UAE fosters a thriving economy that resonates strongly among entrepreneurs around the world. With the development of various business zones, the nation has taken a significant leap in terms of industrial empowerment and corporate growth. When it comes to offshore capabilities, UAE stands tall with its two major destinations, viz. RAK and JAFZA.
Both zones provide a fertile ground for unparalleled offshore development, catering to diverse industries from e-commerce to asset management. RAK, in particular, is rapidly gaining traction among startups and emerging ventures seeking a viable offshore arrangement to fuel their growth.
If you are gearing up for one of these destinations, you must get accustomed to legalities concerning offshore company setup in the UAE. This article takes a deep dive into the legal implications of starting a business in one of these jurisdictions.
Why are RAK and JAFZA Making Waves Among Global Entrepreneurs?
RAK has become one of the most robust destinations for startups and emerging businesses. It shines with its low setup cost, minimal taxes, and seamless incorporation. Closeness to Saqr port makes it an ideal location for trading and ecommerce activities.
From the offshore standpoint, RAK offers an inviting environment fueled by minimal taxes and fewer reporting. RAK is home to over 15,000 registered entities belonging to 100 different nations.
Residing near the largest port in the Middle East, viz. Jebel Ali Port, JAFZA shines with its sprawling footprint, accommodating over 9500 industries spanning different sectors, such as ecommerce, trading, shipping, heavy industries, etc. Seamless warehouse leasing and property ownership add to its appeal, making it a befitting destination for local production and cross-border business.
Here are notable highlights that make these zones stand out for offshore activities:
- Prompt registration due to minimal documents and simplified online procedure
- There is no need to partner with a local sponsor
- No corporate taxes
- 100% profit repatriation
- Low custom duties for international trade
- Enhanced IP protection due to alignment with international treaties
8 Steps Guide to Offshore Company Setup in UAE
If you are after a simplified procedure for offshore company setup in UAE, the given steps can ease your way for you:
Step 1: Partner with BSW- Your Trustworthy Ally for Offshore Endevours
BSW, i.e. Business Setup Worldwide, has decades of experience in global compliance and incorporation. Regardless of destinations and compliance, BSW yields bespoke offshore solutions that can make your business global without unnecessary legal hurdles—partner with BSW to initiate a seamless business journey.
Step 2: Appoint a Certified Agent
BSW will partner you with a certified agent as a part of compliance. These agents foster profound acumen concerning local compliances and paperwork. Besides, they keep everything aligned with local laws irrespective of industry, business type, or structure.
Step 3: Name reservation
Name reservation is a vital step, and it requires a careful drill down of naming conventions and trademark guidelines. The registered agent can help you with name selection and reservation.
Step 4: Structure Selection
RAK and JAFZA offer viable business structures, each offering unique advantages and attracting distinct compliance .Some noteworthy structures for offshore companies include:
IBC
Abbreviated for International Business Company, IBC is a simple yet flexible structure for offshore activities. It is free from regulatory hurdles and rigorous reporting. A single shareholder can bring IBC into motion after adhering to the authority’s guidelines.
LLC:
Limited Liability Company combines the goodness of a partnership firm and the flexibility of a corporate entity. Unlike a conventional partnership, an LLC is more robust and adheres to the concept of perpetuity. As such, there is no limit on how many members can be part of this legal structure.
Trust:
Trust is widely popular among asset, holding, and wealth management companies because of its confidentiality. However, trust cannot come into force until the trust deed is approved by the competent authority and bears the signatures of the interested parties, i.e., the settlor, trustee, and beneficiaries. Trust is extensively used for real estate planning and asset protection.
Step 5: Arrange documents
Documents are of paramount importance when it comes to registering an entity under a given legislation. In the registration parlance, paperwork differs significantly depending on the industry and business types. Therefore, it is advisable to consult your agent for this purpose.
Step 6: File the Application and Submit the Fee
Upon arranging the proper dossiers, the next step involves filing the registration application with the concerned authority. The agent will ensure the filing adheres to the authority’s guidelines. The filing process will be deemed to be completed once the fee is paid. It’s noteworthy that the fee shall vary depending on the industry, structure, and business type.
Step 7: Inspection and Registration Grant
The authority will then inspect the paperwork in accordance with underlying regulations. They will verify their accuracy and check whether or not they align with registration requirements.
Step 8: Opening of bank account
Lastly, the agent will help you open a corporate bank account that aligns with your business requirements. Once the bank sets your account into motion, you can start your business operation.
Documents Concerning Offshore Company Setup in UAE
- Founding papers such as Memorandum of Association and Article of Association. Whereas MoA entails the company’s objectives, scope, and structure, AoA depicts how internal management pans out. Prompt your agent to devise such documents as they are susceptible to legal errors.
- Bank Reference Letter: Issued by the parent company’s bank residing in the home country, the bank reference letter verifies the financial health and credit history of the applicant.
- Letter of incumbency: Such documents help the authority identify who manages the company and who is involved in decision-making. It explicitly reflects the officials’ details alongside their designation.
- Director/partner/shareholder’s ID proof: Notarized copy of the passport
- Address proof: Latest utility bills or bank statement
- Company resolution passed by the board members
Conclusion
That’s our take on the offshore company setup in UAE. Hopefully, this guide will ease your way, enabling you to cater to every requirement effortlessly. If you seek reliable support to up your offshore game, partnering with BSW is highly recommended. Abbreviated as Business Setup Worldwide, BSW has transformed the way businesses deal with cross-border legalities to extend their footprint. Our all-encompassing offshore packages are tailored to your business needs and ensure seamless incorporation in the jurisdiction.