To have an own business in the territory of one of the most prestigious states of the world in terms of business activities – the United Arab Emirates – is an attractive prospect for every ambitious entrepreneur aimed at success. It is not an easy task to open a company outside the country, however, having studied the legislative base concerning the conduct of business in a certain state by foreigners, and having become acquainted with all possible options for conducting commercial activities, it is quite possible to bring it to life.
The business niche of the United Arab Emirates provides ample opportunities for modern entrepreneurs. In particular, local offshore zones provide an opportunity for international company’s operational registration, providing it with all the conditions for profitable implementation of activities.
Company’s registration in offshore areas of the United Arab Emirates
The principle of offshore organizations existence in the Emirates is as follows: the company is registered by the state structures and receives all the privileges that are represented by this legal status. It is provided with attractive terms from the point of view of taxation, as well as legal protection from the state and complete confidentiality. In addition, the offshore companies’ registration in the UAE provides their owners a number of other attractive opportunities:
- Property and business rights protection.
- Transparent registration procedure, which is why the UAE’s offshores do not reside in the «black» and «gray» lists, like many other offshore jurisdictions.
- Competent costs optimization.
- The absence of need to maintain a detailed accountability of activities and to provide it at the request of government agencies.
- The opportunity to avoid many bureaucratic procedures.
- Anonymity and protection of personal information about the owner and nature of the company.
The offshore companies’ registration in Dubai gives the right to own 100% of shares by the foreigner, does not require the presence of resident status, and payment of the authorized capital. In addition, there is almost no control over foreign exchange transactions, and financial reporting is not required. It should also be emphasized that owning a company in the UAE offshore zone allows owning a bank account in the local or international banks, which makes the United Arab Emirates stand out among other areas with offshore status.
Offshore companies registered in the United Arab Emirates do not have the right to operate within the state, rent office space, since the organization’s legal address is the registration agent’s address. The offshore companies’ registration in Dubai does not give owners the right to claim a resident visa and cannot be the reason for issuing a residency certificate.
Differences of the offshore companies in the United Arab Emirates
The main feature that differs Emirate’s offshores from other international offshore jurisdictions is the transparency and simplicity of the company registration process. All data on the beneficiary and the activities of the organization are stored in closed registers, which allows providing a full confidentiality and security for the business owner. Personal information can be provided to third authorized parties only if there is a judicial decision.
Nominal services are not applied in the United Arab Emirates at the legislative level.
It is also worth emphasizing that the UAE does not practice the purchase or sale of the ready-made offshore companies or Shelf Companies. Since the organization is immediately registered with a particular beneficiary, whose name is fixed in the company’s charter, which is signed by the owner, the preliminary creation of «shelf companies» is not applied.
Currently, several offshore territories, concentrated in the emirates of Dubai, Ajman and Ras Al-Khaimah, operate on the territory of the UAE. The cost of the registration procedure, as well as the processing and drawing time for all documentation, directly depend on the selected region. In addition, based on the place of registration, the list of required documents may slightly vary.
An approximate package of documents that should be submitted for the offshore company’s registration in the Emirates is as follows:
- The founder’s/director’s passport copy.
- A document provided by a banking structure that confirms personal account existence.
- A document confirming the shareholder’s home address. In most cases, it is enough to provide a receipt for utility bills for the last 2 months.
Please, also note that, in most cases, a personal visit for signing documents before a registration agent is not required and may only be required at the registration authority’s request.