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UAE Offshore Company Formation

The formation of offshore companies in the offshore jurisdiction of UAE began when the proper legislation was put in place. The UAE has a well established offshore financial centre and also provides top quality offshore banking service to clients from Europe, the United States of America and many other countries around the world. The UAE offshore companies are easily formed by top offshore service providers in the jurisdiction. The offshore companies formed in tax haven UAE can be used for conducting business around the world. UAE offshore companies make for very good trading companies which can also be used in estate planning or for asset protection.

Offshore company formation in the tax haven of the UAE is carried out according to the stipulations of UAE’s of legislation which was passed as recently as 2003 in the Jebel Ali Free Zone. The laws which governs the offshore formation of companies in the tax haven of UAE states that in order to form an offshore company in the jurisdiction the services of a registered agent must be hired. The process of offshore company formation in the tax haven of UAE can be completed in two (2) days or less.

For offshore incorporation in the tax haven of UAE a Memorandum of Association and Articles of Association must be submitted to the Registrar of Companies. All documents which are submitted to the authorities in UAE for offshore company formation must be notarized by a recognized lawyer or a bank in the territory. The information which is normally filed with the registrar of Companies for offshore company registration in the jurisdiction is the following:

  • The proposed name of the company
  • The business operation the company will take on once incorporated
  • The purpose for forming the offshore company in the jurisdiction
  • The name and address of the registered agent
  • The registered address of the offshore company in UAE
  • The names and addresses of the subscribers of the company
  • The names and addresses of the company directors
  • The names, addresses and nationality of the shareholders of the offshore company
  • The authorized share capital of the company
  • the currency in which the authorize share capital will be issued
  • the types of shares to be issued by the offshore company
  • the by –laws of the corporation

UAE offshore business formation can be realized using just one (1) shareholder. The maximum number of shareholders which can be used for offshore company formation in the tax haven is fifty (50). No are no restrictions as to the nationality of the persons who can incorporate UAE offshore companies. The minimum number of directors needed for the incorporation of a UAE offshore company is two (2). Directors as well as shareholders for a UAE offshore company must be individuals, corporate shareholder and directors are not accepted. Offshore companies incorporated in UAE at one point are required to appoint a company secretary who must be a natural person.

When forming an offshore business in the offshore jurisdiction of UAE person must take note that the minimum authorized share capital of the corporation can be established by the persons who have interest in forming the company. Most UAE offshore companies formed normally start with an authorized share capital of US$1000. The formation of offshore companies with different classes of shares is not permitted in UAE tax haven. UAE offshore companies cannot issue bearer shares.

The offshore companies formed in the tax haven of UAE are Limited Liability companies and therefore need to show that they are such by adding the term Limited Liability or Limited or its abbreviation. UAE offshore companies can only conduct the business operations that they were license for upon company formation. UAE offshore companies cannot use the following words or operate the following businesses in the offshore jurisdiction; Bank, Reinsurance, Insurance, Investment Fund Management, Building Society, Cooperative, Chamber of Commerce and Assurance among others. The names of offshore companies formed in the offshore jurisdiction of UAE must not portray any association with the government of the territory or institutions such as universities.

UAE offshore companies have the advantage of operating tax free. Offshore companies incorporated in UAE are exempted from all forms of local taxation if all its incomes are earned outside of the tax haven. A UAE offshore company pays no capital gains tax, withholding tax, gift tax or estate tax in the offshore jurisdiction. UAE offshore companies are exempted from Value Added Tax (VAT) and inheritance tax on assets. Offshore companies incorporated in UAE are allowed maximum privacy by the law. Offshore companies incorporated in UAE have no need to file annual returns to the tax authorities in the tax haven. The financial records of a UAE offshore company can be kept anywhere in the world. UAE offshore company formation presents many benefits including reducing tax liabilities. UAE as a tax haven is one of the most progressive states in the United Arab Emirate. The territory boasts of a thriving economy thanks to a very vibrant tourism industry. The tax haven of UAE has very modern legislation and the government of the territory has over the years shown much interest in keeping the offshore sector alive in the offshore tax haven.

Offshore company formation in the tax haven of UAE guarantees privacy for the shareholders. The information concerning offshore companies shareholders in tax haven UAE is not made part of public records in the jurisdiction. The list of UAE offshore company directors does not become public record. The annual financial statements of UAE offshore companies along with companies’ activities remain known to company officers and shareholders. The formation of offshore companies in the offshore tax haven of UAE results in companies which are free to do business in the Jebel Ali Free Zone. These companies can be used for trading in countries around the world. UAE offshore companies provide excellent asset protection and reducing tax liability.