Securing Assets in the UAE Through Offshore Company Formation

Securing Assets in the UAE Through Offshore Company Formation

The United Arab Emirates without a doubt has become an attractive destination for investors who are seeking to secure their assets through offshore company formation. If you’re one of them too, or whether you’re simply seeking to protect your assets, this guide will provide an in-depth understanding of the requirements, benefits, and procedures for setting up an offshore company in the UAE.

Why UAE Offshore Companies for Asset Protection

One of the key benefits of setting up an offshore company in the UAE is the mechanism it can provide for safeguarding your assets. By establishing the right corporate structure, you create a strong legal barrier that shields your hard-earned assets from potential lawsuits, a common risk in traditional jurisdictions where assets are more visible.

Especially if you’re a high net-worth individual, the likelihood of encountering legal challenges from your adversaries increases. Having an offshore company offers added protection ensuring that your assets are safe and secured from such potential threats. The UAE stands out as one of the top offshore jurisdictions internationally for asset protection.

Property Purchase in the UAE through Offshore Company Formation

If you’re looking to invest in real estate and broaden your portfolio in the UAE, you can use an offshore company to do so. While certain offshore jurisdictions like JAFZA and AFZ limit real estate ownership to Dubai and Ajman respectively, RAK ICC offers the flexibility to own real estate in both Dubai and Ras Al Khaimah.

Benefits of Using an Offshore Company to Secure Assets in the UAE

Tax Benefits 

The UAE has maintained numerous tax advantages for offshore companies that allow investors to enjoy good returns on their investments. 

Easy Business Setup

The process of offshore company setup in the UAE is quite easy and can be completed within the shortest time frame, especially considering a jurisdiction like RAK ICC can be ideal as there is minimal documentation needed for incorporation and meeting the compliance standards.

100% Foreign Ownership 

Offshore company formation in the UAE allows for total foreign ownership, eliminating the need for a local partner or a shareholder. 

Offshore Foundations

A Foundation is a legal entity that can have a beneficiary or a specific purpose, but it doesn’t have shareholders or members. It is created to safeguard assets, similar to a trust. However, the main difference between a Foundation and a trust is that a Foundation is a legal entity. You can transfer assets like currency, real estate, or company shares to an offshore foundation. Once the assets are transferred, they no longer belong to the founder and offer significant protection from claims by litigators, creditors, and others.

Offshore Foundations Can Be Set up for the Following Purposes

Holding Real Estate Assets

As of now, offshore foundations aren’t able to directly own real estate property. Instead, they can own an offshore company, which can secure real estate assets in the UAE.

Owning Offshore Company Shares

Foundations can hold the shares of offshore companies. In turn, these companies can engage in business activities and secure assets globally.

How to Set Up an Offshore Company in the UAE

Step 1. Reserve a Company Name

The first step in offshore company formation is to decide and reserve a company name. You must note that the company name can have only one of the two allowed suffixes, i.e. Limited (LTD or Incorporated (INC).

Step 2. Preparation of the Documents

The next step is to gather and prepare the necessary documents like-

  • Memorandum of Association (MOA)
  • Articles of Association (AOA)
  • Appointment letter of director(s) and secretary
  • Appointment letter of registered agent
  • Specimen Signature

Step 3. Submission of the Documents

This next step involves the signing of company documents and submitting them to the relevant authorities.

Step 4. Open an Offshore Bank Account

The next and final move is to open a bank account for the offshore company, which helps business owners carry out business transactions with ease. 

By completing these steps you can successfully fulfill the process of forming an offshore company in the UAE, ensuring compliance with regulations and efficient beginning of your business.

Requirements

Documents

  1. Passport copy
  2. Proof of address in English

Additional documents may be required, depending upon the KYC process.

Company Details

  1. Brief business description
  2. Defined business activities
  3. Names of shareholders and directors
  4. UBO (Ultimate Beneficial Owner of the company

Conclusion

Securing assets in the UAE through offshore company formation brings numerous advantages, including tax benefits, increased privacy, asset protection, and operational efficiency. By understanding the requirements, benefits, and procedures for setting up an offshore company in the UAE, investors can now effectively protect their assets in the UAE.

It is advisable to seek assistance from a corporate service provider for an easier walkthrough of the process of setting up an offshore company in the UAE and securing your assets seamlessly. For sound advice, you can contact expert business formation consultants at InZone and ensure hassle-free offshore company formation in the UAE.

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