Setting up an offshore company in the UAE is a game-changer for global entrepreneurs. With unmatched tax benefits, privacy, and a thriving business environment, the UAE is the perfect destination for offshore company setup. This guide will help you understand everything about offshore company setup in UAE, including regulations, benefits, types of structures, and how you can get started.
What Is an Offshore Company in UAE?
An offshore company in the UAE is a legal entity established to conduct business internationally. These companies operate outside the UAE’s jurisdiction while benefiting from its business-friendly policies. Offshore companies differ from Free Zone companies as they cannot trade directly within the UAE but can open bank accounts, own property, and engage in global business.
Benefits of Offshore Company Setup in UAE
- Tax-Free Environment
Offshore companies in the UAE enjoy 0% corporate tax, no withholding tax, and no VAT on international activities. - Full Foreign Ownership
Unlike other business setups, offshore companies allow 100% foreign ownership without the need for a local partner. - Confidentiality
Offshore company structures ensure privacy for shareholders and directors. Information is not publicly disclosed. - Asset Protection
Offshore companies shield personal assets from business liabilities. - Property Ownership
In some jurisdictions like JAFZA, offshore companies can own property in Dubai. - Banking Benefits
Offshore companies can open corporate bank accounts in UAE banks, providing ease in managing global transactions.
Types of Offshore Business Structures in UAE
The UAE offers flexible legal structures for offshore companies. Here are the most common types:
- Limited Liability Company (LLC)
- Protects personal assets from business liabilities.
- Ideal for businesses requiring liability protection and global operations.
- International Business Company (IBC)
- Perfect for international trading and investment.
- Enjoys tax exemptions and minimal operational restrictions.
Pro Tip: A Seychelles International Business Company (IBC) offers tax advantages and operational flexibility if you’re an investor looking to expand globally.
Key Offshore Jurisdictions in UAE
Choosing the right jurisdiction is an essential step in offshore company setup in UAE. Each jurisdiction offers unique benefits, making it suitable for different business needs. Here’s an overview of the top options for offshore company formation in the UAE.
1. Ras Al Khaimah International Corporate Centre (RAK ICC)
RAK ICC is known for its cost-effective solutions and efficient incorporation process.
- Features:
- Quick and affordable setup.
- No requirement for a local shareholder.
- Complete confidentiality for shareholders and directors.
- Benefits:
- 0% corporate tax.
- 100% foreign ownership.
- No physical office required.
Ideal for startups or entrepreneurs seeking a budget-friendly offshore company setup in UAE.
2. Jebel Ali Free Zone Authority (JAFZA)
JAFZA is a premium jurisdiction located near Dubai, offering excellent infrastructure and additional benefits.
- Features:
- Allows offshore companies to own property in Dubai (subject to approval).
- Proximity to Dubai’s major business hubs and ports.
- Benefits:
- Tax-free business environment.
- Access to Dubai’s vibrant economy.
- Real estate ownership options for offshore companies.
Perfect for businesses wanting to combine offshore company setup with property investments in Dubai.
3. Ajman Free Zone (AFZ)
Ajman Free Zone provides a cost-effective option for offshore company formation with straightforward regulations.
- Features:
- Simplified setup process.
- Similar benefits to RAK ICC and JAFZA.
- Benefits:
- 100% foreign ownership.
- 0% corporate tax.
- Competitive pricing for incorporation and renewal.
Ideal for businesses looking for a low-cost alternative for offshore company formation in UAE.
How to Set Up an Offshore Company in UAE
Here’s a step-by-step guide to setting up an offshore company in Dubai or other UAE jurisdictions:
- Consultation and Planning
Work with business setup consultants in Dubai to understand your business needs and legal requirements. - Choose a Jurisdiction
Select between RAK ICC, JAFZA, or Ajman Free Zone based on your business goals and budget. - Define Business Activities
Clearly outline the scope of your business. Offshore companies can engage in trading, asset management, and investment holding. - Prepare Documents
- Passport copies of shareholders and directors.
- Proof of residence (e.g., utility bill).
- Bank reference letter.
- Memorandum of Association (MoA).
- Submit Application
Submit the required documents and application to the chosen jurisdiction. - Obtain Licenses and Registration
Once approved, receive the incorporation certificate and start operations. - Open a Bank Account
Set up a corporate bank account to manage global transactions.
Example: For a low-cost setup, RAK ICC offers quick incorporation and low fees.
Documents Required for Offshore Company Setup
| For Individual Shareholders | For Corporate Shareholders |
| Passport Copy | Trade License or Incorporation Certificate |
| Proof of Residence | Shareholders’ Resolution |
| Bank Reference Letter | Memorandum of Association (MoA) |
Need help with documentation? Let the best business setup consultants in Dubai handle this for you.
