OFFSHORE COMPANY FORMATIONS

llcOffshore company is an investment vehicle with a tax efficient and cost effective corporate structure for businesspersons to conduct international trade. This product is available only through a network of registered offshore agents who takes care of all administrative and legal matters.

Currently, there are 3 offshore jurisdictions in UAE:

  • Jebel Ali Free Zone
  • RAK Offshore (RAKIA)
  • RAK International companies (RAK FTZ)

Key Features of Offshore companies:

  • 100% Foreign ownership
  • 100% Tax exemption
  • Complete financial privacy and confidentiality
  • Anonymity
  • No minimum capital requirement
  • Quick and easy setup and operations
  • No limitations on maximum capital and denomination
  • Ability to maintain local / offshore bank account
  • Option to open company with minimum one shareholder and director
  • Worldwide recognition
  • No bearer shares
  • Can be opened through authorized Registered Agents

Purpose of Offshore companies:

  • Commonly used investment vehicle
  • Holding company
  • Employment contracts
  • Real estate asset protection
  • Tax exemptions (depending on the jurisdiction and structure)
  • Lawsuit protection
  • Flexible business laws
  • Own intellectual property such as patents, trademarks and copyrights
  • Yacht registrations
  • International trading vehicle
  • Facilitates joint ventures

Limitations:

  • UAE off shore companies cannot rent office and warehouse in UAE.
  • UAE offshore companies cannot carry any business in UAE. Business in UAE is possible only through a subsidiary company.
  • UAE offshore companies cannot carry on the business activities like banking, insurance, financial services etc.
  • Banks usually follow strict due diligence while opening the bank account.
  • Appraisal and financing from banks or private financials companies become very difficult.
  • Trade benefits designed for the local resident companies may not be available to the offshore companies.
  • UAE offshore companies cannot employ staff in UAE.