As global markets expand and businesses seek strategic advantages, setting up an offshore company in Dubai has emerged as a compelling option. This guide delves into the intricacies of offshore business setup services in Dubai, exploring the benefits, procedures, and opportunities associated with it.
Advantages of Company Formation in Dubai
Dubai's economy offers several unique advantages that make it particularly beneficial for company formation, especially compared to other regions. Here are some key highlights:
- No limitation on Visa
- Beneficial Tax Incentives
- Easy Office Space Availability
- Hassle-free Immigration Process
- No limitations on global recruitment
- Quick and easy process of business setup
- Numerous designated free-zones facilitating streamlined business operations.
- Exceptional opportunity for business expansion and diversification due to the dynamic market environment.
- Mainland company ownership can help you get opportunities for taking up government projects.
- For a freezone business, a UAE national sponsor is not mandatory. Irrespective of the nationality of the investor, foreign ownership is possible.
Jurisdictions for Company Formation in Dubai
Dubai offers various jurisdictions for company formation, each tailored to specific business needs. The three primary zones are:
1. Mainland
Mainland companies have full access to the UAE market and can conduct business locally with Emirati companies.
2. Free Zone
Free Zones are designated economic areas with specific industry focuses. They offer attractive benefits for international businesses, often specialising in sectors like technology, finance, or logistics.
3. Offshore
Offshore companies are ideal for international business activities conducted outside the UAE. They cannot directly trade within the UAE.
Each jurisdiction has its set of distinct advantages. Choosing the right jurisdiction depends on your business goals and must be done after carefully considering the advantages.
The next section focuses on each of the jurisdictions in detail.
Mainland Company
A Dubai mainland company is an onshore entity officially registered with the relevant government authorities. This type of business setup in Dubai has the flexibility to conduct business activities throughout the United Arab Emirates without encountering any restrictions.
The Department of Economic Development is responsible for issuing trade licences for businesses operating on the mainland.
Benefits of Mainland Company Formation in Dubai
Companies operating in the mainland can avail the following benefits
- Freedom in selecting an office location anywhere in Dubai
- Easy and hassle-free incorporation process
- Complete repatriation of profits and capital
- Option to open multiple branches
- No minimum capital requirement
- No restriction on currency
- Vast trading opportunities
Freezone Company
A freezone company in Dubai is established within a specialised jurisdiction governed by its own set of rules, regulations and advantages. Oversight is provided by the Free Zone Authority. As of March 2024, there are approximately 28 free zones operating across Dubai.
Types of Freezone Companies
An offshore business setup in Dubai in the free zones can benefit from three distinct types of business entities. They are -
1. Free Zone Establishment (FZE)
An FZE is a type of business setup in Dubai that is a limited liability company with one shareholder. It's a popular option for sole proprietors seeking to establish a business presence in a Dubai Free Zone.
2. Free Zone Company (FZC)
An FZC is also a limited liability company but it allows for two or more shareholders. It offers more flexibility for ownership structures than an FZE.
3. Branch Office
This is not a separate legal entity. It's an extension of an existing company, typically headquartered outside the Free Zone, that operates within a Dubai Free Zone.
Benefits of Freezone Companies
For an offshore company formation in Dubai, freezone business setup is one of the most profitable options for investors and business owners due to the following benefits
- Strict confidentiality laws
- Total Repatriation Benefits
- Complete foreign ownership
- No strict currency regulations
- Hassle-free immigration process
Offshore Company
An offshore company setup can be defined as one established outside the UAE mainland and free zones. These entities are created with the intention of conducting business activities beyond the jurisdiction or ownership location where they are registered.
Advantages of Offshore Company
- Favourable tax incentives
- Business-friendly environment
- Strong network with the global market
- Protection of assets and confidentiality
- Easy access to state-of-the-art infrastructure
- Strategic location that is favourable to businesses
Why choose BSW?
So far, we have highlighted the important aspects of business setup service in Dubai that can be availed. In order to set up a company in any of the jurisdictions of Dubai, call us today to book a free consultation and gain insights into the legalities and procedures associated with offshore company formation in Dubai.
1. What is the business scenario in JAFZA?
8,700 business companies are there in JAFZA.
2. How many days does it take to get the pre-approval for an offshore bank opening in Dubai?
15-20 working days.
3. What is the cost of assistance in opening an offshore bank account in Dubai?
AED 2,950.
4. Do I have to be present during the offshore company incorporation process in Dubai?
Yes.
