Offshore Company

Offshore Company 

An Offshore Company is a legal business entity that is set up with the intention of operating outside its registered jurisdiction and/or the location of its ultimate ownership.

There can be many reasons to register an Offshore Company, but the general benefits of an offshore company include:

1. 1. Providing a gateway for international market expansion;
2. 2. Access to a stable and business-friendly legal system;
3. 3. Access to a more flexible regulatory regime;
4. 4. Offering tax neutrality on international earnings in respect of (depending on jurisdiction) personal or company income, capital gains and inheritance taxes;
5. 5. Offering better access to global funding;
6. 6. Providing a vehicle to separate or protect assets, such as Intellectual Property, from operating entities.

The two principal jurisdictions offering Offshore Companies in the UAE are Ras Al Khaimah (RAK) and the Jebel Ali Free Zone (JAFZA). Both are “tax free” jurisdictions that levy no income tax or corporate tax and permit 100% foreign ownership. 

Offshore Companies are permitted to open multi-currency accounts in the UAE and carry out business internationally. They may not, however, carry on business with persons resident in the UAE or have physical premises within the UAE.

Both RAK and JAFZA have their own specific benefits. RAK is the more cost effective of the two, but JAFZA is the only Offshore Company that is legally permitted to own property situated in Dubai.

As a matter of local company law, both RAK International Companies (RAK ICs) and JAFZA Offshore Companies MUST appoint an approved registered agent (Sovereign Corporate Services is approved for this purpose).

Documents required for Offshore Company set-up in UAE from all shareholders and directors:

• - Certified Passport Copy (by Lawyer/Accountant/Sovereign Employee)
• - 2 x Proof of Address documents
• - Bank or Professional Reference Letter
• - Curriculum Vitae (summary of professional history)
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