A Dubai Offshore Company is a reasonable choice to benefit from the stable economy, tax exemption and excellent banking facilities, as well as the favorable regulatory framework of the United Arab Emirates.
The corporate law of Dubai and the United Arab Emirates , in general, provides for three types of company: the local or mainland company, which is required to set up a local business such as a shop or a café, a company in one of the numerous free trade zones in the United Arab Emirates, as well as the international business company or Dubai Offshore Company for international investors.
A local business partner who holds (in trust) 51% of the shares is usually required for the local company. The advantage of offshore companies and free zone companies is that 100% of the shares can be foreign-owned and no local partner is required. All companies are treated equally in tax law and are exempt from any corporate taxation.
The Emirates of Dubai and Ras al Khaimah north of it are particularly suitable for incorporating an offshore company. These companies are suitable for international entrepreneurs who do not want to build up any substance in the United Arab Emirates. The company is often used as a holding company or for international transactions and enjoys an excellent reputation due to the excellent standing of the United Arab Emirates. Although the Dubai Offshore company is not allowed to carry out any active activities within the Emirates, real estate in Dubai can be bought and kept discreetly or as part of an asset protection structure, shielded from other assets.
The Emirate of Ras Al Khaimah presented the concept of the International Business Company back in 2007. Due to the numerous advantages for entrepreneurs and investors, it is one of the most attractive corporate forms worldwide. At the present moment, around 20.000 offshore companies are registered in Ras Al Khaimah (RAK). Unlike in many other countries, the tax system is designed sensibly and offers the best conditions and highest level of freedom for entrepreneurs internationally. Usually, a company in Germany, for example, is punished for performing well and must, accordingly, contribute a larger portion of their profit to the gross domestic product. The punishment is expressed in the increased tax burden; the more you earn, the higher the tax rate. An offshore company in Dubai is exempt from corporate tax and income tax. These creative spaces are ideal if you want to take your company to the next level without having to give up half of the funds you have generated. An offshore company enables you to pursue international business and create real value.
RAK is the ideal choice for every entrepreneur who wants to develop himself and his company. By allowing 100% foreign ownership, this gives you more freedom – you don’t need a local partner. Another great advantage that focuses on the development of your company is that there is no accounting obligation for your offshore company in Dubai and you can thus save the costs for accounting and annual accounts and invest more time in the expansion of your company. Ras Al Khaimah is by far one of the most attractive locations for starting an offshore company, because not only does the tax exemption offer more development opportunities, but the establishment fees in this emirate are also significantly lower than in other emirates. The advantages and benefits remain the same. The RAK Offshore Company only requires one shareholder for legitimation and can be incorporated without their personal presence.
A company founded in Dubai enjoys a different status internationally than countries with a similar tax concept. Each location has its advantages, Dubai is an essential economic and financial center. In addition to New York, London and Frankfurt, Dubai is the spearhead of economic power. When incorporating an offshore company, the focus is therefore not on saving taxes as a matter of priority, but on choosing the location with the highest international relevance and good image. The development observed in recent years promises that Dubai will continue to grow into a global economic center and thus offers your company the best opportunities for long-term success.
There is no obligation to invest the entire share capital in an offshore company in RAK. Legislators do not request full availability of liquid funds and company capital, neither during nor after the incorporation.
The United Arab Emirates maintain a double taxation agreement with 41 other countries. Any profit made will not be taxed twice. States like Germany have found ways to practically bypass the double taxation agreement while the UAE is actually abiding by it.
RAK is considered an independent economic zone in the UAE and also has a completely autonomous trade regulation, meaning complete exemption from customs duties as well as from all import and export fees. There are no trade barriers.
Neither corporate profits nor personal income are taxed.
The lists of shareholders and directors of the individual companies are not public in Ras Al Khaimah. Therefore, the strictly confidential processing of your data is guaranteed at all times. Only the authorities manage your personal data, meaning they are not accessible by the public.
The Emirate of Ras Al Khaimah has a highly developed infrastructure. The financial structure offers a lot of security because the Dirham is directly linked to the US Dollar. The cost of living in RAK is reasonable and pleasant. The costs for energy, personnel and real estate are relatively low.
Ras Al Khaimah, as one of the seven emirates of the United Arab Emirates, is a highly attractive location in the Persian Gulf. You are offered a great deal of entrepreneurial and financial freedom to help you expand your business without having to hand over half of your financial foundation to the state treasury. From an international perspective, the economic attractiveness makes Ras Al Khaimah the perfect location for every entrepreneur who wants to introduce more effectiveness and efficiency into the cogs of their company. Dubai Offshore supports and accompanies you through the entire process, so that the incorporation of an offshore company in Dubai becomes a pleasantly exciting experience for you. Dubai Offshore is a very future-oriented company with the goal of giving every entrepreneur the opportunity to gain a foothold in the Persian Gulf. With a company in RA, the international market will take great interest in you, due to the excellent reputation of the United Arab Emirates. Tax advantages, a business-friendly environment and the best international reputation on the financial market will all give you every opportunity to expand effectively with your company. Our professional team is at your disposal and would be happy to advise you.
In addition to the quick, unbureaucratic incorporation, all companies in Dubai are tax-free. Only a VAT of 5% is incurred domestically. In addition to the tax advantages, the quick incorporation of the company, the modern legal system, geographical location, positive image of Dubai and availability of offices, operating spaces and employees count among the jurisdiction’s advantages.
Companies in Dubai and all the Emirates are tax-free. A 5% VAT applies to businesses and services within the UAE, which makes the UAE one of the most tax-friendly countries.
Zero %. The UAE does not levy taxes on corporate profits domestically and abroad, which is why Dubai is a zero-tax jurisdiction.
Yes, Dubai boast a very modern corporate law and is very business-friendly. The company can be founded as a mainland company, freezone company or international company.
Dubai is considered an investor's heaven. With complete tax exemption, simple company incorporation and the availability of qualified, affordable staff, Dubai creates the perfect conditions for a successful business.
Dubai and the UAE in general have numerous so-called “free trade zones”. These enable foreigners to easily incorporate a company and own 100% of the company shares. Freezone companies in Dubai are tax-free.
The United Arab Emirates and, above all, Dubai allows foreigners to set up a company in a simple, unbureaucratic manner and to obtain a residence permit. Companies are incorporated by local, approved agents who take over the entire start-up process and, if necessary, apply for a residence permit.
An LLC is a so-called mainland company, i.e. a regular company. The advantage of the LLC is that it can operate throughout the UAE, but the disadvantage for foreigners is that they can hold a maximum of 49% of the shares. Which is why foreign investors often prefer a freezone company, which allows 100% of the shares to be held by foreigners while also being tax-free.