Offshore Company Formation in Dubai
Dubai, in the United Arab Emirates, is becoming every day a more popular jurisdiction to establish an Offshore Company in, and also to move your personal tax residency in.
0% Income Tax
Income earned by Offshore Companies are tax exempt, and there is no capital gains tax as well.
Quick formation and low requirements
The Company can be formed in 3-5 business days, and remotely without the need for you to visit Dubai.
Payment gateways
Wyoming LLCs can open accounts in payment gateway platforms like Stripe and others to process card payments online.
No economic substance requirements
Dubai Offshore Companies, either tax resident or not, are not subject to economic substance requirements, hence you won't need to have an office space or employees as a legal requirement.
100% foreign ownership allowed
Foreign individuals and corporate shareholders are allowed to own 100% of the Company
Can obtain residency Visa
By opening an Offshore Company, you, your employees, and relatives can obtain a residency visa.
No Paid Up Capital Requirement
The authorized company initial capital does not need to be paid-up, unless it exceeds AED150,000.
Great option for online business or store, digital nomad, and service providers
Widely used by e-commerce businesses, digital nomads, and service providers thanks to its tax-free status and access to digital tools.
Taxation in Dubai of Offshore Companies
0% Income tax Rate
Free Zone Companies, also known as Offshore Companies, are tax exempt (0% income tax) on their foreign sourced income, including income received by other Companies formed in the same Free Zone or in other Free Zones.
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If the Company has income from mainland sources, which exceeds AED 375,000, this portion of of income will be subject to a 9% income tax rate.
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In addition, companies formed in Dubai are not subject to Capital Gains Tax, Stamp Duty, or other business taxes.
Registry for Corporate Tax
Even though the Dubai Company will not be subject to income tax, the company must register for Corporate Tax within 3 months after the company is formed. This is a quick and easy process that can be done online.
Corporate Features of Dubai Offshore Company
​​​Corporate Features
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100% Foreign Ownership, and there is no shareholder(s) nationality restrictions: just a very few exceptions.
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Corporate Shareholders are allowed.
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Companies can have up to three different and mixed business activities, or even more activities for an extra fee. Meaning, the company can have a professional services license, and also a commercial license.
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Can Operate Offshore and Onshore.
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No Paid-Up capital requirements.
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No mandatory office space required: even though you can get an office space at IFZA, these are not mandatory and this kind of setup is cost-efficient, unlike in other free zones where an office space is required to set up the offshore company and get the business licenss.
Dubai Offshore Company opened remotely
To open the Dubai Offshore Company, you don’t need to travel to Dubai at all or to have a residency visa. We can open the company remotely for you without having to travel to Dubai.
It can be operated remotely from outside the UAE and does not need to operate from inside the Free Zone.
IFZA Free Zone companies are a perfect option for those who want to operate the company while physically located outside of the UAE, making it a great option for digital or online businesses, start-up, e-commerce businesses, professional services providers, and more.
The company can also be operated from any place you wish in Dubai, even from your Dubai Apartment or Hotel Room.
Nonetheless, if you want to operate it from inside Dubai, IFZA infrastructure has a great office space infrastructure for you to operate it from inside the IFZA Ecosystem within IFZA Business Park and also from within the Dubai Silicon Oasis.
Company Authorized Capital - Paid Up Capital
No need for paid-up capital: The company Share Capital does not need to be paid up, unless it exceeds AED150,000. If the authorized capital exceeds AED150,000, this must be deposited into a UAE Bank Account.
Recommended Authorized Capital: if the company will allocate investor or partner visa for its shareholders, AED50,000 per shareholder as Authorized capital is required. If the company will not allocate a residency visa, the recommended Authorized Capital is a minimum of AED10,000 per shareholder.
Do you need an office space for your Dubai Offshore Company?
No, you do not need an office space in IFZA Dubai, unless and only if you will be allocating 4 or more residency visas. In this case, you will need to pay a flexi-desk option that costs AED6,900 per year, which is about US$1,880 per year
If the company allocates 3 visas or less, it comes with a “free” flexi-desk office space. The Flexidesk is described as:
A shared workstation perfect for a startup entrepreneur
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10 hours of access per week
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High-speed WiFi
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Shared IFZA address
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1 hour of meeting room usage per month
Timeframe to open a Dubai Offshore Company
After we submit the company incorporation form, and payment is cleared, it can take from 2 to 5 business days to have the company open and licensed.
