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Offshore company in Dubai

General information

0%

Tax rate

10 days

Time of establishment of the company

None

Minimum capital

Located in the United Arab Emirates, Dubai thrives economically. The capital of the Emirate is the city of the same name – Dubai. Located in the center of attention due to economic development and tourist projects, the country is distinguished by its remarkable wealth, creating, among other things, palm-shaped artificial islands of Palm Island and airports located on artificial islands at sea. Thanks to its status as a tax haven, Dubai attracts entrepreneurs with its transparent legal system, income tax free zone and free trade zone.

Basic information

  • The company in Dubai is dedicated to people who are considering becoming resident there
  • A personal visit to Dubai is required to open the company,
  • VAT has been introduced since 2018, so accounting is compulsory,
  • Annual accounts should be submitted through the local auditor
  • Opening of the company takes on average 1-2 weeks, changes in the shareholding structure are time-consuming.
  • Recommended for clients who want to invest in Dubai, for example.

Types of companies

In the United Arab Emirates there are three types of companies which differ in terms of registration requirements, prices of such services and, of course, business opportunities.

  • The first of these types is an offshore company. According to the regulations of international law concerning such companies, it is not necessary to have a visa to stay in a given country in order to establish an offshore company there. It is all because this company is not considered to be a resident, but a virtual company. It should be remembered, however, that no activity can then be carried out within this country. The client will own 100% of the shares in the company. He can only open a bank account with a bank that provides internet banking services. Importantly, in order to open an offshore company in the UAE, the client does not have to come to the place – we will act on their behalf. However, it is required that the client comes to the bank in order to open an account. Offshore companies are also established in two other emirates, such as Dubai and Ajman. However, both jurisdictions require the client to participate in the company registration process and sign the relevant documents. In addition, each year the client must provide a report prepared by an expert resident in order to be able to renew the operating license. Unfortunately, this is an additional cost for the client.
  • The second type of companies in the UAE are Free Zone companies, which, like offshore companies, are 100% owned by the Client. This company gives the Client a visa to stay and work in the UAE for a period of 3 years. During this time, however, he may not stay abroad for more than 6 months. The client can also open a bank account for the company together with a cheque book, debit card and access to online banking. Importantly, the client will have to come to the UAE both to set up the company and to open a bank account. As soon as the company is established, you can already apply for visas. The cost of one visa for a resident is about 7500 AED (which is equal to about 700 USD), and this price includes the application form, immigration card, health card, UAE identity card, fingerprints, visa stamp in the passport, etc.
  • The third type of company is Mainland or the equivalent of the Polish limited liability company, which are established in cooperation with local Emirates. It is a local partner and it will hold 51% of the company’s shares, while the Client will hold the remaining 49% of the company’s shares. In practice it is only on paper. The Client can come to an agreement with the local partner and pay the agreed amount in order to be able to do business with part of the shares of the local partner. Thanks to this form of company, the Client can operate anywhere, not only in the UAE, but all over the world. When opening a bank account, the Client can also access checkbooks, debit cards or online banking. However, it is necessary for the customer to come to the bank for approx. 7 days to Dubai to set up a company. The cost is about 75000 AED (which is equal to about 21000 USD), and this price includes subscription fees, sponsor fees, administrative fees, fees of a professional agent, all documents in Arabic, etc. The Client organizes the office space on his own according to his wishes. However, we can help in this – thanks to cooperation with numerous real estate agents. The cost of a visa for a resident up to 7500 AED (which equals about 700 USD).

What to keep in mind

Establishing a foreign company in Dubai means benefiting from a 0% income tax rate and full confidentiality while enjoying the momentum and splendor of the Arab Emirates.

Company registration procedure

Registration of the company on the example of a freezone company and obtaining a residence:

  • checking the availability of the selected name.
  • arrival in the Emirates,
  • choosing a physical office,
  • proof of having a course of study in accordance with the company’s licence,
  • preparation of the articles of association and the company’s statute, acquisition of a licence has a given type of activity,
  • submission of the required documents to the register,
  • applying for the so-called placement card in order to obtain a residence in the UAE,
  • undergo medical examinations for the presence of infectious diseases,
  • receiving the resident’s card after obtaining a decision.

Shareholders:

No restrictions on the maximum number of shareholders, at least one shareholder is required to establish the company. Foreign shareholders are allowed, but in practice the shareholder must be the client. In the case of a local company (LLC) at least 51% shares has to belong to the citizen of the Emirate.

Management Board:

At least one director is required to manage the company. Directors do not have to be Dubai residents.

Registered office:

Freezone in Dubai must have a physical office in the Emirate. Dubai does not allow companies to open at a virtual address. The cost of renting an office is often one of the biggest cost components of the project.

Time to set up a company:

The time to set up a company is about 10 days.

Capital:

No minimum capital requirements. In practice, in order to improve the process of opening an account, it is worth to contribute capital of at least 250 000 AED.

Taxes and finances

There are no income taxes in Dubai. Only oil companies pay taxes. From 2018 onwards. The Emirates have introduced VAT at a rate of 5%. VAT mechanics is similar to that applied in the EU, so there will be no VAT if the supply of services or goods is made to companies or natural persons outside the Persian Gulf countries.

Bookkeeping

Bookkeeping is mandatory.

Other information

Bank account

Your company will have a multi-currency bank account with Internet access to your account, VISA or ATM MasterCard card (you can obtain several cards).