OFFSHORE COMPANY FORMATION IN UAE

An offshore company is defined as a company incorporated outside the jurisdiction where the beneficial owner resides. Unlike traditional onshore companies, offshore companies are often established in foreign jurisdictions. The term "offshore" contrasts with "onshore" and can sometimes be confusing.

While a common myth is that offshore companies are used to evade taxes, the reality is that they are designed to safeguard clients' interests and assets.

How Do Offshore Companies Work?

An offshore company is a legal entity set up primarily to protect assets and facilitate succession planning. These companies are allowed to trade, hold assets, and conduct business legally outside their jurisdiction of incorporation. Offshore countries provide a robust tax structure with a multi-fold governance framework.

Benefits of Having an Offshore Company

Offshore companies offer numerous benefits for business owners:

• Greater Asset Protection
• Privacy
• Legal Protections
• Simple Governance Structure and Corporate Policies
• Ease of Operations

Top Offshore Company Jurisdictions

• UAE
• Mauritius
• Cayman Islands
• Hong Kong
• Cyprus

The United Arab Emirates: A Popular Offshore Jurisdiction

The UAE has become a preferred destination for business owners and entrepreneurs due to its stable and tax-friendly environment. The UAE is known for its compliance with international anti-money laundering regulations and has never been blacklisted. The country does not have a directive agreement with the OECD (Organization for Economic Co-operation and Development), making UAE offshore companies one of the best for confidentiality and investor protection. Additionally, the UAE offers a reliable banking system for offshore businesses.

RAK International Corporate Centre (RAK ICC)

Ras Al Khaimah (RAK), located about an hour's drive from Dubai, is one of the fastest-growing Emirates. The RAK ICC, established in 2006, is renowned for incorporating offshore companies. Key features of RAK ICC include:

• No requirement for local shareholding
• Ability to establish foundations or trusts
• Enhanced governance structure
• Succession planning and asset protection
• Ability to buy shares in local UAE companies
• Multi-currency offshore bank accounts in the UAE
• No annual audit report required

Procedure to Start an Offshore Company in RAK ICC (UAE)

Starting an offshore company in the UAE involves a straightforward process that can be completed in a few weeks:

1. Select a Company Name: The name must not include specific words such as Insurance, Bank, or Trust. The name should end with "Ltd" or "Incorporated."
2. Fill an Application: Submit relevant documents including identity proof, address proof, CVs of shareholders and directors, a business plan, and photocopies of documents. The submission requirements vary between individuals and corporate entities.
3. Submission of Documents: The authority will review the documents and issue approvals.
4. Draft the MOA and AOA: Prepare the Memorandum of Association (MOA) and Articles of Association (AOA) in English. These documents are reviewed and approved by the authority.
5. Open an Offshore Bank Account: Open an offshore bank account to facilitate business transactions. Offshore jurisdictions also offer the option of anonymous accounts.
6. Local Offshore Agent: A registered local offshore agent under RAK Offshore Authority is required.
7. Minimum Share Capital Required: There is no minimum share capital requirement for setting up an offshore company in the UAE.

Why Choose an Offshore Company?

Forming an offshore company in the UAE offers a tax-free business environment, 100% foreign ownership, and excellent asset protection and privacy. A well-structured advisory will help address the specific needs of your business, considering size, objectives, and other factors.

Water and Shark, a global advisory firm specializing in Structural Advisory, International Corporate Law, Tax and Regulatory Services, and Accountancy, is here to assist you with all procedures for setting up an offshore company in the UAE. Our experienced team is dedicated to delivering world-class services tailored to your requirements.

Contact Us for More Details

Phone: +91 8655109911

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Website: www.waterandshark.com