Offshore Business Setup in UAE

An Offshore business is a legal entity registered in a UAE jurisdiction that offers 100% foreign ownership, zero corporate tax, and no requirement for a physical office space. It is often used for:

• Holding international investments or assets
• Facilitating global trade
• Intellectual property protection
• Owning real estate in designated areas of the UAE
• Acting as a holding company for other businesses

These companies cannot conduct business within the UAE’s domestic market directly, but they can maintain a UAE bank account and own property (subject to jurisdiction rules).

The UAE has three main jurisdictions for Offshore companies, each with its own unique advantages.

1. Ras Al Khaimah Offshore (RAK ICC)

RAK ICC is one of the most popular choices for Offshore company formation in the UAE due to its reputation and balance of cost and features.

• Key Advantages: It offers a highly cost-effective setup and a fast, efficient process. It is known for its strong privacy laws and a simple structure that allows for a single shareholder and director.
• Ideal for: International trading, consulting, and holding companies that do not require property ownership in Dubai.

2. Ajman Offshore

Ajman is a strong option for entrepreneurs who prioritize a very fast and affordable setup.

• Key Advantages: It is often cited as the cheapest Offshore business formation n in UAE. The registration process is very quick and simple, with minimal administrative steps.
• Ideal for: Entrepreneurs looking for a highly budget-friendly option to get started with international business quickly.

3. JAFZA Offshore (Jebel Ali)

JAFZA is a globally recognized and prestigious jurisdiction located in Dubai.

• Key Advantages: This is the only Offshore jurisdiction in the UAE that allows a businesses to directly own real estate in specific designated areas of Dubai. This makes it an invaluable option for property investors.
• Ideal for: Investors who want to hold and manage real estate assets in Dubai through a corporate structure. Note that it is generally a more expensive option and requires a minimum of two directors.

Ideal for: Investors who want to hold and manage property in Dubai through a corporate structure.
Explore permitted activities: Check the full list of  permitted list of  business activities in JAFZA

How to Choose the Right UAE Offshore Jurisdiction?

Choosing the right zone is crucial. Here’s a simple guide to help you decide:

• Type of Business Activity: What will your business do? If you are a consultant or an international trader, RAK ICC and Ajman are excellent. If you want to hold property in Dubai, JAFZA is the only option.
• Cost vs. Features: Ajman is the most affordable, RAK ICC is a great mid-range option with excellent features, and JAFZA is the most expensive but offers the unique benefit of real estate ownership.
• Real Estate Ownership Rights: If owning property is a key part of your business strategy, you must choose JAFZA.
• Bank Account Setup Success Rates: All three jurisdictions are well-regarded by UAE banks. However, having a professional partner to assist with the bank account opening process significantly increases your chances of success.

Note: If your goal is to operate within the UAE market and hire locally, consider a mainland business setup instead. For residency visas and full ownership within the UAE, a free zone business setup in UAE might be a better fit.

The UAE's Offshore jurisdictions offer a compelling list of advantages that make them a preferred choice for international business.

• 100% Foreign Ownership: Unlike some other business types, Offshore companies in the UAE allow for complete ownership by foreign individuals or companies, with no requirement for a local partner. This gives you full control and autonomy.
• Enhanced Privacy: The names of shareholders and directors are not listed on a public register. This high level of confidentiality is a key benefit, offering significant protection for your financial affairs. However, beneficial ownership information must be maintained and disclosed to UAE authorities under UBO/AML rules.
• Asset Protection & Segregation: An Offshore business provides a strong legal shield, separating your business assets from personal assets. This structure is a powerful tool to protect your wealth from political instability and legal claims.
• Global Banking Access: You can open a multi-currency corporate bank account in the UAE. This gives you access to a stable, world-class banking system for international transactions, without any currency restrictions.
• No Physical Office Requirement: There is no need to rent a physical office, which makes the Offshore business setup in the UAE highly cost-effective. You will use a registered agent’s address for all official purposes.
• No Annual Audit Requirement: In most Offshore jurisdictions, the usually mandatory audit requirements for mainland companies aren’t imposed on Offshore ones.

Launch your UAE business with Safe Ledger’s expert guidance – explore our Business Setup Services in UAE.

An Offshore Business is a versatile tool that can serve a wide range of needs.

• International Traders: For those involved in import, export, and international trade, an Offshore business simplifies global transactions and supply chain management, offering a tax-free hub.
• Consultants: Professionals providing services to international clients can benefit from a tax-efficient structure, allowing them to manage their earnings with greater flexibility.
• Holding Companies: Businesses and individuals looking to hold shares in other companies, both locally and internationally, can use an Offshore business for asset protection and strategic management.
• Property Investors: As we will discuss, some Offshore zones allow for the ownership of real estate in the UAE. This is a crucial benefit for property investors seeking privacy and tax efficiency.
• Intellectual Property (IP) Owners: An Offshore business is an excellent structure for holding and managing patents, trademarks, and copyrights, offering a secure way to license them globally.
• Inheritance Planning: An Offshore business simplifies the process of passing on assets to heirs, avoiding complicated and lengthy local inheritance laws.

Learn why an Offshore setup could be ideal for you – check out our Dubai Offshore Company Formation benefits guide.

Top Industries for Offshore Business Setup in the UAE

Offshore companies are well-suited for several key industries:

• International Trading and E-commerce: Handling global transactions and managing supply chains.
• Consultancy and Professional Services: Offering expertise to international clients.
• Holding and Investment: Managing a portfolio of assets, including shares, funds, and properties.
• Intellectual Property (IP) Holding: Holding and licensing intellectual property rights.

