UAE Offshore Company Formation
Business representatives are interested in using respectable offshore jurisdictions. Things like freedom of capital movement, tax incentives and protection of investors’ interests are in demand. At the same time, the location should not be on the “black list” of the FATF. These criteria are fully met by the United Arab Emirates. The Middle East state is traditionally considered for registering a global trading business.
There are 3 offshore zones regulated in the country. Each of them has its own benefits. Choosing an offshore company in the UAE will effectively solve the following tasks:
An offshore company in the UAE is suitable for acquiring real estate in the UAE. The company is often used in real estate transactions. It makes it possible to avoid the requirements of Sharia law. We are talking about religious norms from the Koran, when after death assets are distributed in precise proportions among relatives. Children over the age of 21 can be among the co-owners of an offshore company in the UAE and then legally inherit a share in corporate assets. UAE offshore company formation has also other advantages that are presented below.
Having an offshore entity makes it possible to legally include assets from other countries in it. After that, the company is being added into the will. It is officially certified by the Dubai DIFC Court.
An offshore company in the UAE is suitable for protecting intellectual and other assets. The UAE offshore company, which is 100% owned by foreign investors, actively registers intellectual property rights and other business assets. Having a company makes it possible to avoid negative consequences if there are potential disagreements with a partner represented by an UAE citizen in a mainland company.
UAE offshore company formation is also used as a tool for dividing shares in a mainland company. Business representatives in most of the cases can open a mainland company in the UAE only with local participation, in those companies 51% is owned by the Emirati partner. Difficulties arise with the equal division of the remaining 49% among several partners. An offshore company in the UAE is also useful in this situation. Partners have equal shares in it and this company becomes a co-owner of a mainland company.
UAE offshore company formation is also used for optimizing the current activities of branches and creating holding structures. An offshore company in the UAE is
Offshore Company in the UAE and the Specifics of IBC
In a several UAE Free Economic Zones it is possible to establish an IBC, which is considered a classic offshore company for international business. This is relevant both in terms of construction and the opportunities that are provided by local legislation. However, unlike onshore structures, IBC activities have a few limitations. These include:
Prohibition of a direct activity in the territory of the Emirates. Also licensing is not provided, however, the company may incorporate onshore structures in the country;
The absence of the right to rent any commercial space on the mainland of the UAE;
It has limited possibilities in terms of tax planning tools in international structures and agreements;
The absence of the right of applying for a residence permit and obtain a resident visa, a working visa;
Banking restrictions. An exception may be made if there is a large deposit.
Despite this, IBCs are required to provide an Economic Substance or justification for the economic feasibility of being present in the country.
The Process of UAE Offshore Company Formation
UAE offshore company formation cannot be done without an assistance. By analogy with “safe havens”, the standard rule also applies here – the service of offshore agents is used. These specialized organizations with a staff of lawyers and business consultants receive the required licenses.
Specialists from Private Financial Services have all the necessary permissions and knowledge to assist with UAE offshore company formation. We have been operating in the UAE since 2008.
In less respectable jurisdictions that do not meet the requirements of the FATF, the use of nominee directors and shareholders of international companies is practiced. Some businessmen mistakenly believe that this is possible in the Emirates.
In fact, the legislation of this jurisdiction does not provide the possibility of legalizing nominal management. Persons who are appointed as owners and a director have this status as de facto and they are responsible forthe created offshore structure.
The cost of UAE offshore company formation depends on the chosen offshore zone on the territory of the country. If a company is created in Dubai, the price will be from EUR 5000. Starting from the second year, the price for the annual maintenance of the legal entity starts with the price range of EUR 1500.
The cost of registration of companies in the offshore zones of Ajman and RAK (Ras Al Khaimah) starts from EUR 4000.
An offshore company cannot conduct activities that may be limited by the relevant Registration Authority of the offshore zone in which it is registered.
UAE Offshore Company Formation – We Assist Since 2008
Timeframe for registration. UAE offshore company formation will be completed within 3 business days. In case a client requests the urgent registration, a registration is possible within a day. We guarantee efficiency due to the extensive experience of cooperation with government agencies;
A consultancy from our experts on choosing the type of offshore structure. Solutions based on the specifics of activities and corporate goals. Optimization of the global business for clients.
Private Financial Services provides professional outsourcing services, including administrative and accounting services. Specialists of a narrow profile can be involved to solve local problems.
Support with opening current accounts in the UAE and outside the UAE.
Assistance in translation and legalization of documents;
We also accompany in all government agencies and provide support on all other matters in the UAE.