What Is?
What Is An Offshore Company In Dubai, UAE?
An offshore company in Dubai (also known as an International Business Company or IBC) is a legal entity established in the UAE primarily for conducting business outside the country.
Operations
Operations Outside UAE: Offshore companies cannot conduct business or employ people within the UAE.
All operations must occur outside the country.
Local Presence: A separate free zone or mainland company is required to operate within the UAE.
Benefits of Offshore Company
Tax advantages
(often no or minimal taxes)
Enjoy minimal corporate and zero personal income tax, maximizing your profits. Double Taxation Treaties: UAE has agreements with over 137 countries, preventing businesses from being taxed twice on the same income
100% Foreign Ownership
No local partner is required, allowing you to retain full control of your business.
Asset Protection
Dubai offers strong legal frameworks and confidentiality to safeguard your assets.
Global Access
Strategically located between East and West, Dubai is a hub for international trade.
Excellent Infrastructure
Benefit from world-class infrastructure, logistics, and modern business amenities.
Easy Setup
The company formation process is relatively streamlined within Dubai’s Offshore.
Bank Account
Ability to open corporate bank accounts.
Also, you must know that offshore companies are not allowed to carry on certain businesses such as Financial, Insurance, Media, and Aviation.
Example: A multinational technology company uses an offshore company in the UAE to manage intellectual property rights and licensing agreements, minimizing its global tax burden.
Difference
Offshore vs. Freezone: Understanding the Key Differences
| Feature | Offshore Companies | Freezone Companies |
|---|---|---|
| Location | Can conduct business globally | Restricted to operating within the free zone area |
| Taxation | Complete tax exemptions on offshore income | May benefit from tax breaks on imports and exports, usually pays corporate tax on income generated within the free zone |
| Business Activities | Often has restrictions on the types of business it can conduct within the country where it is registered | May specialize in specific industries |
| Regulation | Subject to minimal regulation | Subject to the regulations of the specific free zone authority |
| Confidentiality | Offers maximum anonymity for ownership | Registration details are publicly available |
| Residence Visas | Typically cannot sponsor residence visas for employees or owners | May offer residence visa options |
Why Choose UAE For Offshore Company Formation?
Dubai, geographically situated at the juncture of Europe, Asia, and Africa, has grown into a global business center. Its business-friendly atmosphere, state-of-the-art infrastructures, and favorable regulatory framework make it an unbeatable choice for Offshore Company formation.
Here is why Dubai stands out
Strategic Location
The strategic location of Dubai, coupled with the ease of access to markets across continents, makes it desirable for those looking to expand the international market and enhance their company presence. This makes it a perfect place for companies to tap into multiple markets and grow internationally.
Business-Friendly Environment
Dubai’s effort to create an ideal investment environment is highlighted by the smooth procedures, avoided bureaucracy, and investor-friendly policies. The city is a breeding ground for innovation and entrepreneurship, thus being a perfect hub for startup companies.
Robust Legal Framework
The legal environment of company formation in UAE complies with global standards and is transparent. The regulatory environment provides a good ground for enterprises; it guarantees compliance with the law and stability.
Safeguard Your Assets
Offshore structures act as a shield for your investments, intellectual property, real estate, and other investments from the operating company.
Tax Advantages
Offshore companies have 0% corporate tax
Double Taxation Treaties: UAE has agreements with over 137 countries, preventing businesses from being taxed twice on the same income
offshore company jurisdiction
Understanding The Jurisdiction For Offshore Company Registration In Dubai
Choosing the jurisdiction depends on several factors, such as the nature of business, laws and regulations, etc.
In the United Arab Emirates, Offshore Companies are primarily offered in two main jurisdictions:
Key Features Of RAK ICC Offshore Company
- There are no minimum share capital requirements
- A minimum of one director is required
- Share capital can be unpaid
- No physical office is required, registered agent’s office address will be the address of the company.
- The company can be effortlessly redomiciled and relocated from other jurisdictions to the RAK ICC offshore in the UAE.
JURISZONE Offers Services For You To Set Up At RAKICC
Foundation
It is a unique type of offshore entity in the UAE offered by the Ras Al Khaimah International Corporate Centre (RAKICC), It functions as a hybrid between a traditional trust and a company.
Family Office Setup
The establishment of a Family Office is an exclusive service tailored for families with substantial wealth. It aims to provide customized wealth management solutions catering to their unique needs and aspirations. This approach enables the family’s values to be safeguarded and financial prosperity to be sustained through generations.
RAKICC is the most cost-effective and permitted-to-own real estate property in Dubai and other emirates of the UAE. When it comes to local company law, offshore companies are required to appoint an approved registered agent.
