Incorporating an Offshore Company in Dubai

The popularity of Dubai as a haven for the incorporation of offshore IBCs is growing, as are the number of parties available to assist the individual or corporation planning on incorporating an offshore company in Dubai!

The popularity of the jurisdiction arises from the fact it is a ‘no tax’ emirate and because Dubai has not signed up to any exchange of information agreements; as a result high levels of security, privacy and asset protection are achievable for an offshore company structure correctly incorporated in Dubai.

Apart from banks and oil companies operating out of Dubai all other companies are free from any requirement to pay corporate income taxes and are able to import many goods tax free with average import duties on all other goods standardised at just 4%.  This makes the incorporation of a company in Dubai an inimitable tax friendly solution.

Furthermore there are no exchange of information programs in operation between Dubai and any other nation because no taxation gain can be derived from such action, therefore anyone keen to maintain high levels of personal and professional privacy can achieve this by incorporating and potentially opening a bank account in Dubai as well.

In terms of the uses of a Dubai offshore company they are manifold and may include the ability to own particular assets privately via the company structure, including property in Dubai; to legally avoid having to pay certain types of taxation on profits and income or to act as a holding or intermediary company for a multinational business. 

In addition to the features, benefits and advantages of incorporating an offshore company in Dubai already mentioned, an interested party may like to note that there is no public record of a company’s directors or shareholders in Dubai and also no taxation department therefore the personal and business activities of the company’s key personnel remain private in Dubai.

Those who wish to incorporate and then establish an offshore bank account in Dubai may do so and they will benefit from the highly sophisticated banking systems in the emirate as well as Dubai’s superior legislation which protects the privacy of investors and account holders.

And finally, in terms of going about establishing an offshore company in Dubai there are, as mentioned, a number of intermediaries in the emirate who can carry out all the necessary steps towards incorporation which prevents a company owner having to actually travel to the emirate to set up the company.  These businesses usually require a fee which with incorporation fees can top USD 5000; and then an offshore company becomes liable for the Dubai government‘s annual renewal costs currently in the region of USD 2500.  Various documents will have to be submitted for incorporation to take place and these will include power of attorney for any intermediary to act of the company owner’s behalf, registration forms, bank references, CVs for the directors and passport photographs.