Thinking about setting up an offshore company in Dubai? Offshore companies are formed outside the country of residence and are often used for international business. Dubai has specific rules and approved zones for such setups.
This article shares simple tips to follow when considering offshore company formation in Dubai, based on the current process and available options.
Choose the right offshore jurisdiction:
Dubai has specific locations approved for offshore company formation, such as Jebel Ali Free Zone (JAFZA). Each jurisdiction has its own rules, fees, and procedures. Before starting the process, it is useful to compare the available choices and check which one matches the business goals.
Decide on the business activity:
Offshore companies in Dubai are generally used for holding assets, trading outside the UAE, or managing international operations. Some activities, such as direct trading within the UAE, are not permitted. It is necessary to select an activity that fits within the approved offshore list.
Prepare the compulsory documents:
The basic documents usually include:
- Passport copies of shareholders and directors
- Proof of address
- Business plan or description of activities
- Bank reference letter
Appoint a registered agent:
In Dubai, offshore company formation is done through registered agents approved by the offshore authority. These agents handle the application, submit documents, and communicate with the authorities. It is essential to work with an agent listed in the official registry to ensure all steps are followed correctly.
Pick a clear and acceptable company name:
The company name should follow the naming rules of the chosen offshore jurisdiction. Names that include restricted words or suggest certain industries (like banking or insurance) may be rejected. The name should also not match existing companies.
Consider future planning:
While offshore companies are often used for international trade or holding investments, it helps to look at how the structure supports long-term plans. This may include banking arrangements, asset protection, or ownership transfers. Keeping these points in mind at the start makes the setup more efficient.
Forming an offshore company in Dubai involves several steps, including choosing the right location, selecting a business activity, and working with a registered agent. These tips are based on the standard setup followed in Dubai’s offshore zones and help outline what to consider before and during the process.
