Important information about the Free Zone EntityThe prerequisite for the establishment of local and international branches is, that the parent company is in business for a minimum of one year (this requirement is also valid for subsidiaries).
The offshore company is not entitled to maintain business relationships with contractors (natural persons or companies) in the Emirates (Art. 15 section 1 Reg). Furthermore, the offshore company is not allowed to open up branches in the Emirates.
If the enterprise, during its lifetime, still aims to maintan business relationships with its partners in the UAE, it is necessary to apply for a license at the administration (Art. 15 section 3 Reg).
The amount of share capital is to be set by the shareholders in the course of the foundation of the company. However, there is no minimum capital required. The founders are thus free to set the amount of the capital. The capital does not need to be deposited in cash at the point of the foundation.
The offshore company (IBC) is not obliged to employ their own staff in the Emirates or to rent office space. Only a business address is required.
The offshore company is not allowed to purchase real estate in the Emirates. There are, however, exceptions, where the purchase of real estate (e.g. on the Palm islands) is permitted (Art. 15 section 1 und 2 Reg). The company also needs at least one director and one secretary (Company Secretary) (Art. 32, 43 reg).