In Dubai, offshore companies are permitted to establish bank accounts within the UAE, but they are restricted from obtaining work visas or establishing physical offices within the country. These offshore licenses are commonly utilized as holding corporations, primarily aimed at conducting operations in foreign jurisdictions to leverage financial, legal, and tax benefits. Dubai specifically allows offshore companies operating within free zones, like JAFZA and RAKICC, to engage in real estate transactions.
As distinguished agents for Dubai offshore company formation, GAAP Associates provides exceptional services for setting up offshore entities. Our comprehensive offerings cover everything from corporate and business documentation to bank account setup and license application procedures. Throughout the process, we liaise with relevant authorities on behalf of our clients to ensure the smooth establishment and management of their offshore companies in the United Arab Emirates.
An offshore company in Dubai is a corporate structure generally used for activities such as international business, holding investments, owning eligible assets and structuring cross-border transactions. Unlike a mainland company, an offshore company is not intended to operate a regular business from a physical office in the UAE.
Dubai offshore structures are available through jurisdictions such as JAFZA, while RAK ICC provides another UAE jurisdiction for international corporate structures. The permitted activities, ownership requirements, registered office requirements and compliance obligations depend on the relevant jurisdiction
An offshore structure may be considered by:
The suitability of an offshore company depends on the nature of the business, intended activities, ownership structure and the countries involved in the transactions.
An offshore company can be structured for several legitimate business purposes, subject to the rules of the selected jurisdiction. Common uses include:
An offshore company may be used to support international commercial activities where the business does not require a UAE mainland operating presence.
Businesses and investors may use an offshore entity to hold shares, investments or other permitted assets.
Certain UAE offshore jurisdictions permit companies to own property in designated areas, subject to the applicable regulations and approvals. JAFZA, for example, provides specific provisions concerning offshore company ownership of property in designated freehold areas.
An offshore structure may also be considered for holding intellectual property such as copyrights and patents where permitted.
Offshore company formation can involve lower initial costs compared with establishing a conventional business structure in the UAE. The overall cost depends on the selected jurisdiction, registration requirements, agent fees and additional services required.
The incorporation process can be completed within a relatively short period when the required documents are complete and meet the jurisdiction's requirements. Processing time may vary depending on the authority and the complexity of the application.
Offshore companies can generally be established with foreign ownership, subject to the applicable regulations of the selected jurisdiction. However, tax treatment should not be described as automatically tax-free, as Corporate Tax obligations depend on the company's activities and circumstances.
Certain UAE offshore jurisdictions may not require a minimum paid-up share capital. Audit and financial reporting requirements also depend on the applicable offshore regulations and the company's circumstances, so these requirements should be confirmed for the selected jurisdiction.
An offshore company may be able to maintain corporate bank accounts with one or more banks, subject to each bank's eligibility criteria, due diligence procedures and approval. The availability of multiple accounts depends on the company's structure, activities and banking requirements.
The exact process varies according to the chosen jurisdiction, but offshore company formation generally involves:
Define whether the company will be used for international trading, holding investments, asset ownership or another permitted purpose.
Select a suitable jurisdiction such as JAFZA Offshore based on the intended activities and corporate requirements.
JAFZA offshore companies are registered through approved registered agents.
Submit shareholder, director, corporate and beneficial ownership documents as applicable.
The relevant authority or registered agent may request additional information to verify the identity, ownership and intended business activities.
The application and supporting documents are submitted to the relevant authority.
Once approved, the company receives its incorporation documents and can proceed with applicable post-incorporation requirements.
Where eligible, the company can apply for a corporate bank account. Bank approval remains subject to the bank's own due diligence and requirements.
Documents Needed for Offshore Company Formation
Individual Shareholders
The total cost of offshore company formation depends on factors such as:
For example, JAFZA currently lists an AED 10,000 incorporation fee and AED 2,500 annual renewal fee for its offshore companies, excluding other applicable costs.
GAAP should avoid the current “100% tax-free” claim. UAE tax treatment depends on the company's circumstances and applicable legislation. The Federal Tax Authority has specific rules for Corporate Tax and Free Zone Persons, so tax treatment should be assessed rather than presented as an automatic exemption.
GAAP Associates assists businesses and investors with offshore company formation in the UAE by providing support throughout the administrative and documentation process. Our services include offshore jurisdiction guidance, company name and activity assistance, documentation preparation, KYC and UBO documentation support, incorporation application assistance, registered agent coordination, corporate bank account assistance and post-incorporation documentation support. Our team helps coordinate the formation process while ensuring that the proposed structure is aligned with the applicable requirements of the selected jurisdiction.
