Offshore Company in United Arab Emirates
Opening an offshore business in UAE is much different than incorporating an mainland company. In case you’re not sure at this step which one you need kindly study the following:
For mainland company procedures and benefits please click here.
International Business Company (IBC)
An international business company or international business corporation (IBC) is an offshore company formed under the laws of some jurisdictions as a tax-free company which is not permitted to engage in business within the jurisdiction it is incorporated in. IBCs are offshore companies that are most commonly used for offshore banking, to conduct international trade, investment activities, to offer professional services and for asset protection.
Name and company activities
The company name must not contain the following words and must not pursue with listed business activities: BANKING, INSURANCE and REINSURANCE.
The name of the company must end with “LTD” only.
The IBC company in RAKIA must maintain a local registered agents approved by the local authorities and a locale registered office which the registered agent provide.
There are NO corporate tax, personal tax, capital gains tax or VAT in the UAE with exception of oil producing companies and branches of foreign banks.
No taxation information exchange agreements with other countries.
Annual report – not required
Accounts must be audited and must be distributed to shareholders (but not filed). The accounting records may be retained wherever the directors choose.
Shareholders and Directors
Minimum one. No public register, but the registered agent must retain a shareholder register at the registered office.
Directors – minimum one director (corporate director’s allowed). There is no public register of directors, but the registered agent must retain a register of directors at the registered office
Local registered office is required.
Arbitrarily determined by the company owners. Recommended – 1000 AED.
However, there is no requirement to pay in the capital.
The documents could be notarized by a Notary Public Solicitor (“N”) or could be legalized or attested by a Ministry of Foreign Affairs in the country of the applicant and further stamped by the UAE OR Arab Embassy
Annual report – not required. Accounts must be audited and must be distributed to shareholders (but not filed). The accounting records may be retained wherever the directors choose.
In order to start with the procedure please provide us the following documents:
- Passport copy (Notarized)
- Proof of residence – 2 x utility bill, telephone bill (not older than 3 months, the original)
- Bank reference letter in English (the original) *
- Bank reference letter (the original)
- Name of the company (2-3 of your choice)
- Payment to the bank account of EURO COMMERCE LLC
In order to open a bank account, the following documents must be provided:
- Passport copy (verified in Barclays Bank) **
- Last 6 months’ original bank statements. Alternatively, copies can be downloaded in front of a Barclays bank employee, who will need to attest to the fact they are true copies of the original and sign and certify each bank statement
- Bank forms should be stamped and certified by Barclays bank agent
** Documents can be verified by local Barclays Bank branch
Advantages of forming company in the Dubai, UAE (United Arab Emirates):
- No taxes of any sort and no tax department (except for the oil producing Companies and branches of foreign banks)
- No filing of account
- No taxation information exchange agreements with other countries
- No public record of directors and shareholders
- Highly flexible and confidential banking system geared to the requirements of high net worth international investors
- Strong legislation which protects the confidentiality of investors.
The other benefits of an offshore company in the United Arab Emirates are that the state is white-listed, sovereign and an international platform for trading, consulting and commerce.
United Arab Emirates has some of the leading banks of the world in their list of investors and these banks have marked their prominence here in the city of Dubai. Some of the major banks are HSBC offshore, Abbey National Offshore, ABN Amro, Dresdner and Barclays. All these banks have their offices in the emirate and with the completion of the Dubai International Financial Centre or DIFC; Dubai is expected to make room for some more offshore branches of some of the world’s leading banks.
Offshore banking can simply be defined as banking activities carried out from any remote locations apart from the location where you live. Different individuals as well as corporate account holders have varied reasons to opt for offshore banking facilities and some of the common reasons are requirement of multi currency loans or for saving tax.
A Few Points to Be Noted:
- Offshore banking in Dubai is increasingly secure, reliable and stable.
- Opening an Offshore bank account in Dubai is very easy and it takes only about one week after incorporating your company.
- Investors who have undertaken Dubai offshore banking can easily track all their worldwide transactions through Internet banking. This facility is available with almost every offshore bank account in Dubai.
- Dubai offshore bank accounts do not have facilities of ATM, credit and debit cards.
- Offshore banking in Dubai allows flexibility with no restrictions over funds transfer.
If your new venture in UAE wants to get the best start, we will handle your enquiry from the outset, provide transparent advice and guide you through the entire company formation process to the point of incorporation, allowing you to get on with the business of running a business. Our team has a great depth of experience in forming companies in Dubai and all over the United Arab Emirates. We have over 15 years of experience in company formation, trademark registration and P.R.O. services.CONTACT US TO GET YOUR LICENSE