One of the attractive options for potential investors and entrepreneurs wishing to register an offshore company in Dubai is its state as a dynamic commercial center. Along with these attractive options, the offshore company formation in Dubai is quickly becoming a favorite choice. “How long will it take?” is one of the many most essential questions everybody asks considering a business setup in Dubai.
Although the process is not very complicated, there are a couple of measures one has to take with care. On that note, this article on the topic ‘How long does the process take to establish an offshore company in Dubai?‘ will give all the information you need to make your big decisions.
Understand the Offshore Company Setup in Dubai
Let us first understand what a legal entity, often referred to as an offshore corporation, is before talking about the timeline. An offshore company would simply be defined as a legal entity formed outside of the country where the primary business operations are conducted. Because of its benefits related to asset protection, tax optimization, secrecy, and even convenience in conducting business across internationally, businesses usually capitalize on its usage.
Among the three main jurisdictions for the purpose of establishing offshore companies is Dubai:
JAFZA Offshore: JAFZA Offshore is famous because it has pretty heavy regulations.
RAK Offshore: Many business owners prefer RAK offshore company formation since RAK (Ras Al Khaimah International Corporate Centre) is cost-efficient.
Ajman Offshore: Very new to the business world, Ajman Offshore is known because of its smooth procedures.
Let’s now break down the processes to see just how long it takes to establish your offshore business in Dubai.
Research and Planning before Application
Take some time to do thorough research before submitting any documents. This will include deciding which offshore jurisdiction—from JAFZA, RAK, or Ajman—the best zone for the purpose of your company fits in. This stage is important as each one of the zones has different rules and benefits.
Once you have selected an appropriate jurisdiction, collect all the documents you would be needing and seek assistance from any qualified organization. You might get hold of an expert business coach to help you ease out all the procedure and maintain the laws as well as save a lot of time.
Preparation and Filing of Documents
Having completed your research, you will now need to get the appropriate paperwork to register an offshore company in Dubai. These are the standard documents needed for opening an offshore company in Dubai.
Identification of Shareholders: copies of the passport of every shareholder.
Verification of Address: Tenancy agreements or utility bills not more than three months old.
Letter of Bank Reference: This is for the purpose of establishing the fact that you have good standing with a bank.
Business Strategy: The overview of your business operations containing information on what the offshore company intends to achieve.
Preparation and collation of all these documents would generally take three to five days. You could also do this stage faster if everything is prepared and in its proper place.
Submission of the application
The final step is the submission of your application after preparing all papers. Depending on the jurisdiction in which you will file, you can do it either online or in person.
The actual submission is done extremely fast. How well your papers are handled and whether they first meet the requirements are the real time factors here. This step can be done within one or two days provided you have a qualified expert who will see all the documentations are correct.
Name Reservation and Regulatory Approval
Once the application is submitted on your end, the documents will be verified by the authorities. This can take around five to seven days depending on the workload of the authorities and how much detail your application has.
You will also need to select and reserve a company name during this phase, which must conform to the Dubai naming laws – no names that indicate involvement with the government, and no words that may be deemed insulting or religious. Normally, the process for the name reservation is easy and handled by the authorities.
Opening a Business Bank Account
You will now have the problem of opening a corporate bank account for your offshore company in Dubai. The procedure often takes a lot of time, considering the stringent compliance standards. Banks will take the due diligence review seriously to ensure that they establish your qualification and that everything is right according to their book.
According to the internal regulations of a bank and the time it might take for some papers to be verified, opening a bank account takes 10 to 15 days. For the ease of executing international transactions, many offshore businesses opt to open accounts with foreign banks.
Certificate Issue and Company incorporation
It is the last step whereby all things would be arranged, and you will get your certificate of incorporation, which proves that your offshore business is a legal existence in Dubai. Generally, it would take three to five days depending on the jurisdiction that you desire.
Things That May Affect Your Schedule
Though the normal period required in the process is usually within 20 to 30 days, various factors might cause the process to be expedited or delayed:
Paperwork completeness: You will save a lot of waiting time if everything gets completed perfectly in one attempt when you present all the paperwork.
Jurisdictional Differences: JAFZA, and some jurisdictions, make the process much more complicated and time-consuming compared to the other emirate Ajman.
Banking Compliance: Because of a lot of scrutiny checks for compliance, opening a bank account can be the most hassle-filled step.
Efficiency of your Consultant: A diligent consultant could save some days in this schedule if documentation is up to date and procedures are followed without a hitch.
It’s an extremely wise decision to set up an offshore business in Dubai, coming with various advantageous benefits but demanding careful preparation and close attention to detail. The procedure might be quite simple and easy if one prepares well and works with the right advisors.