Setting Up an Offshore Company in Dubai: Complete Guide
A Dubai offshore company is a legal entity registered in the UAE that cannot conduct commercial activities within the local territory. It is used for asset holding, international trade, intellectual property management or shareholding structures. The two main UAE offshore jurisdictions are JAFZA Offshore (Jebel Ali) and RAK ICC (Ras Al Khaimah International Corporate Centre). Setup time: 3 to 5 business days. No physical office required.
What Is a UAE Offshore Company?
A UAE offshore company is a legal entity registered in a specific UAE jurisdiction (JAFZA or RAK ICC), designed for international operations.
- Cannot conduct commercial activities within the UAE local territory
- Cannot directly employ UAE-resident staff
- Does not automatically grant a residence visa
- Does not require a physical office or local commercial address
- Benefits from enhanced shareholder confidentiality
In exchange, it offers a legal, transparent and internationally recognised structure at significantly lower setup and maintenance costs than a Freezone or Mainland company.
The Two UAE Offshore Jurisdictions
JAFZA Offshore — Jebel Ali Free Zone Authority
The oldest and most recognised UAE offshore jurisdiction. Particularly suited for real estate holding (a JAFZA Offshore company can directly own Dubai property), international trading structures and asset management entities.
- Setup time: 5–7 days
- Minimum capital: none
- Shareholders: 1 minimum, individuals or corporates
- Unique advantage: can directly own Dubai real estate
- Cost: from AED 10,000–15,000/year (JAFZA fees + registered agent)
- Confidentiality: shareholder register not public
RAK ICC — Ras Al Khaimah International Corporate Centre
The most cost-effective UAE offshore jurisdiction, widely used for international trading structures, financial holdings and shareholding in foreign companies. Popular among international entrepreneurs for its simplicity and lower cost.
- Setup time: 3–5 days
- Minimum capital: none
- Shareholders: 1 minimum, individuals or corporates
- Cost: from AED 7,000–10,000/year (RAK ICC fees + registered agent)
- Structure types: International Business Company (IBC), Restricted Purpose Company, Protected Cell Company
- Ideal for: shareholding structures, international e-commerce, IP holding, trading
Advantages of a Dubai Offshore Company
- 0% tax on offshore income (excl. local UAE income)
- 100% foreign ownership — no local partner
- Full repatriation of profits, no restrictions
- No physical office required — lower operating costs
- Setup in 3 to 7 business days, fully remote
- Shareholder confidentiality (non-public register for RAK ICC)
- Access to international multi-currency bank account
- Structure recognised in most countries for B2B transactions
Use Cases for a Dubai Offshore Company
International shareholding structures:
a JAFZA or RAK ICC company can hold shares in companies located abroad, centralise dividends and reduce overall group tax burden, subject to Economic Substance Regulations (ESR) compliance
International trading
The offshore company purchases goods from a supplier in Country A and resells them to a buyer in Country B, without the goods physically passing through the UAE. The resulting trading profits are retained within the offshore structure.
Intellectual property holding
Patents, trademarks, copyrights and software can be held by an offshore company, which may receive royalty income from subsidiaries or business partners in other countries. This structure is widely used in the technology, media and pharmaceutical sectors.
Real estate holding (JAFZA only)
A JAFZA Offshore company can directly own real estate in Dubai, including apartments, villas and commercial properties. This structure is widely used by investors seeking to protect their real estate assets and facilitate estate planning and succession.
Asset and wealth protection
Assets held by an offshore company are legally separate from the shareholder's personal assets, providing protection against personal creditors while facilitating international estate and succession planning.
Dubai Offshore vs Free Zone vs Mainland: Which to Choose?
| Criterion | Offshore | Free Zone | Mainland |
|---|---|---|---|
| UAE local operations | No | Limited | Yes |
| Physical office required | No | Optional | Yes |
| Residence visa | No | Yes | Yes |
| 100% foreign ownership | Yes | Yes | Yes (since 2021) |
| UAE bank account | Possible (strict criteria) | Yes | Yes |
| Setup time | 3–7 days | 3–7 days | 5–10 days |
| Estimated annual cost | AED 7,000–15,000 | AED 12,000–25,000 | AED 15,000–30,000 |
| Best for | Holding, int'l trading, IP | Services, tech, e-commerce | Local trade, retail |
ESR Compliance and Substance Obligations
Since 2019, the UAE has applied Economic Substance Regulations (ESR) to comply with OECD standards. Offshore companies engaged in 'relevant activities' (holding, IP, finance, distribution) must demonstrate genuine economic substance in the UAE.
Non-compliance results in penalties (AED 50,000 to AED 400,000) and automatic information exchange with the tax authorities of the shareholders' country of residence.
The Setup Process: A to Z
Jurisdiction selection (JAFZA vs RAK ICC) based on your objectives
Company name selection and availability check
Dossier preparation: passport, proof of address, CV, simplified business plan
Submission to the relevant authority via our network of registered agents
Certificate of Incorporation issued (3 to 7 business days)
International bank account opening (2 to 6 weeks depending on bank)
ESR and CRS compliance setup
Our Offshore Setup Service
- Profile analysis: optimal jurisdiction selection based on your tax, asset and operational objectives
- Complete incorporation: dossier, submission, certificate of incorporation, articles and shareholder register
- Licensed registered agent: mandatory registered agent and registered office address provided
- Bank account opening: introductions to UAE and international banking partners, full KYC preparation
- ESR/CRS compliance: annual diagnostic and economic substance declarations
FAQ — Dubai Offshore Company
Yes, entirely. JAFZA and RAK ICC are jurisdictions officially recognised by the UAE federal government. Offshore companies are legal and used by thousands of international businesses. They must comply with ESR, CRS, and FATCA obligations.
An offshore company (JAFZA/RAK ICC) cannot trade within the UAE, requires no physical office, and does not grant a residence visa. A Free Zone company can trade internationally and within its zone, can lease office space, and its owner is eligible for a UAE residence visa.
Yes, though criteria are stricter than for Freezone or Mainland companies. Both JAFZA and RAK ICC offshore companies can open UAE accounts (Emirates NBD, RAKBank, Mashreq) subject to full KYC due diligence. International accounts are also accessible.
Yes, though banks apply stricter due diligence criteria for offshore companies than for Free Zone or Mainland companies. Many offshore company owners instead open accounts with international banks or in a third jurisdiction.
Offshore companies generating no UAE-source income generally fall outside the scope of UAE Corporate Tax, but this depends on your specific activities and level of economic substance — we recommend a case-by-case review with our tax advisors.
Yes. The entire process — from name reservation to receiving your Certificate of Incorporation — can be completed remotely, with no requirement to travel to the UAE.
Setup and annual maintenance costs range from approximately AED 7,000 to AED 15,000 per year, depending on the jurisdiction chosen (RAK ICC or JAFZA) and registered agent fees.
Set Up Your Dubai Offshore Company in 3 to 5 Days
JAFZA or RAK ICC, based on your objectives. We prepare your incorporation file, obtain your Certificate of Incorporation and manage your corporate bank account opening—all remotely.
English 
French