Uses of an Dubai Offshore Company
Offshore companies in Dubai can be used for several purposes, including, but not limited to:
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Holding Company.
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Asset Protection Vehicle.
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Online store and e-commerce in general.
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Trading, business, counseling businesses.
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International Tax Planning.
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Obtaining a Residency Visa in Dubai.
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Real Estate Company
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Note: Free Zone Companies are not eligible to benefit from Dubai Double Tax Avoidance Agreements (Tax Treaties) since they are already tax-exempt.
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Dubai Offshore Company Formation Requirements
Company Members:
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1 shareholder minimum. Does not need to be a Dubai Resident
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Only one general manager.
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Only one secretary
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At least one Director​
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The Shareholder can hold all the positions within the company, hence the sole shareholder can also be the General Manager, the secretary, and the director.
What is IFZA?
We form Dubai Offshore Companies in the International Free Zone Authority (IFZA), a Free Zone located within the Dubai Silicon Oasis. IFZA companies can operate from DSO, increasing the flexibility of doing business in the UAE, allowing entrepreneurs and startups the chance to grow their businesses and collaborate with numerous technology companies, experts, and startups based in Dubai Digital Park (DDP), Dubai Technology Entrepreneur Campus (Dtec), and DSOA headquarters.
Documents required to open an offshore company in Dubai
To open a Dubai Offshore Company, we would only need a scanned copy, and for you to fill out a short questtionaire
Passport Copy
Short Questionnaire
Descriptions:
1- Photo or Scanned Copy of your Passport. This document does not need to be certified by a notary, a simple photo or scan will suffice. This is how friendly Dubai is towards foreigners looking to establish a Dubai Company.
2- Complete a non-intrusive questionnaire, where we will ask for some basic information like where you are from, your email address, phone number, your residential address, business activity information, and information alike.
We do not need proof of address to open a company an offshore company in Dubai.
3- A passport-sized photo (which has to meet our photo guidelines) in case you will request a residency visa. We leave this item as the third and last because this is mostly related to obtaining the residency visa. This requirement is not needed to be open the Dubai Offshore Company, but we will need it once we request your residency visa.
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For corporate shareholder, in addition to the requirements above, we would need the following certified / notarized documents:
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Board resolution
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Memorandum & Article of Association of the corporate shareholder, or its equivalent
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Valid (current) Trade License or its equivalent.
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Certificate of Incorporation or Formation.
How much does an offshore company in Dubai cost?
The price (License) for a Free Zone company in IFZA, Dubai, will depend on the number of visas to be issued under this FZCO and for how many years you are paying the License
1 year License Packages
License price does not include visa price.
Zero Visa License: 13,900 AED (US$3,784)
1 Visa License: 17,900 AED (US$4,874)
2 Visa License: 21,900 AED (US$5,963)
3 Visa License: 23,900 (US$6,507)
4 Visa License: 25,900 (US$7,052)
5 Visa License: 27,900 (US$6,597)
6 Visa License: 29,900 (US$8,141)
Stripe for a Dubai Offshore Company
Eligibility: UAE Free zone establishments (Free Zone Companies) are one of the supported type of businesses from the UAE.
License: a trade license issued in the UAE is required.
Bank Account: a local bank account is required.
How to Open an Offshore Bank Account in Dubai?
Opening a Bank Account in Dubai for a Free Zone company will depend on wether you are a foreign residing in Dubai, or a Non-Resident Foreigner.
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IFZA FZCO with Resident Owner
Opening a Bank Account in Dubai for an Offshore Company is easy and possible if you request and have a residency visa, as banks in Dubai lean towards this option.
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Is the UAE Part of the CRS? Yes, the UAE is part of the CRS.
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IFZA FZCO with Non-Resident Owner
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If you just form a Free Zone company, and don't request a residency visa, opening a bank account in Dubai for this Free Zone company will be a harder process. It would be easier to open this bank account in another jurisdiction in case you don't want to apply for a residency.
Offshore Bank Account in Dubai
IFZA companies can open bank accounts in the following banks, which have Partnered with the International Free Zone Authority to provide.
As IFZA Agents / Partners, we at Offshore Affairs provide bank account opening assistance in the following banks. Hiring our bank account opening assistance is required.
Commercial Bank of Dubai (CBD):
- Residency Visa Required.
- IFZA FZCO are elegible.
- Visit is a must.
Wio Bank:
- No minimum initial deposit
- Online Application.
- No visit required.
- Can be connected to Stripe