Offshore Company Formation in UAE

The word offshore literally means a location that is situated outside the national boundaries of the place of one’s permanent residence. Offshore Company also often referred to as an International Business Company is a legal entity that is incorporated in a foreign country other than that of the company’s principal’s residence, i.e. shareholder, director, owner, partner etc.

An International Business Company or Offshore Company is a legal entity (usually a holding structure) without the ability to conduct any sort of substantial business activity within the country of incorporation. An offshore company is often incorporated to reap benefits usually not available in the country of residence. These include advantages such as tax savings, tax efficiency or optimisation, asset protection from lawsuits, or merely to increase the opportunities for foreign business.

Among the numerous advantages an Offshore Company formation in UAE has to offer, it is incorporated mainly for international trading, protection of assets, tax planning, purchasing or holding real estate properties in the designated areas of UAE, acquisition of shares of other companies, trust funds etc. Least should there be a doubt on criminal activity, the identity of the beneficiary is kept strictly confidential and anonymous by law. It is possible to open and maintain a bank account with an offshore company in the UAE, and the company may either choose to be governed by the UAE law or by that of the applicant’s country. Other benefits are as listed below;

• 100 % Foreign Ownership
• Tax Efficiency
• 0% Personal or Corporate tax in the UAE
• Cost-effective and easy incorporation process in the UAE
• Open Multi-Currency Bank Account
• Reduce Operational Cost
• No minimum share capital required
• Conveniently transferable shares
• Limited Liability Company, i.e. limited to the shares in the capital of the company.
• Better access to International funding
• Access to an optimised business-friendly legal system

There are currently three offshore jurisdictions in the United Arab Emirates. ADAM Consulting is an award-winning registered offshore agent for all three.

To register an offshore company in the UAE, the applicant who is either natural or juristic must submit, along with other supporting documents, a duly signed application form to the offshore company’s registrar.

The application form contains information on the proposed capital. The application form will require the shareholder’s full name and addresses as well as the number of shares held by each along with their proposed value. The shareholder may decide to either nominate minimum one director who can be from among them or appoint an outside individual. The application is to be submitted along with the company’s proposed memorandum and articles of association.