Dubai Offshore Companies

Dubai offshore companies generally include companies that are registered at the Dubai International Financial Centre (DIFC). Under the Dubai Law No. 9, 2004, Dubai offshore companies are exempted from paying corporate and income tax and as a result offer major international tax benefits.

Dubai offshore companies obtain these tax benefits for a period of 50 years and can be renewed as desired after the 50 year tax break is up for another number of years. Tax exemption is still granted to offshore companies in Dubai even after they would have renewed their status following the 50 year period.

The International Financial Center at which Dubai offshore companies are registered services reinsurance, captive, banking and brokerage, capital markets and wealth management businesses. Dubai companies that conduct business in these areas are required to be licensed before operations can begin. Dubai offshore companies are not subject to foreign exchange controls and can be owned by any person or corporation domiciled in any country provided that they meet the relevant criteria.

The Dubai offshore company is regulated by the Companies Law 2009. Dubai companies can either be Companies Limited by Shares, Limited Liability Companies or Recognised Companies. These companies have legal personality and because they are all limited liability are independent and distinct from their owners.

A Dubai offshore company is required to prepare its Articles of Incorporation which can be worded and structured according to the model or template provided by the DIFC. The Registrar issues a Certificate of Incorporation upon being satisfied that a company has met the requisites for operating as a Dubai offshore company.

To incorporate Dubai offshore companies there must be at least two directors. A Dubai offshore company also requires a secretary but a director is not allowed to fill that position. In the event that a Dubai offshore company has more than two members, the same person cannot be director and secretary at the same time. Every offshore company Dubai is required to have a registered office at the DIFC, and it is only upon the consent of the DIFC that a Dubai company is permitted to have its registered office outside the DIFC. Dubai offshore company incorporation is done through company incorporation agents as well as through the DIFC. However an agent or representative in Dubai must be appointed for service of process purposes.

Upon enterprise construction, similar to Panama companies formation, a Dubai offshore company is required to maintain a register of shareholders and every shareholder is required to be given a share certificate. A Dubai offshore company is allowed to issue bearer shares and financial accounts must be prepared and maintained so that they can be submitted to the DIFC if requested.

Other forms of Dubai companies that can be formed include Special Purpose Companies, Limited Liability Partnerships (LLP’s) and the Single Family Office (SFO) which all have varying formation, membership and capital requirements and are formed for various purposes. The Single Family Office for example can have the underlying form on a Dubai company (corporation) or a limited partnership and is required to be located at the DFIC.

Dubai offshore company formation services are reliable and professional. Because of the level of growth that Dubai has exhibited as a rapidly emerging market and international financial center, Dubai offshore company formation is always a wise option.

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