Offshore Company Dubai | Great Way To Protect Your Assets
Offshore company Dubai: 7 steps to register, facts you need to know in forming your offshore company in Dubai
An offshore company Dubai can be formed within the jurisdiction of JAFZA in Dubai. You can incorporate an offshore company with the help of an agent who supports you in filing your legal documentation. This article gives you the various advantages and related steps you must take to get an offshore company registered in Dubai.
Please invest 2 minutes of your time to watch the video below. It spells out how you can benefit. Or if you prefer to read, then feel free to skip the video and go straight to the text below:
The new way to form offshore companies
An offshore company in Dubai is a relatively recent phenomenon. Offshore companies internationally also known as International Business Corporations IBC have been a popular entity in structuring business and personal assets for more than 70 years now. In the past, it was popular among only the very wealthy.
Today offshore companies in Dubai are no longer limited to wealthy investors and have fewer regulations.
It was predominantly used by the wealthy for asset protection and as a safe haven from high taxation in your home country. Not any more. Now even small businessmen, professionals, and internet marketers increasingly use offshore companies. The United Arab Emirates (UAE) introduced offshore company Dubai as an IBC and made its debut in Dubai.
From the very beginning, the Jebel Ali free zone was set up to become an international business hub providing clients a wide range of valuable features like:
- A strategic business location
- Excellent logistics
- High-capacity infrastructure
This has added to the interesting private and secure reputation of JAFZA.
JAFZA registers offshore companies in Dubai as well as free zone companies with operating trade licenses. These licensed companies are permitted to trade, manufacture and conduct business in the UAE.
How does it work?
Offshore companies in Dubai, however, are not allowed to have a trade license since it isn’t necessary for ownership of an offshore company in the UAE. This, however, limits the scope of activities. No trade can be conducted within the UAE. Only international business is allowed.
An offshore company in Dubai, i.e. an IBC registered in JAFZA, immensely benefits from Jebel Ali free zone’s reputation. Unlike other offshore jurisdictions, JAFZA is a serious international finance, manufacturing and trading location.
An IBC registered in JAFZA makes for a legitimate entity to conduct bonafide business assisting with the development of a new customer base.
This leads to its immediate acceptance in financial transactions, especially in the Middle East. The offshore company in JAFZA offshore has a very important unique advantage. Dubai has been a popular destination for property investment. The Dubai Land department registers the property in the name of individuals or companies.
However, it recognizes only JAFZA offshore as a legitimate entity, not other offshore jurisdictions. So if you would like to own Dubai property via an offshore company then you must register an IBC in Jebel Ali.
An offshore company registered in Jebel Ali is readily accepted by all banks in Dubai for opening bank accounts.
7 steps to register your offshore company in Dubai
1. Contact reliable agents with experience who are either authorized to apply to JAFZA on behalf of a client or who have access to such an agent to serve as consultants. You may also contact your regular agent who can get the job of an offshore company formation done through an established agent.
2. Ask the agent on your team for an official quote for the scope of work you want.
A possible range of services are available including:
- Company registration
- Bank account opening
- Nominee Services
- Any special attestations needed
Nominee services provide a layer of confidentiality
3. Suggest three names for the company out of which one will be selected by the registration authority
4. Finalize the activity scope for the company: This can be an investment in property, trade, consultancy, or acting as a holding company. By default, it is set up as general trading
5. Decide the share capital: There is no minimum limit for offshore company
6. Finalize who will be the shareholders, partners, directors, and secretary. A minimum of 2 directors are needed
7. Provide the required documents to the agent
- Notarized passport copy of the shareholder and directors
- Proof of address for these in the original. These are mostly utility bill in their name showing a street address
- Bank reference letter
- A brief resume of the shareholders
Once these documents are submitted to your agent, along with the fees, your agent will apply for name approval. A name will be approved only if it meets JAFZA Offshore’s criteria and is available.
An application set is made with the application form, Memorandum of Association, and Share Certificates. These are signed by the shareholders, directors, and secretaries then submitted. In the case of JAFZA, personal presence of shareholders is required at the time of registration.
A company is chartered in 3 working days if all papers are in order.
You will receive a certificate of incorporation, memorandum of association, and share certificate from the issuing agency.
If you would like it may be a good idea to get a certificate of incumbency and certificate of good standing on paying some extra fees.
You are now ready to start a business for the purposes you require. You are now ready to open a bank account for the company.
You may approach your local consulate in Dubai to have these documents attested or get them attested from the British embassy. This helps in establishing the authenticity of the company itself when using it outside the GCC.
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