Forming an offshore Company, offshore Bank, Trust
“In a global economy, the use of offshore centres plays a vital role in supporting a variety of corporate cross-border transactions, as well as facilitating the wealth preservation strategies of high net worth individuals”.
Our international corporate and trust services are built around this proposition.
Due to ever increasing government legislation (IN Most tax based countries) designed to erode personal and corporate wealth, proper use of offshore company and trust have become a necessity for the protection and insulation of income and capital. This is now in fact a necessary competitive edge for companies with international operations.
Forming an offshore Company, an offshore Bank, Trust, obtaining a second passport and preparing a "Will" are some of the instruments employed to achieve these objectives. Freedom from taxation and exchange controls are important reasons for the formation of an offshore company. A Trust is the single most sophisticated instrument for flexible tax, estate and financial planning. When established offshore, it provides most tax efficient distribution plan of wealth during and after the high net worth individuals (Settlor's) life time. Will is some what carefully thought formal commitment in writing with the witness, showing how one would like ones estate to be distributed after death.
All the above complex situation needs, requires, careful understanding and planning which our experts in Horwath Mak are fully equipped with and ready to share with you.

The offshore possibility has basically been set up to cater for companies who need to have a regional "tax relief-invoicing-facility" - There is no minimum capital required and also no need to set up an actual office facility. The off-shore regulations have been issued according to international standards and the company will have to register minimum 2 directors, keep financial records and issue an annual financial report audited by a professional auditing company approved by JAFZA.

• To carry on business with persons residing in the United Arab Emirates.
• Own an interest in the real property situated in the U.A.E. other than approved by authority.
• To carry on banking, insurance, re-insurance, insurance agency or insurance broker.

1. Local companies allowed to deal with:
Legal consultants, accountants, management companies, etc carrying on business within the UAE.
2. Any bank in the UAE for the purpose of conducting its routine operational transactions.
3. If an offshore company wishes to conduct trade or other business in the free trade zone or elsewhere in the UAE, it must obtain the appropriate licence to conduct the trade or other business activity from the competent authorities.
4. Capital Requirement: No minimum required, however a minimum of (US$2,700) is recommended to begin with.
5. Directors: A company must have at least two directors and one company secretary.
6. Real Estate: An offshore company is only allowed to rent/lease space for keeping a registered office. It can own real estate property on the Palm Islands, Jumeriah Islands, any properties owned by Nakheel Company L.L.C & Emaar properties by specific permission available to foreigners.
7. Shares: All shares must be fully paid when allotted; No bearer shares shall be allowed. No different classes of shares allowed.
8. Registered Agent :
An offshore company shall at all times have a registered agent in Dubai to which all communications and notices may be addressed.(Horwath Mak shall act as registered agent for an annual fee ).
9. Accounts & Audit : Every offshore company shall keep accounting record; accounts shall be preserved for a period of 10 years from the date on which they were made. An offshore company's accounts shall be approved by the directors and to be audited by an approved auditor.

10. Winding Up : Winding up an offshore company may be by one of the following : - Summary under chapter 1 of part 13 of the regulations. - By its creditors - By the court under the UAE commercial transactions Law no. 18 of 1993.

a. Personal Address proof for all shareholders (Original Electricity/Telephone Bill)
b. Original copy of the bank reference from the individual directors bank. The letter should state that the individual is banking with the bank since when and the conduct of account is satisfactory or promoters are of good means and reputed
c. Application duly filed & signed along with the Memorandum & Articles of proposed company.
d. CV of Directors
e. Copy of the passports of the promoters.
f. Brief profile of the existing business of the promoters along with last year balance sheet, if any.
g. Directors to be present in Dubai to sign the document or power of attorney in favour of Horwath Mak to set up an offshore company. Such power of attorney to be attested Notary Public, Dubai Courts

Other Off Shore:

RAK Free Trade Zone announced the launch of International Company's registry which allows foreign investors to register offshore companies in the Free Zone and benefit from the Zone's tax free status without the need to establish a physical presence in the emirate.