Key Features Of JAFZA Offshore Company
- A minimum of one shareholder is required.s
- Located in one of the oldest Free Zone in the UAE
- The minimum number of directors is two
- There is no requirement for minimum share capital
With the services of Juriszone, you can establish your company seamlessly in any of the Offshore Jurisdictions that best suit your specific business needs.
Most preferred business activities for offshore companies in Dubai
- Holding Companies
- IP (intellectual property) holding companies
- Real Estate Holding
- Shipping Companies
- Management Consultancy
- Professional services and consultancy
- Online advertising companies
- General trading companies
- Investment activities
At Jursizone, we are always here to help you; our experts will guide you in deciding the best course of action.
Most Preferred Business Activities For Offshore Companies In Dubai
- Holding Companies
- Shipping Companies
- Online Advertising Companies
- Real Estate Holding
- Management Consultancy
- General Trading Companies
- IP (intellectual property) Holding Companies
- Professional Services and Consultancy
- Investment Activities
At Jursizone, we are always here to help you; our experts will guide you in deciding the best course of action.
Steps To Start An Offshore Company In Dubai, UAE
For offshore company registration in UAE, you must specify the business types you will be engaged with.
The Different company structures are:
- Company limited by shares: Company Limited by Shares or CLS means that the shareholders’ liability to the company’s creditors is limited to the capital that they have originally invested. The company name must end with words such as “Incorporated,” “Inc,” “Limited,” and “Ltd.”
- Segregated Portfolio Company: A Segregated Portfolio Company (SPC) is limited by shares. An SPC can create up to two segregated portfolios. This is done to separate the assets and liabilities of the company from other liabilities and assets of the company.
- Special Purpose Vehicles: SPVs are separate legal entities created to isolate financial and legal risks. They ring-fence assets and liabilities for specific transactions or projects. SPVs ensure that only the designated assets are exposed to the liabilities of that particular transaction or venture, providing risk segregation.
- Transfer of Domicile: Also known as migration, it is the process of moving a company’s registration and governing laws from one jurisdiction to another, while maintaining the same legal identity. It involves transferring the company’s place of incorporation across borders.
- Holding Company: An entity whose primary purpose is to own controlling interests (stock/membership) in other companies, rather than directly operating a business itself or providing products/services. Its main role is to control and oversee a group of subsidiaries.
Depending on your business activity, you may require 3rd party approval. We will collect and prepare the required documents and assist you setting up your business entity.
- Passport copies of the shareholder and director
- Latest address proof of share shareholder and director
For corporate shareholders:
- MOA and AOA attested by MOFA
- Trade license attested by MOFA
- Certificate of Good Standing
- Certificate of Incumbency
- Board Resolution attested by MOFA
- Passport copy of the authorized signatory
Our team will handle the submission of your company documents to RAK ICC. Expect your incorporation certificate which is equivalent to a trade licence from RAK ICC within 2-3 working days.
After registering your company, you get to open a corporate bank account subject to bank’s policy in the UAE.
Incorporation Cost
Offshore Business Incorporation Costs
We provide you with business setup packages to ensure a successful entry into the UAE market.
Offshore
International businesses and asset protection
One-Time Setup
$3,000
- Yearly renewal starts at $3,000
Why Choose Us
Why Choose Juriszone As Your Trusted Partner?
We offer comprehensive end-to-end services for seamless and fully compliant offshore company registration in UAE and company formation, including:
- Reliable registered agents for RAKICC offshore company setup
- Experienced team of lawyers, auditors, accountants, consultants
- Hassle-free and legally compliant offshore company registration in Dubai
- Assistance with Economic Substance Regulation requirements if needed
- Company secretary, nominee shareholders/directors services
- No physical presence required for offshore company opening
- No leased premises or staff employment needed for typical offshore companies
- But can arrange these requirements if necessary for your case
- Company registration, bank account opening assistance
We Help You To Start your Offshore Company In Dubai and UAE
Frequently Asked Questions
Different costs which are involved to maintain an Offshore company are:
- Annual license renewal fees
- Registered agent fees
- Bank account maintenance fees
Additional variable costs: nominee services, accounting/auditing, compliance such as Ultimate Beneficial Ownership [ UBO ] and Economic Substance Regulations [ ESR ] filing.
Yes, a company can open a corporate bank account in UAE. However, it will be subject to the bank’s policy to open a business account.
- Auditing: Offshore companies are usually not required to perform annual audits. However, some might require an audit if your offshore company exceeds certain financial thresholds or if it is subjected to paying corporate taxes.
- Reporting: Unless your company is subjected to corporate tax you don’t need to submit audited financial statements to authorities. However, offshore companies are still expected to maintain proper accounting records. These records might be requested by banks or government authorities.
- Limited Liability Company [ LLC ]
- Segregated Portfolio Company [ SPC ]
- Special Purpose Vehicles [ SPV ]