Dubai, the largest and the most populous city in the United Arab Emirates (UAE). It emerged as the cosmopolitan city and business hub of the Middle East. Dubai is a major transport hub for passengers and cargos. It is a very promising city in terms of business. It wouldn’t let the businessman go unsatisfied and offers great opportunities as well. One just needs to be right in knocking the correct door of opportunity. Since it has started showing the economic stability in the international market, no wonder so many people look for business opportunities here. Out of all the business opportunities, a formation of offshore company in Dubai is one of the riskiest but fulfilling one.
OFFSHORE COMPANY FORMATION
Well, this is a real and a big step if you have decided to form an IBC company in Dubai. To begin with, it is very essential to understand and know that the Jebel Ali Free Zone is the supervisory authority for Dubai offshore company incorporation. This Free Zone authority takes care of everything and guides to the formation of the offshore company. No individuals or corporates are allowed to set up the company directly. Only and only a registered agent can be the one in setting a company offshore. This is the primary and the most important rule. Not only this, the Free Zone has its own registered agents and uses their office address.
If you are planning to set up a company in Dubai do read this also: Read More: IMPORTANT STEPS FOR COMPANY FORMATION IN DUBAI
FEATURES OF AN OFFSHORE COMPANY
⦁ The company is an L.L.C.
⦁ Tax-free offshore company.
⦁ Bearer shares not allowed.
⦁ Multi class shares are not allowed.
⦁ Must have an approved registered agent.
⦁ Requires at least 1 shareholder, 1 secretary, 1 manager, and 2 directors.
⦁ Requires having accounts audited on annual basis.
ADVANTAGES OF OFFSHORE COMPANY FORMATION
There are a lot of advantages of setting an offshore company. Few are listed below:
⦁ The offshore company registration in Dubai is 100% tax-free. Therefore, tax optimization is there.
⦁ “Hold your asset and protect it.” Asset holding is one of the great merits that the company offers.
⦁ No foreign currency restrictions.
⦁ The cost involved in setting a company is low.
⦁ Dubai offshore companies fully secure. Thus, security issues are taken well care of.
⦁ No office is required. It is not mandatory to have an office.
⦁ Due to the offshore company, there is the exemption from all the import duties.
ACTIVITIES RESTRICTED TO DUBAI OFFSHORE COMPANY
⦁ No business activities are allowed inside UAE. The reason for this is because the company is non-resident.
⦁ The company cannot buy or hold properties outside the free zone area. It cannot own a real estate property.
⦁ The company is not allowed to do any business with the insurance company.
⦁ No business related to banking is allowed.
⦁ The activities which are banned cannot be the business of the company.
REGISTER DUBAI OFFSHORE COMPANY
Jebel Ali Free Zone is a large commercial plot and the business hub, located on the southern outskirts of Dubai. It is the regulatory authority that keeps an eye on all the processing related to the incorporation of the offshore company in Dubai. It is responsible for all the actions. It has laid down some rules and regulations which must keep in mind. It can take stringent actions whenever any suspicious activity occurs.
The only thing that is most crucial is that the formation of an offshore company cannot take place without the registered agents. The most important work for the client is to contact either the agents or the subagents. JAFZA cannot be directly contacted by the clients for the setting of Dubai offshore company. The agents offered by JAFZA takes care of everything regarding the process and procedure. A lot of efforts is required to set up an offshore company in Dubai. Paperwork that needs to be done is very lethargic. The agents take care of the business consultancy services, legal services, and advisory services too.
There are few merits and restrictions that one needs to keep in mind to set up an offshore company. It might be a little difficult at the start but then eventually everything will be sorted. Remember to abide by the rules and take each step ahead in a very legit manner. Take the risk and seize the opportunity!