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Legal Framework for Offshore Company Formation in the UAE
The United Arab Emirates provides a secure and business-friendly environment for offshore company formation, governed by a robust legal framework. This includes federal legislation along with specific regulations enforced by individual jurisdictions across the UAE.
Federal Legislation
- Federal Decree-Law No. (32) of 2021 on Commercial Companies: This serves as the core legislation for company formation in the UAE, encompassing offshore company structures.
Jurisdictional Regulations
Each offshore jurisdiction in the UAE operates under its own regulatory framework:
- RAK International Corporate Centre (RAKICC): Offers a streamlined setup process and cost-effective offshore solutions.
- Abu Dhabi Global Market (ADGM): Provides a common law legal environment and access to international markets.
- Dubai International Financial Centre (DIFC): Renowned for its advanced legal framework and international business support.
Benefits of Forming an Offshore Company in the UAE
- Tax Advantages: No corporate or income taxes across key jurisdictions.
- Full Foreign Ownership: 100% foreign ownership permitted in all offshore jurisdictions.
- International Business Access: Facilitates global trade with multi-currency bank account options.
Key Considerations
- Local Business Restrictions: Offshore companies are not permitted to operate directly within the UAE domestic market.
- No Physical Office: Offshore entities cannot establish a physical office within the UAE.
At Zionuae Chartered Accountants, we offer expert advisory to help you choose the right jurisdiction and navigate the offshore company setup process with ease and compliance.
Types of Offshore Company Structures in the UAE
The UAE offers a range of offshore entity types to meet various business objectives:
- Limited Liability Companies (LLCs): Provide liability protection to shareholders.
- Private Limited Companies: Similar to LLCs but governed by stricter corporate regulations.
- Holding Companies: Ideal for managing assets and subsidiaries globally.
- Special Purpose Vehicles (SPVs): Designed for specific financial or investment purposes.
Requirements and Eligibility for Offshore Company Formation
Basic requirements to establish an offshore company in the UAE include:
- Shareholders: Minimum of one individual or corporate shareholder.
- Directors: At least one director is required.
- Registered Agent: A UAE-based agent is mandatory in the chosen jurisdiction.
- Jurisdiction-Specific Conditions: Each jurisdiction may have its own set of additional regulations.
Compliance & Reporting for Offshore Companies
All offshore entities must adhere to the following compliance obligations:
- Accounting Records: Maintain accurate and updated financial records.
- Annual Audits: May be required depending on the jurisdiction.
- Beneficial Ownership Disclosure: Mandatory under UAE transparency regulations.
- General Compliance: Zionuae Chartered Accountants ensures your business remains compliant at every step.
Reach out to us for tailored guidance and seamless offshore company formation.
Choosing the Right Offshore Jurisdiction in the UAE
ADGM Offshore Company
- 100% Foreign Ownership
- Tax Exemption
- English Common Law Legal Framework
- Access to Global Markets
DIFC Offshore Company
- Full Foreign Ownership
- No Corporate or Income Taxes
- Independent Legal System
- Premium Infrastructure
RAKICC Offshore Company
- 100% Foreign Ownership
- Can Hold Shares in UAE Free Zone & LLC Companies
- Multi-Currency Banking
- Cost-Efficient Setup with Quick Registration
Trusts and Foundations
Zionuae offers bespoke trust and foundation solutions for wealth and succession planning. Benefit from strong legal protection and favorable tax environments through RAKICC, ADGM, or DIFC jurisdictions.
- Comprehensive setup and documentation
- Ongoing management services
- Legacy and wealth protection strategies
SPVs & Holding Companies
Zionuae facilitates the setup and management of Special Purpose Vehicles and Holding Companies to help optimize your investment and corporate structures.
- Establishment in ADGM or RAKICC
- Asset and risk management
- International tax planning
Partner with Zionuae Chartered Accountants for comprehensive support in setting up your offshore entity in the UAE. Let us simplify the process while ensuring full legal compliance and operational efficiency.
Key Considerations for Offshore Company Formation
Selecting the right jurisdiction within the UAE is important, considering regulatory environment, setup costs, and specific benefits of each free zone.
Opening Bank Accounts and Access to Financial Services
Establishing a corporate bank account is essential. The UAE’s robust banking sector caters to offshore companies with numerous local and international banks. Having a registered corporate service provider is key to supporting you in opening a corporate bank account for your offshore company. Here is a breakdown of the process:
Eligibility
- Most jurisdictions in the UAE (RAKICC, ADGM, DIFC) allow offshore companies to open corporate bank accounts.
Requirements
- Certificate of Incorporation
- Memorandum & Articles of Association
- Beneficial ownership information
Choosing a Bank
Different banks offer varying account features and fees. Zionuae Chartered Accountants can assist you in selecting a bank that best suits your business needs.
Important Considerations
- Due Diligence: Banks conduct thorough due diligence procedures. Ensure your documentation is complete and compliant.
- Account Features: Not all features may be available for offshore accounts. Discuss specific needs with your bank.
Benefits of a UAE Offshore Bank Account
- Multiple Currencies: Manage finances in various currencies, enabling global transactions.
- Simplified Transactions: Streamline business payments and receipts worldwide.
- Enhanced Security: Leverage the UAE’s secure and reputable banking system.
Nominee Services and Corporate Governance
Using nominee services for directors and shareholders enhances privacy and streamlines corporate governance.
Real Estate Ownership and Investment Regulations
Offshore companies in the UAE can own property and invest in real estate, subject to specific regulations depending on the jurisdiction.
Process of Setting Up an Offshore Company in Dubai & the UAE
- Choose Your Business Structure: Select the most appropriate structure for your offshore company.
- Open an Offshore Bank Account: Gather required documents including:
- Director’s registration
- Incorporation certificate
- Financial statement
- Proof of registered address
- Shareholder certificate
- Cost of Establishing: Varies based on company type, required services, and service provider fees.
Note: This guide offers a broad overview. It is advisable to seek professional guidance to ensure a smooth and compliant offshore company formation process in Dubai and the UAE.