Unravelling the Complexity of Dubai Offshore Company Formation

Summary: How an offshore company in Dubai can be the most attractive form of tax efficient corporate structure in the world

The thought of creating some form of offshore company in a country like Dubai - which has well publicised taxation benefits, which is not on any OECD, UN or EU unfair tax advantage blacklist and which has attractive and beneficial taxation treaties with many nations around the world – is initially very attractive indeed.

However, dig a little deeper and then on the face of it establishing an offshore company in Dubai actually appears to be complicated, dogged by restrictions and expensive – but as this article will reveal, unravelling the complexity of Dubai offshore company formation need not be so difficult and yes, you can potentially create an attractive and cost efficient entity which is extremely useful for personal and corporate tax planning purposes.

If you’re interested in forming an offshore company in Dubai, upon initial investigation you will no doubt come across a certain amount of information that suggests you require a Limited Liability Corporation, a Professional Licence or a Representative Office. 

However none of these entities allows for full foreign ownership or removes the requirement of at least having a UAE resident appointed as a service agent for example. 

Just take a look: -

Limited Liability Corporations in Dubai - these are actually a form of JV between a foreigner and a local UAE citizen.  The foreign party can only own up to 49% of share capital, minimum share capital is AED 300,000 which must be fully paid up and deposited locally and establishing such an entity can be costly.

Professional Licenses - you can apply for such a license if you’re going to be providing a service in Dubai and you have relevant qualifications to back up your claim that you can provide this service professionally.  You’ll need a local service agent who will be paid a minimum of USD 7,500 annually (usually far more) by you for their services as facilitators allowing you to operate within Dubai.

Representative Offices - on the face of it the final alternative seemingly available is to establish a branch of a foreign company with at least 2 years audited accounts in Dubai - but this entity cannot enter into manufacturing or trade business locally and again it has to have a local service agent and possibly apply for certain licensing requirements depending on the nature of the company’s activities.

So if none of these solutions was what you had in mind for your Dubai offshore company what can you do? 

How on earth can you tap into the potential that surely exists in such a tax efficient and generally attractive location such as Dubai?

Well – for one thing you can get in touch with us and we can help you!  We can put you in touch with our preferred partner who can help you with incorporating any of the above listed solutions and who can also incorporate offshore companies within the free trade zones in Dubai and other emirates within the UAE.

If you opt for Dubai offshore company formation within a free trade zone in Dubai you will benefit from 100% foreign ownership, 100% repatriation of capital and profits, 100% corporate and personal income tax exemption, no currency restrictions and excellent support services from local authorities among many, many other benefits.

And because we work with one of the most professional and experienced international taxation planning service providers which has detailed and extensive knowledge of all forms of offshore company structure around the world you can have a complexity free, cost efficient and tax effective offshore company formed in Dubai within days!

With specific reference to Dubai, our preferred partners can give you the benefit of their professional advice and they can create for you a carefully structured entity which is extremely useful for your overall tax planning purposes – find out more, complete our short offshore advice service form and we will be in touch.

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