The company Offshore in the Emirates

Creating an offshore company in Dubai offers several advantages:

• Remote registration: A simplified process allowing you to set up your company without traveling.
• Fast registration: Setting up your offshore company can be completed in just a few days.
• Reduced costs: This type of structure is one of the most affordable options for starting a business in Dubai.

Despite its many advantages, an offshore company in Dubai has certain weaknesses:

• Lack of economic substance: Unlike Free Zone companies, an offshore company has neither a physical office nor employees.
• Ineligibility for tax treaties: Offshore companies in Dubai cannot benefit from the double taxation agreements signed by the UAE.
• Poor image: Some banks or international partners perceive offshore companies as lacking transparency.

Despite its limitations, an offshore company in Dubai can offer interesting opportunities:

• Conversion to a Free Zone company: You have the option of converting your offshore company into a Free Zone structure to benefit from additional advantages.
• Use as an SPV: It can serve as a “Super Holding” to hold assets, such as real estate or shares in other companies.
• Real estate investment: An offshore company can be used to purchase and hold real estate in Dubai.

Certain legal and practical aspects may pose problems for an offshore company in Dubai:

• Economic Substance Regulations: Increasing substance requirements may limit the tax benefits.
• VAT application: Certain activities may be subject to VAT, even for an offshore company.
• Difficulty opening a bank account: Local banks are becoming increasingly demanding with offshore companies, making access to banking services more difficult.