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.
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. | |
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. | |
No Paid Up Capital Requirement | The authorized company initial capital does not need to be paid-up, unless it exceeds AED150,000. | |
Payment gateways | Dubai FZCO's can open accounts in payment gateway platforms like Stripe and others to process card payments online. | |
Can obtain residency Visa | By opening an Offshore Company, you, your employees, and relatives can obtain a residency visa. | |
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. | |
100% foreign ownership allowed | Foreign individuals and corporate shareholders are allowed to own 100% of the Company | |
0% Income Tax | Income earned by Offshore Companies are tax exempt, and there is no capital gains tax as well. |
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.
Dubai Company Formation Pricing
How much does an offshore company in Dubai cost?
A Dubai Offshore Company will vary depending on what services you need. Formation pricing is influenced by the following:
- License
- Establishment card
- Virtual Office Address fee, in case the company sponsors X or more Residency Visa Applications
License Price
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, as you can obtain up to a 30% discount in License Fee when paying for a license fee available for 5 years.
Factors that influence License Pricing:
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How many visas the company will allocate / sponsor.
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If the license is paid for a 1 year period, or for periods up to 5 years. Discounts percentage will apply depending on how many years you pay or renewal your 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)
Establishment card pricing
An Establishment Card has a 2,000 AED price per year. This has to be paid in addition to the License Fee discussed above.
Office Space
Company with 3 or less shareholders
There is a requirement for companies to have an address in the Free Zone. Our solution is inclusive of a virtual address which works perfectly as your business address, nonetheless, if your company has four (4) or more owners, it has to pay for that same office for a fee per year.
Company with 4 or more shareholders
There is a requirement for companies to have an address in the Free Zone. Our solution is inclusive of a virtual address which works perfectly as your business address, nonetheless, if your company has four (4) or more owners, it has to pay for that same office for an AED6,900 fee per year.
Dubai Company Formation Requirements
Shareholders and officials
A Dubai Offshore Company can be formed by just one individual.
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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. Does not need to be a Dubai Resident.
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Only one secretary. Does not need to be a Dubai Resident.
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At least one Director​. Does not need to be a Dubai Resident.
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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.
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.
Remote Opening
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.
Documents required to open an offshore company in Dubai
Individual Shareholders / Natural Persons
To open a Dubai Offshore Company, we would only need a scanned copy, and for you to fill out a short questionnaire
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.​
Corporate Shareholders
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.
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.
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.
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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Access to middle east market.
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Immigration purposeses
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Business Activities and Access to business oportunities.
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International Tax Planning: eligible to Tax Treaties on Dubai Sourced Income that could also be taxed ina foreign jurisdiction.
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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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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.
Banking
How to Open an Offshore Bank Account in Dubai?
A bank account for your Dubai Offshore Company is a must in most structures. Banking solutions and strategy will depend on your specific situation and needs.
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Dubai Company with a bank account in Dubai.
One particularity when it comes to having a company in Dubai with a bank account in the U.A.E. is that the owner or a manager of the company must have an Emirates I.D. (Residency Visa).
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Dubai Company with an offshore bank account in a foreign jurisdiction.
If the company in Dubai cannot open a bank account in Dubai because none of the owners or manager has a Residency Visa, the Dubai company can open a bank account in a foreign jurisdiction like the British Virgin Islands, Singapore, etc.
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This can also be in traditional and digital banks
Our banking services
We provide our clients with banking counseling, solutions, and bank account opening services for companies formed in Dubai.
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.