Offshore Company Regulations in UAE
Understanding regulations is essential for a successful offshore company setup in UAE.
- Shareholders: Minimum one shareholder required.
- Directors: At least one director necessary.
- Capital: No minimum capital requirement.
- Registered Agent: Appoint a registered agent for compliance.
- Bank Account: Offshore companies can open corporate bank accounts in Dubai.
Compliance and Reporting Obligations
- Annual Renewal
Offshore companies must renew registration every year by submitting fees and updated documents. - AML Compliance
Offshore companies must comply with anti-money laundering (AML) regulations and report suspicious activities. - Financial Records
While auditing is not mandatory, companies must maintain accurate records.
Offshore Company Cost in UAE
The offshore company cost in the UAE varies depending on the jurisdiction. For a Company Limited by Shares, here’s a breakdown of incorporation costs based on the duration of the setup:
| Duration | Cost (AED) |
| 1 Year | 3,000 – 4,000 |
| 2 Years | 6,000 – 7,000 |
| 3 Years | 9,000 – 10,000 |
This includes company incorporation, ensuring compliance with UAE regulations, and assistance with documentation.
Get a personalized quote for your offshore company setup from Bestax today!
Offshore Companies vs. Free Zone Companies
| Feature | Offshore Company | Free Zone Company |
| Business Scope | International | Local and International |
| Ownership | 100% Foreign Ownership | 100% Foreign Ownership |
| Tax Benefits | 0% Tax | 0% Tax |
| Trade within UAE | Not Allowed | Allowed |
Transparent and Competitive Pricing with Bestax
At Bestax, we ensure your offshore company setup in UAE is both affordable and stress-free. With over 19 years of experience and recognition as an FTA-approved agency, we offer unmatched expertise and support.
Our pricing is designed to meet the needs of startups, SMEs, and international businesses. Whether you’re interested in a Dubai offshore company incorporation or setting up in other UAE jurisdictions like RAK ICC, we make the process smooth and cost-efficient.
Get Started Today
With packages starting at just AED 3,000, setting up an offshore company has never been easier. Let Bestax handle your offshore company formation while you focus on growing your business.
Contact Bestax today to choose the best plan for your offshore company setup in UAE and take advantage of low-cost, high-value business solutions!
FAQs about Offshore Company Setup in UAE
What is the difference between offshore and Free Zone companies in Dubai?
An offshore company in Dubai is established to conduct business internationally and cannot operate within the UAE market. It offers benefits like 0% corporate tax, full foreign ownership, and confidentiality. On the other hand, a Free Zone company can operate locally and internationally, with similar tax benefits but additional infrastructure access. Offshore company setup in UAE is ideal for global operations, while Free Zone companies are better for businesses requiring local presence.
How do offshore companies work?
Offshore companies in UAE are legal entities established in special jurisdictions like RAK ICC, JAFZA, or Ajman Free Zone. They operate outside the UAE, focusing on international business activities such as trading, holding investments, and managing assets. These companies benefit from tax exemptions, privacy for shareholders, and flexible regulations, making them a preferred choice for entrepreneurs seeking global reach.
Can I open an offshore company in Dubai?
Yes, you can. Dubai offshore company incorporation is possible through jurisdictions like JAFZA. These jurisdictions allow businesses to register an offshore company, providing advantages like asset protection, tax efficiency, and confidentiality. Bestax, a trusted business setup company in Dubai, can guide you through the entire process seamlessly.
How much does it cost to form an offshore company in Dubai?
The offshore company cost in UAE varies based on the jurisdiction and services required. For example, setting up a Company Limited by Shares can cost AED 3,000 for one year, AED 6,250 for two years, and AED 9,000 for three years. These costs include incorporation and compliance. Contact Bestax for a detailed and affordable quote for your offshore company setup in UAE.
Which is the cheapest offshore company formation services provider in UAE?
Bestax is one of the most affordable and reliable business setup consultants in Dubai, offering low-cost business setup in Dubai. With over 19 years of experience and recognition as an FTA-approved agency, we provide end-to-end support for offshore company setup while ensuring compliance with UAE regulations.
How do I set up an offshore account in Dubai?
To open an offshore account, you must first complete the offshore company formation process in UAE. After incorporation, you can open a corporate bank account in Dubai with assistance from your registered agent. Bestax ensures a smooth banking process, helping you comply with bank requirements and documentation.
Do offshore companies pay taxes in the UAE?
No, offshore companies in Dubai are exempt from corporate tax, withholding tax, and VAT. This makes offshore company setup in UAE highly attractive for businesses looking to maximize profits and operate in a tax-efficient manner.
