Yes, you can, and you do not have to be physically present in the Emirates to fulfil all the formalities of setting up a business in the U.A.E. Every year, more and more entrepreneurs are setting up their offshore companies in the UAE, as the country is poised to become the hub of business activities in the Middle East.
With the coronavirus plaguing people across all continents, it is fair to say that people working 9–5 jobs are the worst hit. In these testing times, ironically, the way forward could be setting up your own business, and allow me to elucidate why.
Offshore Company In UAE – The Benefits
The UAE is the epicenter of commercial activities in the Middle East. From restaurants and cafes to media houses and e-commerce businesses, the UAE is faring well in the face of the outbreak, thanks to stern lockdown measures taken by the country. Moreover, the business-friendly tax structure is what allures investors the most to set up a company office in the UAE.
Since the onset of the disease, one thing is clear: online businesses are suffering the least since most of them follow a brick-and-mortar business model, which minimizes operating costs. Take the example of grocery stores that supply everyday essentials to patrons regularly or a warehouse that supplies edible items to malls and restaurants.
Depending upon your business nature, you can reap a lot of benefits from opening an offshore company in Emirates. However, here are some key things to remember before company formation in UAE
Things To Know Before Setting Up An Offshore Company In UAE
- An offshore company formation provides certain jurisdictional advantages spread over all seven Emirates of the country. However, an offshore company does not warrant you a business license. It only provides you with a certificate of incorporation.
- It is mandatory for offshore companies to have a memorandum of association and article of association. This permits the company to function as a holding company, managing assets of a parent company. In simpler terms, an offshore company in UAE prohibits you from taking part in conventional business activities, such as buying and selling of goods and services. However, you can make monetary transactions via an offshore company in UAE.
- Bank accounts and statements should have your offshore company registered in the UAE. Please beware; you cannot set up an offshore company in UAE without the aid of a company specializing in such.
- Such companies in UAE should practice transparent business practices. They should also keep track of their clients in an exercise called Know Your Customer (KYC). The KYC holds your company in UAE accountable for any type of money laundering, theft, funds embezzling, etc. As such, the KYC requires a passport copy, proof of address, bank statement and the credentials of investors.