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Dubai has become a prime destination for offshore company formation, offering global investors tax efficiency, strict privacy laws, and seamless international connectivity. Since launching its offshore company framework in 2003, Dubai has attracted businesses looking to expand internationally, protect assets, and maximize tax benefits.

What is Dubai Offshore Company?

A Dubai Offshore Company allows 100% foreign ownership, tax exemptions, and enhanced privacy for global operations, asset holding, and tax planning without conducting business within the UAE.

The United Arab Emirates offers multiple jurisdictions for offshore company formation, each with unique benefits and regulations. Here are the primary options available for establishing an offshore company in the UAE:

JAFZA Offshore

Established in 2003, JAFZA offers comprehensive corporate facilities and infrastructure. It supports a wide range of business operations and is the only UAE offshore location permitting property ownership in Dubai. JAFZA is popular for its robust regulatory framework and strategic benefits.

Ajman Offshore

AFZ is recognized for its affordability and fast setup process. Ajman offshore offers privacy, tax efficiency, and is ideal for smaller businesses in Dubai and startups. AFZ provides a straightforward incorporation process, making it a popular choice for new businesses.

RAK Offshore

RAK offshore jurisdiction stands out for its cost-effective and efficient incorporation process, free from corporate taxes. Known for ensuring high confidentiality, RAK ICC enables companies to hold shares in UAE and international firms and even own real estate in the UAE under specific conditions.

Step-by-Step Process for Offshore Company Registration In Dubai

Here’s a detailed step-by-step guide to setting up an offshore company:

Determine Suitability

Engage with a company formation specialist or consultant to discuss your business objectives, understand the benefits, and assess if an offshore company formation aligns with your business needs.

Choose a Jurisdiction

Choose a Free Zone based on your business requirements. JAFZA Offshore Company a popular choice for offshore companies due to its reputation and the facilities it offers.

Name Approval

Propose a company name and get it approved by the relevant authority. The name should not violate public morals or the public order and must be followed by “Limited” to indicate limited liability company.

Prepare the Required Documents

Prepare the necessary documents, including:

- Detailed application form
- Business plan
- Passport copies of the shareholders and directors
- Original bank reference letters for each shareholder
- Proof of address for each shareholder (recent utility bill)
- Curriculum Vitae of each shareholder and director

Legal Documentation

Prepare and sign the Memorandum and Articles of Association of the company, which outline the company’s structure and the rules governing the conduct of the company. These documents must be tailored to meet selected Free Zone legal requirements.

Application Submission

Submit the completed application along with all required documents to your chosen Free Zone administration. Pay the necessary government fees and charges for registration and incorporation.

Compliance and Due Diligence

The Free Zone authority will conduct due diligence checks on the company documents and the background of the shareholders and directors.

Company Registration

Once due diligence is completed, the relevant authority will issue a certificate of Offshore Company Incorporation in Dubai and your company will be officially registered.

Open a Corporate Bank Account

Open your bank account in Dubai. Most banks will require the presence of company directors and beneficial owners to open a bank account. The bank will perform its own due diligence and KYC procedures.

Annual Obligations

Familiarize yourself with the annual compliance requirements, such as renewing the company’s registration and other operational licenses if necessary. Note that offshore companies in JAFZA are not required to submit annual audit reports but must maintain financial records.

Benefits Of Offshore Company Setup In Dubai

Tax Efficiency

Offshore companies in Dubai are exempt from corporate and personal income taxes, allowing businesses to maximize profitability and manage capital more effectively.

100% Foreign Ownership

Foreign investors can fully own their offshore companies without the need for a local partner, providing complete control over operations and management of business in the UAE.

Enhanced Privacy and Confidentiality

Shareholder and director information is not publicly disclosed, ensuring high levels of confidentiality and protecting the privacy of investors.

Advanced Infrastructure

Businesses in Free Zones have access to modern facilities and advanced technology. This includes high-speed internet and efficient logistics systems, supporting fast-paced business needs.

Strategic Global Location

Dubai’s strategic position between East and West provides excellent connectivity to major global markets, supported by world-class infrastructure for international trade and commerce.

Simplified Reporting Requirements

Offshore companies benefit from minimal reporting and regulatory requirements, reducing the administrative burden and allowing businesses to focus on growth.

