Offshore Company formation in Dubai
Offshore company formation is one of the available legal structures to establish a business presence in Dubai. The authority to govern offshore company in Dubai is Jebel Ali Free Zone from May 2003. The JAFZA offshore legal structure enables companies to utilize the secure environment without getting trouble from intrusion and bureaucracy found in other offshore jurisdictions. It is mandatory for offshore companies to add the suffix Limited or Ltd. to display limited liability of the firm. Offshore companies have the choice to have 1 to 50 persons as shareholders in the company, in which liability of each person may limited to their percentage of shares.
Dubai is offering 100 percent foreign ownership to offshore companies. When registering the offshore company, the shareholders need either to be present on JAFZA or to present a power of attorney notarized and legalized by UAE Embassy. Regarding the minimum share capital, companies have privilege to set the minimum amount as comfortable to them. The offshore companies are free from all kinds of taxes and annual financial reports and audits except it should be distributed to the shareholders. Usually the offshore company formation procedures may take 5-7 working days.
Advantages of offshore company formation
Except the one primary disadvantage that, offshore companies are not allowed to trade in the UAE, this business structure having tremendous benefits over others. The offshore companies in Dubai are free from all types of taxes, the Dubai offshore will make a good will to the business in front of its clients and vendors, no need to keep a public register of shareholders and directors, it is so quick to incorporate offshore company, etc. are the main advantages available for an offshore setup.