Top 6 Reasons to setup a UAE Offshore Trade Licence

In this article, Ryan Kuchel Director of www.incorporate.ae, explores the options available for those looking to setup a trade licence in Dubai, United Arab Emirates and establish some recommendations based on specific client requirements and objectives.

At a high level, you need to become familiarized with the terms "Mainland," "Free zone," and "Offshore" prior to starting a company in Dubai, UAE. In all three jurisdiction categories, there are advantages and disadvantages, and relevant opportunities for business owners with specific goals.

Offshore Companies, UAE - Suitability

Offshore company’s primary purpose is for exactly that, business’ whose trade is focussed outside of the UAE.

• An offshore business trade licence will enable you to have a trading or consultancy business outside of the UAE together with the benefit of a local banking account.

• A further advantage of an offshore trade license is that even with a virtual only presence, the business owner can purchase properties in the UAE under the company's name.

Buying real estate as a foreigner:

You are free to own property in Dubai as a foreigner in specific designated freehold locations. This is to not be confused with ‘free zones’ which will be explained later in a following article. Many newly developing areas are freehold designated whilst many earlier developed areas are leasehold only.

You can prefer to buy them personally or by using a company license. There are, consequently, predefined factors which must be fulfilled.

In Dubai, you can purchase property under your offshore company license if it is registered in RAKICC or Jebel Ali Free Zone Area only. Previously, it was restricted to JAFZA Offshore companies to purchase freehold properties in Dubai.

Offshore companies registered under international jurisdictions such as Malta, Jersey Island and the various Caribbean Offshore jurisdictions are not permitted to own properties in Dubai, or the UAE for that matter.

Advantages of Owning Property Using Company License:

Although owning a property has a range of benefits, having a business license to own the property presents you with other benefits as well:

• Privacy: Using an offshore company license to own a property will ensure to protect your privacy. The property will be held in the name of the corporation, which helps to protect your identity from foreign governments and public records. So protecting your confidentiality.

• Tax Savings: As an owner of a property under an offshore company license, you are 100% exempt from paying tax.

• 100% Ownership: When you start an offshore company in the UAE, you can own 100% as a foreign national and do not require a local Emirati partner to be approved for possession of a property.

• Inheritance: Owning a property under an offshore company license in the UAE exempts your property from following the sharia law of inheritance.

Having setup Offshore companies for many clients, Ryan Kuchel adds ‘Establishing an Offshore Trade Licence is a convenient way to trade offshore, providing appropriate protection of revenues, enabling local banking amenities and offering an opportunity to purchase and hold property assets in the UAE in a confidential and financially efficient manner.’

For more information you may please contact Ryan Kuchel – ryan@incorporate.ae or Whatsapp chat +971 55 415 3221.