Hi Rafael,

I'm Himanshi Dawra from DhanGuard.

A UAE offshore company may be considered for holding international investments, business interests and other eligible assets. For families exploring offshore company registration, the key is to choose a structure that supports long-term ownership while taking inheritance laws, shareholder rights and tax obligations in every relevant country into account.

Here are answers to your questions.

1. Can a UAE offshore company hold assets for multiple family members?

Yes. Depending on the jurisdiction's rules and the company's constitutional documents, a UAE offshore company can have multiple shareholders and hold eligible assets or ownership interests on their behalf.

For example, family members may hold shares in the offshore company, while the company itself owns shares in overseas businesses or other permitted investments. The ownership percentages, voting rights and decision-making arrangements should be clearly documented.

However, the company must comply with the relevant offshore authority's requirements, including beneficial ownership disclosure and applicable due diligence.

2. What happens if a shareholder passes away?

The deceased shareholder's shares do not automatically transfer to another family member simply because they belong to the same family.

Their treatment will depend on the company's jurisdiction, articles of association, applicable succession or inheritance law, and any valid will or other estate-planning arrangements.

Families should review these matters before incorporation and obtain appropriate legal advice to reduce the risk of ownership disputes or delays in transferring shares.

3. Can offshore company shares be inherited or transferred to family members?

Generally, shares may be transferred or inherited, subject to the applicable jurisdiction's laws and the company's constitutional documents.

The process may involve:

• Reviewing the company's articles and share-transfer provisions.

• Obtaining required shareholder or director approvals.

• Providing inheritance documents, probate or other legal evidence where applicable.

• Completing the offshore authority's prescribed transfer formalities.

• Updating the company's shareholder register and beneficial ownership records.

The exact procedure and documents will depend on the offshore jurisdiction and the circumstances of the transfer.

4. Can ownership be transferred to a family trust or another holding entity?

This may be possible, but it should not be assumed that every offshore company permits every type of transfer.

The proposed trust or holding entity must meet the relevant jurisdiction's eligibility and compliance requirements. The company may also need to review its articles, obtain approvals and update its shareholder and beneficial ownership records.

Before proceeding, the family should confirm whether the proposed structure is legally permitted and whether it creates additional reporting, tax or regulatory obligations.

5. What legal and tax considerations should an international family review?

A family with assets and business interests in several countries should assess the complete ownership structure rather than looking only at the UAE incorporation process.

Important considerations include:

• Inheritance and succession laws: Determine which country's succession rules may apply to the shareholder's estate and whether a valid will or other arrangement is required.

• Tax residency: Review the tax residence of each family member and the offshore company, including any applicable controlled foreign company rules.

• Reporting obligations: Consider beneficial ownership disclosures, foreign asset reporting and other disclosure requirements in the countries concerned.

• Double taxation: Examine whether relevant tax treaties or domestic relief provisions may apply.

• Asset protection: Understand the limits of the structure. An offshore company does not automatically protect assets from legitimate creditor claims, court orders or applicable legal obligations.

• Banking and compliance: Prepare for source-of-funds checks, ownership verification and ongoing due diligence by financial institutions.

Families should obtain advice from qualified legal and tax professionals in the UAE and the countries where family members, assets and businesses are located.

How Can DhanGuard Assist?

DhanGuard can help you understand the available UAE offshore company formation options, compare suitable business setup structures and identify the incorporation requirements.

You can also review our business setup packages and learn about business bank account requirements in the UAE as part of your wider planning.

For your family's situation, we would recommend first mapping the existing asset ownership, the countries involved and the intended succession arrangements. This will help determine whether a UAE offshore company is suitable or whether another structure should be considered.

Best regards,
Himanshi Dawra
DhanGuard