how it will be used. That explanation should be consistent across the registration documents and any subsequent banking application.
