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Offshore Company Meaning

An offshore company is sometimes referred to as an international business company. It is a form of legal entity that allows a company to benefit from low tax or no-tax environment. Offshore companies provide an excellent system for business and wealth management, smart investment strategies, freedom and ease of business operation. Registered offshore companies in Dubai are allowed to open multi-currency accounts in the UAE and execute business internationally. Offshore companies are not allowed to carry out business with the residents or have physical structures in Dubai.

Offshore Company in Dubai and Other Emirates

The true definition of an offshore company is mostly confused or misunderstood. More times than often, foreign investors confuse offshore companies in Dubai with free zone companies. Offshore companies are business establishments which are registered in Dubai but setup and operated in an offshore location away from Dubai’s jurisdiction. Many factors are put into consideration in the selection of the location for an offshore company. Dubai offshore companies can be limited companies, limited liability Companies (LLC) or limited partnership.

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Offshore Bank Account in Dubai

Most of the offshore Jurisdictions can open a bank account inside and outside UAE, the banks will review the documents upon completing all the requirements, opening a bank account is relatively easy, we recommend opening the bank account inside UAE, there are no account opening fees, but local banks may require an initial deposit to open a company account, all banks in UAE have an online services to manage the bank account and for online money transfer.

Benefits of Offshore Companies:

  • Suitable for assets Protection

  • Flexible regulatory authorities

  • Flexible Business Laws and Protection from Lawsuits

  • Access to complete anonymity and privacy

  • 100% foreign ownership, no UAE nationals required as local sponsor

  • 100% tax-free

  • No public records of shareholders and directors

  • Access to global funding

  • 100% customs duty-free too

  • Gateway for international market expansion

  • Offshore firms can often serve as holding companies

  • Can hold shares in any LLC company in the UAE mainland or any free zone

Disadvantages of Offshore Companies:

  • No residence visas allowed on offshore companies

  • Cannot conduct trading or any other business inside UAE

Set up your Offshore Company Today