Trade and business outperform when elevated abroad, especially in Gulf Countries like the UAE. Many have treaded on this path and have reached heights in the field of commerce. A country like UAE has a lot to offer and thus, it reaches out to cater to the interests of its foreign investors so that a mutual bonding could benefit both the ends of the agreement. UAE warmly welcomes investors to trade in their province; however, there is a legal procedure which every business owner needs to follow before entering the confines of the UAE for a company set.
Below is a list of criteria which you need to follow to abide by the Process of Offshore Company Setup in UAE:
- Firstly, you have to select a name for your company by which it will be recognized. You can go for some unique and striking options instead of going with the obvious. Avoid using the name of the services which you are going to serve the inhabitants with and instead emphasize the use of “limited” or “incorporated” as tails of your company names.
- Secondly, you will have to file in an application form stating your business setup idea and by producing the required credentials like an attested copy of the passport, residential proof, bank details, details of the owner or the shareholder, beneficiaries and their hierarchical order, etc. The application would require you to fill in all the details (like name, budget, financial goals, etc.) regarding your business setup and how you are planning to execute it in the country.
- Thirdly, the authority whom you have contacted for registering yourself as a trader must be provided with the application form which you have filled in for a review. Once the form is accepted and approved, you can start conscripting a Memorandum of Association, also known as MoA, which should comprise of articles and memorandums written in English for maintaining international business relations with the country.
- Fourthly, you can start your business offshore officially after getting the approval from the authorities stating that the documents you have produced are all reviewed and verified as per the guidelines stated by the Government of UAE.
- Lastly, you will have to apply for opening an offshore bank account as soon as you are registered in the UAE.
Process of Offshore Company Setup in UAE – Benefits meted out to the traders
Running an offshore company could benefit you in many ways such as:
- You are exempted from payment of any taxes or customs duty to the Government
- You get the privilege of acquiring the complete percentage of the profits earned
- Guaranteed ownership as a foreign investor or dealer is permitted
- Documents of a single shareholder or manager are enough to get your offshore company setup registered in the country
- Capital raised for the company can be evaluated in any currency
- You are not liable to deposit your income or profit in the bank account
- Privacy is maintained, thereby benefiting the shareholders
- Setting up an offshore company eases the process of opening a corporate bank account.
Note that, the Process of Offshore Company Setup in UAE clearly states that foreign investors seeking offshore business setup can only run their company within the confines of the banking sector and the real estate segment. These offshore companies do not possess the liberty to freely trade in the onshore market of the country like the companies in the free trade zone. Also, the company holders of the offshore business cannot acquire a residency visa in the UAE.