Company Formation in Dubai Offshore
An Offshore Company is a legal business organization that is set up with the intention of operating outside its registered jurisdiction and/or the location of its ultimate ownership. They should not be confused with UAE Free Zone companies.
The following are some of the benefits of utilizing an offshore corporate structure include-
Provides a gateway for international market expansion.
Access to a more flexible regulatory region.
Access to a stable and business friendly legal system.
Offering better access to global funding.
The two main principal jurisdictions that offer Offshore Companies in the UAE are Ras Al Khaimah (RAK) and the Jebel Ali Free Zone (JAFZA). Both the free zones are “tax free” jurisdictions that impose no income tax or corporate tax and also allow 100% foreign ownership. The UAE has Double Tax Treaty agreements with over 40 countries.
Offshore Companies are allowed to start their own multi-currency accounts in the UAE and work out internationally. However, they may not be able to carry on business with persons resident in the UAE or have physical properties within the UAE.
RAK and JAFZA, both have their own specific benefits. RAK is the more cost effective when compared to the two, but JAFZA is the only Offshore Company that is legally allowed to own property situated in Dubai. UAE Offshore Companies should not be confused with UAE Free Zone Companies. Free Zone Companies are onshore organizations allowed to carry out business in Dubai with certain limitations.