If you come across the term “offshore company”, you might think of millionaires sheltering their funds from the tax authorities. Offshore companies are not one-dimensional anymore. Entrepreneurs utilize offshore companies for a variety of purposes including reducing business overheads. Also, minimize administrative obligations, utilize banking facilities in a stable jurisdiction, and privacy.
UAE Offshore Company Formation
Your company can be set up in a matter of days since you need minimal paperwork to get started. First and foremost, you are not required to obtain a physical office or hire any staff for the firm. Secondly, thanks to the internet and the ability it provides to work from anywhere. It’s common for international traders, expats, and digital nomads to set up an offshore company to match their lifestyle.
Offshore Business & UAE Visa
As the business is “offshore“, you cannot obtain any UAE residence visas. Similarly, it cannot engage in business within the United Arab Emirates. However, various authorities permit offshore companies to hold the shares of both Free Zone and local companies.
Leading Free Zones for Offshore Company Setup in the UAE
We recommend setting up your offshore business in one of the two leading jurisdictions in the UAE. We, therefore, recommend the jurisdictions of RAKICC Offshore (commonly known as RAK Offshore) or Jebel Ali Free Zone Authority Offshore (commonly known as JAFZA Offshore).
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RAK Offshore
For RAK Offshore, you do not need to be physically present in the UAE for incorporation. Your registered agent will take care of all formalities. It takes on average two business days, and the costs of such a company are very competitive in comparison with other offshore jurisdictions such as BVI, Panama, and Cyprus. You will need to keep accounting records for seven years, but you do not have to file the accounts with the RAK Offshore authorities.
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JAFZA Offshore
A JAFZA Offshore company will take 3-4 weeks to register. The company shareholders and directors need to sign documents in Jebel Ali which your registered agent can facilitate. You must keep accounting records for ten years; the company must appoint an auditor to report on the accounts.
Documents Required for Offshore Company Incorporation
Below-listed documents are required for offshore company incorporation from all shareholders and directors:
- Passport copy
- Proof of address
- Bank reference letter
- Curriculum vitae (in certain cases)
Offshore Bank Account
Offshore companies use local banking services available in the UAE for which we can provide the necessary introductions. UAE banks will give you the ability to conduct your business using a variety of currencies.
Start Offshore Company in the UAE
Let us help you with the successful launch of your offshore company based on our years of experience dealing with companies operating in various niches.
If you like this, you might be interested in reading more about the RAK Foundation and Starting Family Offices in RAK ICC.
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