If you have a feeling of a strong business move and ultimate goal is Offshore company setup in Dubai is for international entrepreneurs, investors, and asset managers that wish to utilize Dubai into global connectivity, tax-efficient regime and business friendly environment.
What Is an Offshore Company in Dubai?
An offshore company is a legal business entity registered in the UAE but not permitted to conduct business inside the UAE market. Its operations are restricted to outside the UAE and are primarily used for:
- International trade
- Wealth management
- Holding assets (real estate, shares, IP)
- Tax optimization
- Investment structures
There are two major jurisdictions in the UAE that allow offshore company formation:
- Jebel Ali Free Zone (JAFZA Offshore) – Dubai-based, overseen by JAFZA Authority
- Ras Al Khaimah International Corporate Centre (RAK ICC) – Popular for low costs and quick setup
Why Consider Offshore Company Setup in Dubai?
Here are some compelling reasons why offshore company setup in Dubai is popular among global entrepreneurs:
- 100% foreign ownership
- No corporate or personal income taxes
- No requirement for physical office space
- Full repatriation of profits and capital
- High-level confidentiality and privacy
- Ease of international banking and investments
- Access to the UAE’s global business infrastructure
Step-by-Step Guide to Legally Register an Offshore Company in Dubai
1. Choose the Right Jurisdiction
Select between:
- JAFZA Offshore (Dubai): Ideal for those requiring real estate ownership in Dubai or wanting proximity to Dubai-based services.
- RAK ICC (Ras Al Khaimah): Cost-effective, fast incorporation, popular among international investors.
2. Decide on the Business Activity
Offshore companies in Dubai are typically used for:
- Trading (outside the UAE)
- Investment holding
- Ship or aircraft ownership
- Intellectual property holding
- Asset protection
You cannot conduct commercial activities within the UAE or hire staff locally under an offshore company setup in Dubai.
3. Prepare the Required Documents
You’ll need:
For individuals:
- Passport copies of shareholders and directors
- Proof of address (utility bill or bank statement)
- Bank reference letter
- CV or professional profile (for KYC)
For corporate shareholders:
- Certificate of Incorporation
- Memorandum & Articles of Association
- Board Resolution approving the offshore formation
- Certificate of Good Standing
All documents must be notarized and attested if issued outside the UAE.
4. Draft and Submit the Application
Your registered agent will help you prepare:
- Memorandum and Articles of Association
- Shareholder and director appointment forms
- Beneficial ownership declarations
- Business plan (if applicable)
These are submitted to the offshore authority (JAFZA or RAK ICC) for approval.
5. Obtain the Certificate of Incorporation
Once approved, you will receive:
- Certificate of Incorporation
- Memorandum & Articles of Association
- Share Certificate(s)
- Corporate documents (registers, resolutions)
The process typically takes 3 to 7 working days.
Key Differences Between, Free Zone, and Mainland Offshore Company Setup in Dubai
| Feature | Offshore Company | Free Zone Company | Mainland Company |
| Local UAE Operations | Not Allowed | Allowed in Free Zone | Fully Allowed |
| 100% Foreign Ownership | Yes | Yes | Yes (as of 2021) |
| Office Space Requirement | Not Required | Required | Required |
| Visa Eligibility | Not Eligible | Yes | Yes |
| Bank Account Access | Yes (with effort) | Yes | Yes |
Final Thoughts
Offshore company setup in Dubai is strategic choice for global entrepreneurs wishing to have an identity under privacy, asset protection and tax advantage. Although these entities are not in the UAE domestic market, they provide a secure place for international business activities and wealth management.
In an effort to make a legal follow through and a produce a hassle-free procedure, it’s highly recommended that you consult with an offshore setup consultant who has a license.