“Offshore” company which is incorporated for the purpose of conduction business outside its country of registration. It may be 100% owned by expatriates and often used as asset, property or holding companies for other businesses inside or outside the UAE.
A company incorporated for the purpose of operating outside the UAE.
SPMC-Dubai is an active registered agent for RAK International Corporate Centre and has been able to set up offshore companies since 2012.
Benefits and characteristics
- An Offshore company is not allowed to do business or operate within UAE.
- Registered agent is required.
- Not allowed to have a physical office address in the Emirates.
- Not entitled for visas.
- Can maintain local and foreign bank accounts.
- Set up cost is cheaper compared to mainland and free zone company formation.
- Time frame is within 7-10 working days provided that all documentation is in place.
- 100% foreign ownership is allowed
- 100% income tax exemption
- 100% capital and profit repatriation
- Low start-up and renewal costs
- No requirement for a UAE national to be a shareholder or sponsor
- Absolute privacy and confidentiality on company information
- Not required to provide annual audit report
- Company may own real estate properties on approved areas by the authority
- Hold multi-currency bank accounts
- No foreign currency restrictions
- Only minimum capital is required to set-up the company
- Minimum of 1 Director, shareholder and secretary, which can be the same person.
- It does not require the director or shareholders to be present in the UAE for incorporation
- No restrictions on the nationality of the director/shareholder/secretary
- Allowed to conduct multiple business activities (i.e. Management Consultancy, Trading, Holding etc.)
Possible business activities for an Offshore company
- International trading
- Holding activities (with the right to purchase shares of the companies in UAE and abroad).
- Professional services
- Holding of real estate (outside of UAE and in some designated areas of Dubai, UAE).
Offshore companies are not allowed to conduct the following business activities
- Financial activities and insurance.
- Any activity related to media.
- Any activity related to aviation.
4 Main steps involved in Offshore company set up
- Identification of potential company name (three name options required).
- Completion and submission of requirements.
- Issuance of Certificate of Incorporation (COI) and Memorandum of Association(MOA).