Offshore Dubai

Open Offshore in Dubai

Dubai is one of the seven emirates of the United Arab Emirates. Today, the standard of living in the Emirates is one of the highest in the world. The state is in the second category (there are 8 in total, from 0 to 7) of the OECD in terms of territorial risk and does not belong to the objects of attention in money laundering issues. In Ukraine, jurisdiction is also not considered offshore. In addition, between Ukraine and UAE an agreement on the avoidance of double taxation has been concluded. Monetary unit – dirham, there is no currency control in the country.

For a turnkey setup with a licence, investor visa and bank account, see our service: UAE company formation.

A distinctive feature of the state is that here individuals are completely exempt from income tax. For offshore companies in the Emirates, including companies in Dubai, the absence of taxes is also provided. Offshore companies in Dubai are also allowed to open bank accounts both in the country and abroad. Many businessmen in the world dream of opening a business in Dubai. Since foreign investment brings serious income to the country, the government offers various types of business to non-residents.

If you are thinking about the possibility of opening or buying an offshore Dubai, but do not know where to start – contact Crystal Tax specialists. We will advise you on various forms of companies and help you make the right choice.

Organizational and legal forms of companies

1. Offshore company – international business company, International Business Company (IBC, ICC). This is a company that is registered in the free economic zone Jebel Ali Free Zone. There is no minimum authorized capital. Registration requires obtaining a legal address in the country. Resident visa is not provided.
2. Onshore company – Free Zone Establishment/Free Zone Company (FZE/FZC). Also registered in the free economic zone. Such a company can be completely foreign, operate abroad, inside the free zone, but it is prohibited to operate in the UAE outside the Free Zone. A residence visa can be obtained by both the owner and employees. Such companies need to obtain a special license and annually renew it. The amount of payment depends on the activity of the economic entity. Structuring a company properly can be a great way to protect against automatic exchange of tax information.
3. Local Business – Local LLC. The least attractive option for international business. Such an organization can operate in the domestic market of the UAE, but it is necessary that 51% of the shares belong to a resident.

Taxes and reporting

Only enterprises operating in the domestic market in the banking, oil and gas industries, as well as hotel and catering facilities are subject to income tax in the country. Other companies are exempt from this tax.

There is a trade duty on the import of goods, its amount – 5% of the value stated in the invoice.