Here are the basic documents one need to form an Offshore business in UAE:

Documents for Individual Shareholders:

• Passport Copy: A clear, color copy of the passport for each shareholder, director, and secretary.
• Proof of Residence: A recent utility bill (less than 3 months old) to confirm your address.
• Bank Reference Letter: A letter from your bank confirming that you have a good relationship with them.
• CV (Curriculum Vitae): A short summary of your professional background.
• Business Plan: A brief summary of what your business will do.

Documents for Corporate Shareholders:

If your Offshore business will be owned by another, you will need to provide these documents for the parent business:

• Certificate of Incorporation: Attested copy of the official document showing the business is registered.
• Memorandum and Articles of Association (MOA/AOA): Documents that outline the business’s rules.
• Board Resolution: A legal document from the parent business's board approving the setup of the new Offshore company.
• Passport Copies: Passport copies of the directors of the new Offshore business.

The process of forming an offshore business in the UAE is streamlined and efficient—especially when assisted by a knowledgeable registered agent or consultancy.

1. Initial Consultation: The business goals are assessed and then the business activity is selected for the most suitable offshore jurisdiction (e.g., RAK ICC, Ajman Offshore, or JAFZA Offshore).
2. Document Preparation: Preparation and notarization of required documents such as passport copies, proof of address, bank reference letters, Memorandum & Articles of Association (MOA & AOA), and any beneficial-ownership information, takes place.
3. Registration & Submission: Your authorized registered agent submits the application to the offshore authority, coordinates approvals, and manages all communication.
4. Certificate Issuance: Once approved (typically within 2–7 working days, depending on jurisdiction), you’ll receive the Certificate of Incorporation and related corporate documents.
5. Bank Account Assistance: We guide you through opening a corporate bank account—local or international—tailored to your business needs.

The total cost for an Offshore business setup in UAE varies based on your chosen jurisdiction and the services you need. We provide a transparent breakdown of all fees.

Costs vary by jurisdiction and selected service levels. Below is a comparative breakdown.

RAK ICC Offshore (Ras Al Khaimah)

• Government fees and agent services: Approx. AED 7,500–11,000 for the first year
• Total costs may range from AED 7,200 to 13,600, depending on the package.

For a detailed overview of formation costs, legal benefits, and registration steps, visit our complete here: RAK  Offshore Business Setup

Ajman Offshore

• Setup: license fee around AED 4,300, agent fee about AED 2,999, bank assistance—approx. AED 1,000
• Renewal and optional nominee services: e.g., renewal AED 5,999; nominee director/shareholder each AED 2,999

To understand why entrepreneurs choose Ajman for its affordability and speed, check our Ajman Offshore Business Setup page.

JAFZA Offshore (Dubai)

Starting cost: From AED 12,000–18,000, typically higher owing to prestige and ability to hold property in Dubai.

Discover the full process, property ownership rules, and documentation, explore here: Jebel Ali Offshore Business Setup

Additional Cost Components Across Jurisdictions:

• Document attestation/notarization: AED 1,000–2,000
• Bank account support: AED 3,000–5,000
• Nominee services (optional): AED 2,000–3,000 annually
• Annual renewals: RAK Offshore AED 5,000–15,000, Ajman Offshore moderate, JAFZA Offshore on the higher side.

If your primary focus is on cost, Ajman and RAK ICC are the best choices. Ajman, in particular, offers some of the most affordable packages for Offshore business formation in the UAE.

It is important to remember that while cost is a factor, you should not choose a jurisdiction based on price alone. Consider your long-term business goals, such as the need to own property or the reputation of the jurisdiction, to make the right decision.

For a broader understanding of costs across all UAE business types, including mainland and free zone options, see our detailed guide on UAE Business Setup Cost

UAE Offshore companies must follow a clear set of rules to maintain their legal standing.

• Registered Agent: You must appoint a licensed registered agent to act as your business's official contact with the authorities. This agent acts as the official liaison between your company and UAE regulatory authorities.
• business Name: The brand name must end with "Limited" or "Incorporated" to signify its corporate structure. Names may be in English or Arabic, and must not duplicate existing entities. Certain words, such as those implying governmental or financial authority, religious or public associations, are restricted or require additional approval.
• Annual Renewal: Like other business types in the UAE, offshore companies must renew their trade license annually (within three months of incorporation and every year thereafter), paying the applicable fees and updating company details as needed.
• Record Keeping: You are required to maintain comprehensive financial and commercial records, including:
  • Balance sheets, profit & loss accounts, wages, fixed asset registers, inventory, contracts, invoices, and correspondence.
  • These records must be retained for at least 7 years (some circumstances, such as real estate-related transactions, also warrant 7-year retention).
  • Digital record-keeping is acceptable provided the records are complete, legible, secure, and readily accessible.
  • The UAE Commercial Companies Law reinforces this requirement, mandating a minimum 5-year retention of accounting records at the head office.

If you want to explore about offshore companies, learn more about the fundamentals of offshore company formation in our detailed guide: What is Offshore Company Formation

While the benefits are many, it's important to be aware of the limitations.

• You cannot carry out local UAE business: Offshore companies are usually prohibited from trading inside the UAE or signing local commercial contracts as a UAE trader. If you plan to operate locally or hire staff in the UAE, consider a free zone or mainland business.
• Residence visas generally not available: Offshore companies normally cannot sponsor UAE residence visas for owners or employees. If residency is needed, an alternative structure is required.
• Property ownership is selective: Only certain Offshore regimes (for example, JAFZA Offshore and some RAK ICC structures) permit ownership of designated UAE real estate. Rules differ by jurisdiction, so it's crucial to confirm before you plan property purchases.

Compliance obligations — Offshore entities may be subject to the UAE’s Economic Substance Regulations (ESR) if they carry out relevant activities (e.g., IP, holding company, fund management), must maintain accurate UBO records, and may have periodic filing requirements. Non-compliance can attract penalties.