# Running an offshore company while resident in UAE



## philyand (Mar 31, 2013)

Hi all,

Just reaching out to see if anyone here has experience of running an offshore company while resident in UAE?

The structure we are looking at is that the company:
- is incorporated outside of UAE (Dominica for example)
- does not provide any goods or services within UAE as it is a totally online business with UAE not a customer location
- has it's owners reside in the UAE (us) and we will manage the online site and dealings by phone / web
- business banking is all offshore
- website will not be hosted in UAE

Essentially we live here, work here and we would run this business from here - but it is an international business incorporated elsewhere

So the question is really would we need a company here to be able to operate and bring money into country from this business? We don't think we would but wondered if anyone here has any experience of this sort of model?

We are thinking there must be hundreds of other people practically doing this by running their business in India whilst being resident here for example?

Note we are not interested in a freezone business here as we want the offshore structure offered by other locations. 

We are of course making professional enquiries also but first hand experience is always great 

thanks in advance,

Phil.


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## Malbec (Jan 2, 2014)

The reason why most people go for local "onshore" free zone company is residence visa, local presence, limited ability to trade locally (within free zone). Also free zone companies being onshore have access to Double Taxation Treaty (DTT) which might be important for some.

I see however no reason why you should not proceed as described if you don't require anything above.


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## Juu (Jan 22, 2013)

I don't see the need at all to trick the system further. 

I was looking at a similar structure when moving to Dubai as I already have an offshore structure. I decided not to proceed and finally incorporated in a freezone for the following reason:
- No residency visa, which is a prerequisite to rent an apartment / villa, and to open a bank account with credit card (no exchange fees everytime I make a payment)
- Impossible to have an office and recruit employees
- It is forbidden to run a business from your home. The definition of home is tricky as my lawyer told me it could include a long hotel stay (6 month+). But I find it hard to justify. 

If you want to run your online business from Dubai and stay a year or more in a hotel, I assume you can also afford a trade license at 15,000 AED, 2 visas at 5,000 AED and a flexi desk that will cost close to nothing. 

You would clearly be on the safe side.

No money has to flow in your account, and your assets are protected under your offshore holding. 

Please let me know what other feedback you get on that, as this is not a straightforward decision for other entrepreuneurs


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## cautious_mover (Dec 9, 2009)

You main concern is banking. Where will you have your account for your offshore (non UAE) company? You will find it very difficult to open an account here. All of the major UAE international banks have closed the accounts of non UAE offshore companies (i.e. BVI).

And if you are thinking to bank in the jurisdiction of your new company, think again! Its virtually impossible to open an account say in BVI unless you are willing to deposit USD50m minimum and can satisfy the due diligence which takes about 6 months.


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