dubai

Key benefits

Dubai is the seventh emirate of the United Arab Emirates (UAE). The population currently stands at 1.5 million however 82% of the population are expatriates. Arabic is the office language however English is the business language. Dubai is the undisputed business hub of the Middle East.

The Jebel Ali Free Trade Zone is a Dubai based, state owned Economic Zone and is one of the biggest, most service driven, customer centric Free Zones in the world. Regulations were passed in 2003 establishing the basis for Jebel Ali Free Zone Offshore Companies which operate under the Jebel Ali Free Zone Authority (JAFZA). Such companies enjoy all the advantages of other international offshore companies but have the added benefit of Dubai’s reputation for business transparency. It is worth noting however that the a Dubai Offshore Company is not allowed to carry out business within the UAE or the Free Trade Zones.

Key benefits of UAE:

  • A Dubai Offshore Company is not a tax haven company; it is not on any black list. The UAE is considered a Schedule 3 FATP jurisdiction and complies with relevant anti-money laundering regulations.
  • No Corporate or Personal Taxes payable. Only banks and companies active in the oil sector are subject to corporate taxes.
  • Offers a high degree of anonymity. Directors and Shareholders information is not kept on public record.
  • Dubai is not a signatory to any international exchange of information agreements. This status is not expected to change as Dubai has no taxation gain from the participation of such treaties.
  • The UAE has entered into some mutual assistance / double tax treaties with relevant jurisdictions such as Malayisa, Hong Kong and the UK. More will follow.

Bank Account Opening:

Bank Accounts can be opened in a number of international banks located in Dubai however a personal visit is required and the process can take a number of weeks to complete.

Tax and accounting regulations

Summary of Requirements for a Dubai Offshore Company

General Information
Type of CompanyIBC – Offshore Company
Timescale to incorporate8 – 10 working days
Corporate TaxationNil
Directors
Minimum No. Required2, Corporate Directors are not permitted
Local Director RequiredNo
Publicly accessible informationNo public disclosure of information
Location of MeetingsAnywhere
Shareholders
Minimum No. Required1, 100% foreign shareholders allowed
Publicly accessible informationNo public disclosure of information
Location of MeetingsAnywhere
Company Secretary
RequiredYes
Local Secretary RequiredN/A
Registered Office / Agent RequiredYes
Share Capital
Standard CurrencyAED (exchange rate approx. 1 USD = 3.67 AED)
Standard AuthorisedAED 10,000 (10 shares of 1,000 AED recommended)
Minimum Paid Up CapitalNo minimum capital stipulated although a capital of 1,000 AED is recommended
Accounting & Compliance
Requirements to prepare AccountsYes , filed at the Registered Office but not filed at any Government Office
Requirement to file AccountsNo
Requirement for AuditAn Auditor must be appointed who will examine and report on the Accounts however the Audit is not required to be filed with any Government Authority.
Local Auditor RequiredN/A
Requirement to file Annual Return No
Additional Information
Bank Account OpeningBank Accounts can be opened in a number of international banks. A personal visit is required however banks can take a long time to open the account depending on the amount of due diligence required. Service Pro will provide additional information based on business activity and client requirements.

 

Procedure of company registration

The following information is required in order to proceed:

  • A completed application form and Client Questionnaire
  • A certified copy of each director and shareholders passport
  • Utility bill for each director and shareholder that are under 3 months old

Once the above is received the following process will commence:

  • Name approval is submitted to the authorities.
  • Once approval has been granted then the corporate documents can be drafted as per the client’s requirements.
  • Shareholders of the company are required to sign the incorporation documents in from of an authorized official of JAFZA. If Shareholders are unable to visit JAFZA and sign the registration documents a Power of Attorney can be drawn up and issued to a nominated person to sign.
  • Within approximately 8-10 working days the company will be registered.