Every business owner wants to work in the most supportive and profitable environment possible. And whatever marker you judge it against, it’s not hard to make the case that Dubai is that environment. This is particularly true when it comes to offshore company setup.
As well as the many benefits of doing business in Dubai – 0% corporate and personal tax, strategic location, low-cost of labour, supportive environment – offshore companies can also take advantage of minimal bureaucracy and greater tax efficiency and confidentiality.
Offshore companies differ from standard free zone companies in a number of ways. The key difference concerns where the company can do its business. UAE free zone companies can trade freely from their registered free zone, however offshore companies cannot carry out any business activities within the UAE. Any businesses that fall under an offshore holding company are free to do business both inside and outside of the Emirates, however. Plus, offshore companies are free to purchase and own UAE real estate.
Benefits of offshore companies in Dubai
There are a number of benefits of offshore company formation in Dubai:
Greater flexibility:
An offshore company is an extremely flexible way to run a business. Like other free zone entities, offshore companies can be owned 100% by a foreign investor without the need to work with a local sponsor. There is also no requirement to take on physical premises.
There is also no requirement to take on physical premises.
Increased confidentiality:
Any investor looking to protect the anonymity of their business activities can go some way to doing so with an offshore company setup. When registering an offshore company, as opposed to a free zone company, details of company owners are not disclosed.
Tax advantages:
As well as the potential improvements in tax efficiency that can result from anonymity, there are other tax advantages to be had for investors who set up offshore. UAE-registered offshore companies benefit from the UAE tax regime – which means zero tax levied on corporate income.
Offshore company formation in Dubai – step by step
Even if you put the UAE’s incredible low tax regime, and ease and low cost of doing business aside, there’s yet another great reason to set up an offshore business here – it’s incredibly easy to do so. In fact, the company formation process is so simple that it can often be completed in a matter of weeks.
The exact process for starting your offshore company in Dubai will depend on where you choose to set up (as will the Dubai offshore company cost). However, in any case, there are a number of steps that need to be taken, some complex, some less so.
Step one is to make your application. To do this you’ll need several documents. These include an attested passport copy for all individual shareholders, proof of residency, preferred name of the company being formed, and details of the business activities that will be undertaken by the newly formed company.
Providing all documents are filed correctly, this is an incredibly straightforward process. Any errors in your application or the documents provided to the free zone could result in the delay or even rejection of your application, however. That’s why it’s a good idea to work with a company formation specialist who can manage the entire application process for you, and ultimately ensure it takes up no more of your time than it needs to.
A company formation specialist can also guide you through other aspects of the Dubai company formation process – from choosing your most suitable business activity and company name, to registering with the relevant authorities, opening bank accounts and processing visas should you need them. All that’s required from you is a few hours of your time and some basic documents. In some cases, it may even be possible to register your business without visiting the UAE.
All that’s required from you is a few hours of your time and some basic documents.
Working with Virtuzone
Starting a business anywhere in the world can be a lot of work. That’s exactly why Virtuzone’s business setup consultants will manage all the heavy-lifting, meaning there is no need for you to visit countless government and free zone authorities to get the job done. All we need from you is some basic documents and a little of your time.
