An offshore company is a legal entity with the right to conduct business exclusively outside the country. This means that the owners of the offshore cannot sell their products or have an office (physical presence) within the Emirates but can open an account in a local bank, buy real estate here and own shares of other companies. Using such a business model does not grant the right to receive a residency visa.
Opening an offshore in the UAE will be advantageous for entrepreneurs who already have their business in another country and want to have a legal presence in the Emirates to reduce their tax burden. This option is suitable for those who do not plan to conduct business within the UAE in the future. It is not possible to scale the offshore activities or get loans from local banks.
Registering offshore in the UAE is a relatively simple procedure. There are no requirements for starting capital, and the opening costs AED 10K (USD 2.7K). Maintaining financial reporting is a mandatory condition. Opening a bank account offshore is possible but quite difficult: banks have their own list of requirements, and they are quite high.
Features of an offshore company in the UAE:
- Shortest creation times (from two days)
- No need to rent an office
- No need for audit reporting
- High level of confidentiality
- The business registration process does not require personal presence in the UAE
- Effective asset protection mechanisms.