The United Arab Emirates is renowned for its stable economy and business-friendly environment. Its strategic location and proximity to various major markets make it an ideal destination. Globalization has further popularized offshore company formation in the UAE for business growth.
For entrepreneurs looking to build their business or set up a holding company, an offshore business setup in the UAE can be an ideal route. At Business Setup Worldwide, we help you structure your firm from scratch. Our local expertise, combined with strong regulatory knowledge, provides sound guidance to steer your business toward growth.
What is a UAE Offshore Company?
A UAE offshore company is a registered entity that cannot conduct business within the UAE. Though registered under a Free Zone Authority, it is not a free zone company. It can effortlessly carry out commercial activities across the globe, act as a holding company for assets, and even be a parent company for UAE mainland and free zone subsidiaries.
Benefits of Offshore Company Formation in the UAE
For non-residents, offshore company formation in the UAE offers numerous advantages, including a solid foundation for business growth. Here’s a quick overview:
Tax Exemptions
Under the UAE Corporate Tax law, an offshore company’s tax residency depends on where it is managed and controlled. If it is managed from within the UAE, it may be deemed a local tax resident. Like other UAE corporate entities, a tax-resident offshore firm is subject to a 9% corporate tax on its taxable income. However, they can benefit from specific relief thresholds i.e. a 0% tax rate applicable to net profits up to AED 375,000. They can also elect for ‘Small Business Relief’ if their gross revenue remains below AED 3 million.
Hassle-Free Administration
The requirements for offshore company registration in the UAE are straightforward. There are no physical office space or minimum share capital requirements, among others. This ensures business administration is quick and efficient.
Ease of Business Setup
Offshore company registration in the UAE is streamlined, and a firm can be set up remotely, without requiring physical presence or a visit to the jurisdiction.
Access to Offshore Banking
You can access international banking via an offshore business setup in the UAE. Through the registered firm, you can open an offshore bank account and transact in different currencies seamlessly.
Access to offshore banking
You can access international banking via an offshore business setup in the UAE. Through the registered firm, you can open an offshore bank account and transact in different currencies seamlessly.
Strategic Location
The UAE is known for its strategic location. It is situated in close proximity to various economies, including those of Europe, the Middle East, Asia, and Africa, which facilitates trade. Aside from this, it has treaties with approximately 100 countries, providing swift access to international trade.
Jurisdiction for Offshore Company Setup in the UAE
Though a UAE offshore company is registered with the Free Zone Authority, it is not a free zone company. You can begin offshore company formation in the UAE in any of the following:
1. RAK International Corporate Center (RAK ICC)
The features of the RAK offshore company are covered under the RAK ICC Business Company Regulations:
An RAK ICC offshore company cannot provide financial services as a business.
Directors, agents, or a liquidator are not personally liable to repay the debts of the UAE offshore company, except in the case of their own misconduct and fraud.
There is no local shareholding requirement.
It can act as a holding company and hold shares in the mainland and free zone UAE entities.
It can hold properties in the designated freehold areas after obtaining a no-objection certificate.
2. Jebel Ali Or JAFZA
JAFZA offshore company is one of the most preferred structures for offshore company formation in the UAE. Here are the key features of an offshore company in JAFZA:
The name of the company must end with ‘Limited’.
The firm must have a registered office address.
The firm can own properties in one of the designated freehold areas in the UAE.
The company can open an account in a bank in the UAE.
The firm can own a stake in another operating company within the UAE.
The firm can hold a lease of property for use as a registered office in the designated freehold areas.
3. Ajman
Ajman offshore company has numerous defining features that make it a sought-after choice:
There is no requirement for office space or local operations.
The setup and annual renewal costs are low.
It can invest in real estate or income-generating assets.
It cannot trade directly within the UAE Market.
It is ideal for investment, trading, and ring-fenced projects.
Offshore Company Formation in the UAE: Permitted & Non-permitted Activities
An offshore company set up in the UAE does not allow you to access the mainland UAE market. The following is the list of activities segregated for offshore company formation in the UAE:
S. No
Permitted Activities
Non-Permitted Activities
1
International Trade (Outside the UAE)
Insurance business (Requires Central Bank License)
How to Begin Offshore Company Formation in the UAE?
Offshore company incorporation in the UAE is straightforward with Business Setup Worldwide. You can register your company in the UAE with our help in a few simple steps:
Step 1: Reach Out to Us
Get in touch with us via chatbot, email, or WhatsApp, and we will assign a dedicated agent who will guide you through the process.
Step 2: Submit Your Documents
Compile and submit the following documents for offshore company incorporation in the UAE:
Identity proof of the shareholders and directors
CV of the shareholders and directors
Well-drafted business plan
Bank reference letter
Ultimate Beneficial Owner (UBO) Declaration
We handle all the necessary incorporation formalities on your behalf.
Step 3: Avail Additional Services
In addition to the company formation services, you can opt for additional services such as opening an offshore bank account to meet your business requirements.
Step 4: Receive the Company Kit
Once your offshore business setup in the UAE is done, we will email the company kit, which includes all the necessary documents, to you.
Why Choose BSW?
Offshore company formation in the UAE is a straightforward process, and we, at BSW, make it easier for you. BSW has over 8 years of experience providing offshore company formation services in over 30 jurisdictions. Our legal experts are well-versed in local requirements and ensure your company remains compliant. Contact us now to expand your business globally with BSW!
Frequently Asked Questions
1. Can a UAE offshore company have a physical office or employees in the UAE?
No, offshore companies are not allowed to lease office space or hire employees within the UAE, as they are designed for business activities outside the country.
2. Is it possible to open a UAE bank account for an offshore company remotely?
In many cases, banks require the shareholder or director to be physically present for KYC, although some jurisdictions and banks may allow partial remote processing.
3. Can I use a UAE offshore company to own property in Dubai?
Yes, certain offshore jurisdictions like JAFZA allow property ownership in designated areas, but it depends on the developer and land department approvals.
4. What level of substance is required for a UAE offshore company?
Offshore companies typically have minimal substance requirements, but economic substance regulations may still apply depending on the business activity.
5. Can an offshore company be redomiciled into or out of the UAE?
Some UAE offshore jurisdictions allow redomiciliation, but it depends on both the original and target jurisdiction laws and registrar approval.
