26 10 2020

Features of an offshore company formation in the UAE

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Today we will tell you about the distinctive features of offshore companies in the UAE.

Offshore companies in the United Arab Emirates can carry out their activities outside the UAE and only within the free economic zone in which they are registered. The company's office cannot be located in the UAE, the number of owners can be from one person.

There are no trade rights in the territory of the United Arab Emirates, but trade is possible with virtually any country in the world. At least one shareholder and one director is required. It should be noted that there are several limitations:

- Registration of a company as offshore is prohibited for several sectors of the economy: for insurance, financial and banking sector.

- There are no rights to own real estate inside the Arab Emirates if the objects are not located in the territory approved by the authorities.

Allowed:

- Not to keep accounting records;

- To open an account in a local or international bank;

- No need to have a residency to open an offshore;

- No need to present physically for offshore registration;

- Repatriation of 100% of the profits;

- To carry out trading activities within the FEZ or in other parts of the UAE by having an appropriate license.

What are the goals pursued in case of opening an offshore company in the United Arab Emirates?

This type of company is most often chosen by investors who want to take tax advantages and conduct business in the international market. Large businessmen have a single goal - to protect the assets of investors and strengthen or optimize wealth management. Instead of a special license, a registration certificate is issued.