Access to Robust Banking Services

Dubai’s sophisticated banking sector offers multi-currency accounts and comprehensive financial services that support global transactions and investment activities.

Real Estate Ownership

Certain FZs, like JAFZA, allow offshore companies to own property in Dubai, providing opportunities for asset diversification and investment in the dynamic real estate market.

Offshore Company Formation Packages

At RIZ & MONA CONSULTANCY, we provide affordable packages for offshore company formation in Dubai, Jebel Ali, Ajman, and RAKEZ, along with assistance in opening offshore bank accounts. Prices start from AED 11,000 for Ajman and RAK Free Zone, while JAFZA offshore companies are approximately AED 20,000.

Ajman offshore (AFZA)

Price Starting from AED 11,000

RAKEZ Offshore

Price Starting from AED 11,999

JAFZA Freezone

Price Starting from AED 20,000

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Offshore Companies Vs Free Zone Companies

Offshore company formation in the UAE offers businesses a range of benefits, but choosing between an offshore company and a Free Zone (FZ) company can depend on specific needs and preferences.

Aspect	Offshore Companies	Free Zone Companies
Jurisdiction	RAK, Ajman, and Dubai (JAFZA)	Operate within a number of free zones
Business Activities	Cannot conduct business within the UAE	Conduct business within Free Zones and internationally
Real Estate Ownership	Can own real estate in designated areas like JAFZA	Can lease or own properties within their respective FZs
Regulatory Requirements	Fewer compliance requirements; no mandatory annual audits	Stricter compliance; mandatory annual audits and financial disclosures
Residency and Visa Eligibility	Do not provide UAE residency visas for shareholders or employees	Offer residency visas for shareholders, employees, and dependents

Offshore Company Formation Consultants in Dubai

How Riz & Mona Consultancy Can Help?

Riz & Mona Consultancy is renowned as one of the top business setup consultants in Dubai, with over 15 years of experience facilitating a wide range of businesses throughout the UAE. Our deep connections with government officials and key authorities, combined with our extensive expertise in consultancy, streamline the process of establishing your business in Dubai. Additionally, we offer comprehensive financial, legal, and corporate services to support our clients throughout their business endeavors.

We are here to provide comprehensive support for your Offshore Company Formation, from preparing your documents to completing the process. Connect with us now to begin your journey with a FREE consultation!

FAQS

What types of business structures are eligible for offshore company formation?

Eligible structures for offshore companies include:

Limited Liability Companies (LLCs)
Limited Companies
Limited Partnerships

What is the financial requirement for establishing an offshore company in Dubai and the UAE?

The cost of setting up an offshore company varies. Generally, it requires a significant investment, starting from over AED 1000, depending on the type and size of the business.

Is there a mandatory minimum capital investment for offshore companies in the Emirates?

No, following the 2009 Companies Law update, offshore companies in the Emirates can set their own share capital requirements without a mandatory minimum.

Does an offshore company differ from a FZ company?

Yes, offshore companies are registered for operations outside the UAE and enjoy specific tax and privacy benefits without conducting local business. FZ companies are licensed to operate within UAE FZs and engage in local commerce.

What are the potential drawbacks of forming an offshore company in Dubai?

Potential drawbacks include:

Restrictions on local operations.
High setup and licensing costs.
Reduced privacy due to increased transparency.
Limited banking services due to strict regulations.
No automatic residency rights for owners or employees.

Is the UAE considered a tax haven?

The UAE is not typically considered a tax haven due to its compliance with international tax standards, though some FZs offer tax benefits similar to those found in tax havens.

Is it possible to be a shareholder in multiple Offshore Companies in Dubai?

Yes, you can be a shareholder of more than one offshore company in Dubai. Moreover, an offshore company can also be a shareholder in Dubai OC.

Is it possible to be Director and shareholder at the same time in Dubai OC?

Yes, it is possible to be a Director and even Secretary and shareholder at the same time.

Can offshore companies acquire property in Dubai?

Yes, offshore companies can own property in Dubai, but specific rules apply based on the registration jurisdiction. Legal consultation is recommended.

Offshore Company Formation in Dubai