• One hundred percent foreign ownership: The RAK International Company Regulations do not mandate any requirement for local shareholding.
• Local bank account: An offshore corporation can have multiple bank accounts in the United Arab Emirates for conducting typical international transactions.
• Shares in local companies: Offshore companies can hold shares in both Free Zone and Onshore (LLC) companies, even though they are not permitted to conduct business with individuals in the UAE.
• Rapid incorporation: The process of creating an offshore business in RAK typically takes no more than one week after receiving all the required documents.
• Confidentiality: It is not required that the names of shareholders and directors be included on a public register.

When establishing an offshore company in Dubai, it is imperative to adhere to a set of systematic procedures to guarantee the efficacy of the registration process and assure compliance with local regulations. This article provides a comprehensive step-by-step tutorial on how to form an offshore corporation in Dubai.

The process of establishing an offshore company in Dubai is as follows:

Choose an Offshore Jurisdiction
Ras Al Khaimah (RAK) and Jebel Ali Free Zone (JAFZA) are among the most popular jurisdictions. It is imperative to select a jurisdiction that aligns with your business requirements, as each jurisdiction has its own regulatory frameworks and distinctive features.

Select a Business Name
Adhere to local naming conventions, ensuring the company name is distinctive. It must end with “Limited” or “Incorporated” to indicate limited liability and should not contain restricted terms (e.g., “bank,” “insurance”).

Generate the Necessary Documentation
Gather the essential documents, which typically include:

• • Passport copies of all shareholders and directors
  • Utility bills as proof of residential address
  • A comprehensive business plan outlining the business’s objectives and activities
  • A bank reference letter from your personal bank
  • For UAE residents, a No Objection Certificate (NOC) is required
  • Memorandum of Association (MOA) and Articles of Association (AOA)

Complete and Submit the Application
Fill out the application form and submit it to the relevant offshore company registry along with the necessary documents. Ensure that all documents are accurate and complete to avoid delays.

Pay the Required Fees
Pay the registration and licensing fees mandated by your chosen jurisdiction. The costs may range from AED 10,000 to AED 40,000, depending on various factors.

Draft the MOA and AOA
Upon approval of the application, draft the Memorandum of Association and Articles of Association, which outline the company’s structure and governance.

Obtain the Certificate of Incorporation
After reviewing and approving your documents, the Certificate of Incorporation will be issued, officially recognizing your offshore company.

Establish an Offshore Bank Account
Choose a bank that specializes in offshore companies and submit the required documentation to open a corporate bank account. This process may involve rigorous Know Your Customer (KYC) verifications.

Ongoing Requirements and Compliance
Maintain accurate records and ensure ongoing compliance with the legal and regulatory requirements of your chosen jurisdiction, including annual renewals.

• 100% Foreign Ownership: The JAFZA Offshore Companies Regulations exclude any local shareholding required.
• Only the JAFZA Offshore Company is allowed to directly own local Dubai real estate out of all the offshore companies. JAFZA offshore corporations can own most Dubai properties, however both Free Zone and developer permission are needed.
• Offshore Companies are normally not authorized to engage in business with UAE residents, however they are permitted to hold shares in both Free Zone and Onshore (LLC) Companies. Documents meant for usage in the UAE, Bahrain, Saudi Arabia, Qatar, do not require attestation.
• To handle regular international business, an offshore company can open multi-currency bank accounts in the UAE.
• Shareholder/director details: There is no public record where one must provide the identities of directors and shareholders.
• The registrar is entitled to name inspectors to look into Offshore Company affairs. The owner of the company can have liability for all inspection costs.

When starting the process of establishing an offshore business in Dubai, it is essential to properly prepare all the required documents. The process is designed to be transparent and streamlined, ensuring adherence to local rules and regulations. Below is a comprehensive overview:

• Passport Copies: Provide clear and up-to-date passport copies of all shareholders and directors associated with the offshore company.
• Proof of Residential Address: Utility bills or bank statements can serve as proof of the residential addresses of the shareholders and directors.
• Comprehensive Business Plan: This plan should include a detailed description of the business, its goals, target markets, and an overview of the operating strategy. It helps authorities understand the scope and purpose of your company.
• Bank Reference Letter: A reference letter from your existing bank, where you maintain a personal account, is necessary. This serves as evidence of your financial reliability.
• No Objection Certificate (NOC): UAE residents must obtain a NOC from their current employer or sponsor.
• Power of Attorney: A notarized and documented power of attorney is required if you are appointing a representative to manage your affairs in Dubai.
• Memorandum and Articles of Association (MOA/AOA): This legally binding document outlines the organizational structure and governance of the corporation.