Legal Consulting

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.

Apart from the above-stated benefits, opening an offshore company in Dubai can also give you many other benefits like:

  • Ease of global funding

  • Protection of intellectual property

  • International business expansion

  • Stable and business-friendly legal system

  • Tax neutrality on international earnings

Jebel Ali free zone area: also known as JAFZA was established in 1985 with a primary aim of attracting foreign investment to the land of Dubai. In 2003, it was established as a free zone.  As of 2017, it has established itself as the top trade and logistics hub in the region at the value of 83.1 billion dollars.

According to Arabian Business, 77% of trade volume generated in this zone came from:

  • Oil and gas
  • Foodstuff: livestock and agricultural products
  • Metal, steel and construction materials.

The major countries forming their company branches in JAFZA are from China, US. India, Vietnam and Saudi Arabia.

It is the only among three offshore areas whose companies are allowed to own land in Dubai either directly or via a company’s name. They are also allowed to have shares in the local companies.

Once you register your company in JAFZA, you have legal status to carry out business in the middle east. With the ease of banking, legal, financial and insurance services, it gets simpler to carry out business from JAFZA.

There are three types of companies you can open in JAFZA; they are:

  • A single shareholder company
  • Multiple shareholder companies
  • A subsidiary company.

The documents required to open an offshore company includes:

  • Bank reference for each individual
  • The shareholders’ Passport copies
  • Utility bills of the country of residence; and
  • Application form

An official registered agent of JAFZA is required to submit your application for the registration process.

 

AJMAN offshore company:  it is a relative new zone formed in 2014. Registering a company is simpler and much faster when compared to other jurisdictions.  Presence of only one director is sufficient to register the company. They need not have Dubai resident visas and are also not given visas for directors and shareholders of the company. There is also no requirement for having a real office or an industrial premise in Dubai for starting a company in AJMAN jurisdiction.

Companies in AJMAN are divided into these major groups: retail and wholesale, real estate, business services, manufacturing and construction, communication and transport storage. Manufacturing and construction are the forerunners in providing the 87% of GDP of this jurisdiction.

Apart from these companies, the other entities allowed in AJMAN offshore jurisdiction are:

  • Advertising
  • Shipping and ship management
  • Holding company
  • International services
  • General trading
  • Consulting services

The documentation needed to open an offshore company in AJMAN jurisdiction are:

  • Passport copies of the owners
  • Bank reference
  • Company owner’s proof of residence
  • Memorandum of association
  • Article of association
  • Owner’s resume
  • Business plan with cost-benefit analysis
  • Application form

RAK International Business Company:  It was established in 2006 and is one of the fastest growing offshore zones. It has a state of art banking facilities to cater to its expatriate clientele. It provides by far the most confidential operations of a company by its owners. Apart from zero tax and privacy, a RAK international business company have benefits of opening a company with a minimum of one director and one shareholder. Time of registration is one to two weeks

A RAK international business company is purely a nonresidential company, created mainly to protect intellectual property and operate in a tax-free zone to carry out business in the middle east.

The companies operating in RAK include holding companies for international assets, online companies, professional services like lawyers and accountants, consulting services, investment services, general trading, and advisory.

At Quanet solutions, we help you in the following ways for setting up an offshore company in any of the three offshore jurisdictions of the UAE:

  • We set up the groundwork for registration
  • A registered agent is mandatory for submitting an application form
  • The registered agent’s address is used as the official company address of an offshore entity.
  • We prepare all the documents needed
  • Arabic translation of the legal documents
  • Organizing the paperwork for any legal disputes arising in the company
  • Setting up with lawyers and legal consultancies in times of need
  • Auditing and maintaining financial records of the company
  • Ensuring that you follow all the compliance set up by the UAE government.

Though the United Arab Emirates provide you with bountiful benefits for business operations and tax exemptions. The non-compliance with the government laws can earn you the same level of penalties and recur percussions. To warrant you don’t lack in any area while setting up your business in Dubai, allow us to help you in your company formation without any difficulty.