Hi Callum,

I'm Hemant Katyal from DhanGuard. If your objective is to hold shares in overseas businesses, manage international investments and own eligible assets, an offshore company may be a suitable option. However, you should understand its permitted activities, registration requirements and limitations before proceeding with offshore company formation in Dubai.

1. What Are the Main Requirements for Registering an Offshore Company in Dubai?

The general registration process includes:

1. Selecting a jurisdiction, such as JAFZA Offshore or RAK ICC.
2. Choosing and reserving a company name.
3. Identifying shareholders and directors.
4. Defining the company's intended activities.
5. Submitting identification and address documents.
6. Completing due diligence through the registered agent.
7. Paying the applicable registration fees and receiving incorporation documents.

An offshore company generally requires a registered agent and registered office arrangement rather than a conventional operating office.

2. Can a Foreign Investor Establish an Offshore Company with 100% Ownership?

Yes. Foreign investors can generally establish a UAE offshore company with 100% ownership, subject to the selected jurisdiction's rules.

Individual and eligible corporate shareholders may be permitted. The company must also maintain accurate shareholder and ultimate beneficial ownership (UBO) records and meet applicable compliance requirements.

3. What Activities Can an Offshore Company Legally Undertake?

Depending on the jurisdiction, permitted purposes may include:

• Holding shares in overseas companies.
• Managing eligible international investments.
• Owning certain overseas assets and intellectual property.
• Holding foreign subsidiaries and business interests.

However, an offshore company is generally not authorised to conduct regular commercial operations in the UAE mainland. If you intend to provide services or trade actively in the UAE, consider free zone company formation in the UAE or mainland company formation in the UAE.

4. Can an Offshore Company Hold Foreign Shares, Investments and Eligible Property Assets?

Yes. An offshore company can generally hold shares in overseas businesses, eligible investment portfolios and certain property assets, subject to the laws of the registration jurisdiction and the country where the assets are located.

Before transferring assets, review the relevant ownership restrictions, tax treatment and reporting obligations. Offshore incorporation does not automatically remove tax liabilities in other countries.

5. What Are the Estimated Formation Costs, Annual Renewal Fees and Compliance Requirements?

The costs depend on the jurisdiction, registered agent and company structure. Common expenses include:

Ongoing responsibilities may include annual renewal, maintaining shareholder and UBO records, updating company details and meeting applicable accounting and tax obligations.

Note: Request an itemised quotation covering both initial registration and annual renewal costs before selecting a jurisdiction.

Can an Offshore Company Open a UAE Corporate Bank Account?

Yes, an offshore company can apply for a UAE corporate bank account. However, approval depends on the bank's due diligence and eligibility policies.

Banks may request incorporation documents, shareholder details, UBO information, source-of-funds evidence and details of expected transactions. You can explore DhanGuard's business bank account assistance in the UAE for general guidance.

How Can DhanGuard Help?

At DhanGuard, we help international investors compare offshore jurisdictions and understand their registration requirements.

To recommend a suitable structure, we would first need to understand:

• The countries where your investments are located.
• Whether you intend to hold shares, property or other assets.
• Your expected ownership structure.
• Whether you need a UAE corporate bank account.
• Whether you plan to conduct active business operations in the UAE.

Based on these details, we can suggest suitable options and provide an estimate of incorporation and renewal expenses. You can also review our business setup packages.

My recommendation: An offshore company may suit your international shareholding and asset-holding objectives. However, review the tax and legal implications in the UAE and the countries where your investments are located before proceeding.

Best regards,

Hemant Katyal
DhanGuard