Establishing offshore companies in Dubai

The Dubai government allows investors to establish offshore companies in Dubai that wish to enter into projects outside their main offices, but at the same time do not want to operate from their main headquarters in their countries. It also provides broad investment opportunities through the free zones available to it, but it has set international conditions, regulations and standards that practice… In light of these companies’ various activities, we will review many details about this matter.

The UAE always seeks to ensure that all its investors legislate stimulating investment facilities by providing integrated services that allow them to carry out their foreign commercial activities, which has made many large and medium-sized companies turn to the UAE to enter into foreign projects, as these projects can be implemented through offshore companies. .

What are offshore companies?

Many commercial companies operate in countries other than those to which they belong or in which they established their business as a country of nationality, and the trend for these foreign businesses is often due to the investment incentives offered by those countries, including low taxes and packages of facilities and aid they provide.

If we take the literal translation term, what is meant by Offshore Company is (far coast), or outside the borders, or beyond the seas, all of which mean outside the borders of the state. Offshore companies are companies registered according to the law of the state from which it carries out its activity and in which the registrar of the company resides.

They are also legal commercial entities or a group of companies that participate in providing and manufacturing commercial services outside the borders of their countries. Companies that invest in the fields of mining, oil fields, and gas extraction fields in the distant seas of their countries may fall under this name.

Characteristics of offshore companies

Characteristics of Offshore Companies in Dubai: They are companies established and operating outside the country and do not deal within Dubai or the United Arab Emirates. These companies are distinguished by several characteristics, including:

• Confidentiality and privacy: Offshore companies in Dubai are distinguished by a high level of confidentiality and privacy. It does not reveal details of shareholders, partners or the business activity it undertakes. This provides a high degree of confidentiality to business owners and protects the privacy of financial and business information.
• Tax exemption: Offshore companies in Dubai are exempt from paying local taxes in the UAE. This means that it is not subject to income taxes, estate taxes or value-added tax (VAT). But you must be aware that it needs to comply with financial controls and regulations in the country of shareholders or partners.
• Banking Facilities: Offshore companies in Dubai are eligible to open bank accounts in the UAE and obtain various banking services. It has advanced banking laws and a financial system in Dubai, which facilitates the management of the company’s financial matters.
• Ease of management: Establishing and managing offshore companies in Dubai is easy and simple. The process of establishing a company is uncomplicated and requires a short time, and does not require the presence of local employees or a physical office in Dubai.
• Diversity of activities: Offshore companies in Dubai can carry out a wide range of business activities, including financial investments, international trade, asset management, financial consulting, real estate, e-commerce, and many others.

Validity of offshore companies

The validity of offshore companies varies according to the laws and legislation in the country in which the company was established. Regarding offshore companies in Dubai, the authority of these companies is usually as follows:

• Validity of existence: Offshore companies in Dubai are considered to have continued validity, unless the company is canceled or the license issued to it is withdrawn. Therefore, the company can continue to operate and transact in accordance with the agreements and contracts it has.
• Validity of activity: The validity of activity for offshore companies in Dubai is determined according to the licenses and permits granted by the competent bodies. The company must comply with the activity conditions and restrictions specified in its license.
• Bank account validity: Offshore companies in Dubai can continue to open bank accounts in local and international banks. The bank account remains valid as long as the bank requirements and local and international financial legislation are complied with.
• Validity of contracts and agreements: Offshore companies in Dubai can conclude contracts and agreements with other parties, and these contracts continue to be valid according to the conditions specified in them.

Owners of offshore companies must comply with the requirements of local laws in the country of shareholders or partners and maintain compliance with relevant local and international financial and tax legislation.

Validity of offshore companies

Establishing a company in Dubai

In order to establish a company in Dubai, you can seek the help of the experts of Itqan Company, which is one of the best reliable companies. You must follow the following steps:

• Determine the type of company: Determine the type of company you wish to establish, whether it is a limited liability company (LLC), an offshore company, a sole proprietorship, or others.
• Choosing a company name: Choosing a suitable and unique name for the company. You must ensure that the name is not similar to the names of other companies in Dubai and that it complies with local laws and legislation.
• Applying to government agencies: Submit a company registration application and obtain the necessary permits and licenses from the relevant authorities in Dubai. The stakeholders can vary depending on the type of company and the economic activity it will undertake.
• Obtaining a commercial license: After completing the legal procedures and submitting the required documents, you will be able to obtain the commercial license for your company. A trade license is a legal document that allows a company to conduct commercial activities in Dubai.
• Establishing office and infrastructure: It may be necessary to establish company infrastructure, such as obtaining an office or work space, and hiring employees if necessary.
• Compliance with local legislation: Must adhere to local legislation and regulations in Dubai, including financial, tax, labor and immigration controls.

It is recommended to cooperate with a legal advisor or a local business consulting company in Dubai to obtain the necessary assistance and guidance to establish a company in Dubai. You must have a good understanding of local laws and regulations and the compatibility of the planned business with local laws and legislation.

Conditions for establishing offshore companies in Dubai

Establishing offshore companies in Dubai is subject to some conditions and requirements that must be adhered to. Here is an overview of some common conditions for setting up an offshore company in Dubai:

• Company License: An offshore license must be obtained from the relevant regulatory authorities in Dubai, such as the Dubai Financial Services Authority (DFSA) if it is a financial company, or the Dubai Economic Development Department (DED) if it is a trading company.
• Financial contribution: A conditional capital must be provided to establish the offshore company, and the required amount can be determined according to the type of company and local laws.
• Local Director: Appointing a Local Director is an important condition in some cases. The local manager must be a UAE national or resident of Dubai to comply with local requirements.
• Local Address: A valid local address must be provided for the company in Dubai. Post office services or virtual address services can be used for this purpose.
• Required documents: Company establishment procedures require the submission of documents such as passports of shareholders and directors, articles of incorporation, financial records, and other required documents depending on your case.
• Compliance with Laws and Regulations: Offshore companies must comply with local laws and regulations in Dubai, including financial compliance, tax and other legal requirements.

It should be noted that the specific conditions vary depending on the type of company and the planned economic activity. It is recommended to cooperate with a legal advisor or a local business consulting firm in Dubai to ensure compliance with all local conditions and requirements necessary to properly and successfully establish an offshore company in Dubai.

In conclusion of this article, it can be said that establishing offshore companies in Dubai provides important opportunities for investors and businessmen. Dubai is characterized by its flexible legislation, stable business environment and excellent strategic location, making it an ideal destination for establishing offshore companies.

By establishing an offshore company in Dubai, you can benefit from many advantages such as maintaining confidentiality and privacy, reducing taxes, and having easy and simplified incorporation procedures. Offshore companies in Dubai can also benefit from access to the global market and the ability to deal freely with international companies.

The most important frequently asked questions about establishing offshore companies in Dubai