Q) What is the difference between free zone, mainland and offshore company licenses?
A) Free zones are designated areas within the UAE where special rules and regulations of respective Free Zone Authority applies with regard to trade and commerce. Free zone companies are essentially onshore companies that can be 100% owned by expatriates with no import export duty charged.
Trading companies in Mainland that are registered as an L.L.C. (Limited Liability Company) with a U.A.E. local sponsor owning 51% of the business. Offshore IBCs are non-resident companies that are not eligible for office premises or residence visa quota and it cannot do any business within UAE but are permitted to have an office Business Bank Account.
Q) Can an Offshore company hold shares in another company?
A) Yes, an Offshore company may hold shares in other companies as well.
Q) Which sectors are Offshore companies not sanctioned to deal with?
A) Offshore companies are not authorized to carry out businesses in banking, insurance and real estate sector
Q) Can an Offshore company do business in the mainland?
A) No, an Offshore company is unauthorized to carry out business in the Mainland.
Q) What are the document required to set up an Offshore company?
A) The documents required for an Offshore company formation in Dubai are as per the below:
- Application in the requisite format
- Proof of Address
- Documents from Bank indicating the details and bank reference letter
- Copies of passports of owner and shareholders
- Copy of passport of the designate manager
- Notarized Memorandum of Association (MOA)
- Business plan
- Curriculum Vitae indicating the owner’s professional data
Q) What is the minimal capital requirement to set up an Offshore company?
A) For business set up, the minimum capital prerequisite is not mandatory.
Q) For business set up, the minimum capital prerequisite is not mandatory.
A) An Offshore License doesn’t accommodate a residence visa, doesn’t allow any trade operations in the U.A.E. and doesn’t require a local premise.
Q) Can an Offshore investor open a business account in a local bank?
A) Yes, an Offshore company can open a Bank Account in the UAE provided that the company owner visits the country to fulfil the necessary paperwork. The company account will be initiated once the bank has assessed the business activity, company profile, fund flow, etc.
Q) How long does it take to set up an Offshore company?
A) Setting up an Offshore company is relatively easier than the others and can be accomplished within the span of 2 working days. It can be initiated through an online registration form along with submitting the relevant documents. This type of formation can be completed without the physical presence of the company owner in the country.