What Is a Free Zone Offshore Company

Nowadays, however, free trade zones in the UAE have taken on a different nature, as they are not only based on seaports or airports, and do not only offer trade and manufacturing licenses. Currently, there are about 20 different free zones in Dubai itself, offering business activities in almost every sector of the economy. For example, there is a free trade zone for healthcare providers (Dubai Healthcare City or DHCC); there is a free trade area for education and training institutions (Knowledge Village); There is a free trade zone for media companies (Dubai Media City), there is a free trade zone for the provision of financial services (Dubai International Financial Center or DIFC) and many others. Each free zone has its own rules and regulations; However, the basic incentives mentioned above are the same in all free trade areas. Offshore companies can only be incorporated through registered agents, as none of the offshore jurisdictions offer direct contact with shareholders. InZone is a registered agent and helps its clients set up offshore businesses in the UAE with end-to-end assistance in opening corporate bank accounts. If you need help setting up a business in a free trade zone or want to set up an offshore company, contact Commitbiz`s experts at www.commitbiz.com or send a request to [email protected] Although offshore company registration has long been practiced in countries such as Monaco, Liechtenstein, Panama and Hong Kong, the United Arab Emirates only began to register these companies in 2003 with the publication of dubai`s Offshore Companies Regulations 2003. Under the 2003 regulations, the Jebel Ali Free Zone Authority was allowed to register offshore companies in Dubai. Later, in 2007, two other free trade zones in Ras Al-Khaimah such as the Ras Al-Khaimah Free Trade Zone (RAKFTZ) and the Ras Al-Khaimah Investment Authority (RAKIA) were allowed to register offshore companies. As mentioned earlier, UAE offshore companies are not allowed to do business directly in the UAE. However, an offshore company can be a shareholder in any continental and/or water free zone company, which allows it to enter the UAE market and conduct licensed business activities through these subsidiaries.

In addition, an offshore company is not legally considered to operate in the UAE if: An offshore company is allowed to open bank accounts with banks located in the UAE and operate them if necessary. He will also have the opportunity to own investments in and outside the UAE. An offshore company can buy and own properties in certain predefined areas of Dubai. Any income earned by the Company from its investments may be retained in the bank account operated by the Company. Offshore companies and free zone companies have become very popular in the UAE for various reasons. It is important that you understand the main differences between these two (2) types of entities depending on the needs of your business before making the decision to start your business in the UAE. They offer different business models and justifications. We have outlined four (4) key differences between free zone companies and offshore companies in the UAE to help you make your decision: An offshore company in the UAE does not have a minimum capital requirement In addition, an offshore company has its own advantages such as lower installation costs, no obligation to rent offices and eligibility to own real estate. These companies have only one office address and are registered in the UAE without being allowed to conduct business activities directly in the UAE.

Shareholders of offshore companies are not entitled to residency visas. If you are starting a business in the United Arab Emirates (UAE), you need to know the terms “mainland”, “free zone” and “offshore”. There are pros and cons to all three jurisdictions, as well as business opportunities for entrepreneurs with different priorities. Priorities may be subject to the type of business unit, the business activity carried out by the company and your intended business partners. Therefore, to run a business in the UAE, you need to have a complete knowledge of these jurisdictions so that you can make the right decisions. .