At Quanet solutions, a top auditing and accounting firm based in UAE, we do have the solutions for all your legal and business set up needs. We provide legal consulting when you decide to set up an offshore company in UAE, apart from assisting you in the documentation for legal purposes in your day to day business activities.
What is an offshore company?
An offshore company is a legal entity that is registered for operations outside its original nationality.
They are not allowed to do business in or with UAE residents but can carry out their international operations from their offshore setups.
They must not be confused with free zone companies where they have zero percent corporate tax but are allowed UAE residencies and visa permits and also company premises to do business with UAE residents with some limitations.
There are three zones in Dubai and UAE which are considered as offshore areas. Ras al Khaimah(RAK), Jebel Ali free zone area (JAFZA) and Ajman offshore jurisdictions. Setting up an offshore company offers many benefits to its owners:
Maintenance of confidentiality: An offshore company owner need not disclose his/her name to the public. They can maintain anonymity while operating the business. There are no public disclosure agreements made with the company and none of the owners’ name is registered in the list.
An opening of bank accounts: multi-currency bank accounts can be operated by an off share company with no need to deposit a certain amount of capital in their accounts.
Tax-exempts: companies set up in offshore areas are exempt from all kinds of taxes including, VAT, income tax, corporate tax, personal tax, import and export tax exemptions.
Foreign ownership: offshore companies need not have a local Emirati as 51% owner in their company. Complete foreign ownership is allowed for expatriates. Repatriation of capital and profits without any limitation by the government can be carried out.
Virtual offices: An offshore company is allowed to pursue a virtual office with no need of renting or leasing a physical office in the area. The registered agent’s office is listed as the official company address in UAE records.