UAE is considered as the business hub in the Middle East. It offers different jurisdictions to set up a business in Dubai. From mainland, free zone to offshore, you can choose what suits best according to your long-term business goals. However, the foreign experts mostly choose the option of offshore company setup in Dubai. The reason is simple, there is no need for physical presence required, no restrictions on money transactions with allowance of setting up an offshore bank account in the UAE.
In this article, let’s discuss in detail about the offshore company setup in the UAE, the benefits and the process step by step. Let’s get started!
Benefits of Offshore Company Setup in the UAE
- Get benefit from the low corporate tax rates while setting up offshore companies in Dubai.
- Business owners have 100% foreign ownership without any local sponsor requirement.
- Offshore company setup offers protection on assets, investments and intellectual property.
- Investors and shareholders are ensured with high confidentiality and privacy.
- Offshore companies set up in Dubai usually offer no restriction on money transactions while offering multi-currency banking setup.
- Offshore is ideal for international trading, and overseas operation with ease without any restrictions.
How to register an Offshore Company in UAE?
In order to operate any business in the offshore jurisdiction, you must obtain a trade license in the following chosen offshore. Let’s check out step-by-step the process to register an offshore company in the UAE.
Choose your business activities
The first step is to choose the right business activities and jurisdiction.
Trade name reservation
After choosing your business activities, you must choose a unique trade name.
Submit required documents
After getting a trade name reservation certificate, you can gather all the documents and submit for initial approval.
Obtain an offshore trade license in the UAE
You will obtain a trade license in one of the chosen offshore jurisdictions in the UAE.
Open a corporate bank account
After you obtain your license, you are eligible to apply for a corporate bank account in the UAE.
Need Expert Advice?
Contact the team at Farahat & Co. for professional support and expert insights for businesses operating in the UAE.
UAE Offshore Jurisdictions
UAE has three main offshore jurisdictions to choose for operating your business. These jurisdictions are designed to support international business structures, asset holding, and cross-border investments. Each option allows investors to choose a structure that best aligns with their business goals, banking needs, and long-term expansion plans. It includes:
- RAK ICC
- JAFZA Offshore
- Ajman Offshore
RAK ICC (Ras Al Khaimah International Corporate Centre)
RAK ICC is best for global businesses, holding companies, IP, and investments.
Key highlights
- 0% corporate tax on foreign income
- Low corporate tax rates
- No VAT on services and goods
- Strong international reputation
- Accepted by many global banks
- 100% foreign ownership
- Fast digital incorporation
JAFZA Offshore
JAFZA Dubai Offshore is considered the best choice for owning property in Dubai or holding any UAE assets.
Key highlights
- Buy real estate in Dubai
- Strong legal proceedings
- 0% corporate tax
- 0% personal income tax
- 100% foreign ownership
- Multi-currency bank accounts setup
- A bit higher setup & renewal costs than RAK ICC
Ajman Offshore
Ajman Offshore is regulated by the Ajman Free Zone Authority (AFZA) in the UAE. It’s designed especially for international business activities, holding assets, and investment purposes. It is not for those businesses that are willing to operate inside the UAE local market.
Key highlights
- 100% Foreign Ownership
- Confidentiality & Privacy
- No Physical Office or Staff Required
- Low Cost and Quick Setup
Offshore Companies vs. Onshore Companies in the UAE
In offshore companies, the benefits are considered more as compared to other jurisdictions. Onshore companies usually refer to the mainland. The other jurisdiction includes UAE free zones. Each jurisdiction has its own unique features, however, the below-mentioned comparison is an example of showcasing why offshore companies are considered top-notch choices for foreign business owners.
Feature | Offshore | Free Zone | Mainland |
Operate in UAE | Not required | Limited | Required |
| Not required | Depends | Yes | |
Physical Office | Not required | Optional | Required |
Bank Account | Required | Required | Required |
Ownership | 100% | 100% | 100% |
Cost by Offshore Company Formation in the UAE
The costs of an offshore company in the UAE vary. Offshore companies have more to maintain in comparison to mainland companies because they are exempt from costs such as visas and sponsorship costs.
On an average, the offshore company formation fees range from AED 10,000 to AED 18,000. It typically includes company registration fees, government fees, and the registered agent fees. However, the fees vary depending on the offshore location of choice from popular offshore jurisdictions such as RAK ICC, JAFZA Offshore, and Ajman Offshore.
The additional costs are also expected to include the fee associated with opening a corporate account, which can vary from AED 3,000 to AED 7,000, based on the specific banking charges. In addition, a minimum amount might be expected to be maintained in an account. The charges expected for renewing a license annually range from AED 8,000 to AED 15,000.
Need Expert Advice?
Contact the team at Farahat & Co. for professional support and expert insights for businesses operating in the UAE.
Offshore Company Formation – FAQs
What is the cost of an offshore company set up in the UAE?
The cost typically includes company registration with the relevant authorities, government fees, registered agent services, and preparation of required documents.
Is forming a company in an offshore location less expensive than forming a company on the mainland?
Yes. Offshore companies are generally more cost-effective because they do not require office space, visas, or sponsorship.
Are offshore companies required to pay annual fees?
Yes. Offshore companies must renew their registration annually. Costs usually start from AED 8,000 depending on the chosen offshore jurisdiction.
Are offshore companies able to open bank accounts in the UAE?
Yes. Offshore companies can open corporate bank accounts in the UAE, subject to compliance and due diligence requirements.
Is the cost of forming an offshore company a one-time charge?
No. While the registration cost is a one-time fee, there are annual renewal and maintenance costs, including bank-related charges.
How long does offshore company formation take?
Offshore company formation in the UAE typically takes 5–10 working days. It is advisable to consult an offshore agent to ensure a smooth and hassle-free process.
