How to Set Up an Offshore Company in the UAE

UAE offshore companies are designed for international businesses that want a tax-efficient structure without conducting operations within the UAE itself. They are commonly used for asset protection, intellectual property holding, international invoicing, and wealth structuring.

What Is an Offshore Company?

An offshore company is a UAE-incorporated entity that is permitted to conduct business internationally but cannot operate within the UAE mainland. It can hold bank accounts in the UAE, own property (in certain designated areas), and enter into contracts with international parties.

The two main offshore jurisdictions in the UAE are JAFZA Offshore (Jebel Ali) and RAK ICC (Ras Al Khaimah International Corporate Centre).

Key Benefits

Offshore companies offer 100% foreign ownership, no corporate tax on international income, strong privacy protections, the ability to hold UAE bank accounts and own UAE property, and a reputable jurisdiction that is recognised internationally.

What Offshore Companies Cannot Do

Offshore entities cannot trade within the UAE, rent office space on the mainland, sponsor employee visas (in most cases), or invoice UAE-based clients. They are not a substitute for a free zone or mainland operating licence.

Where to Set Up

JAFZA Offshore is the more established option, backed by the JAFZA brand and Jebel Ali Port ecosystem. RAK ICC is typically more cost-effective and faster to incorporate, with a streamlined process that appeals to international holding structures.

The Setup Process

Offshore company registration is fast — typically one to three business days for the incorporation. Banking takes two to six weeks. No visas or premises are required. Total: two to six weeks to be fully operational.

What It Costs

JAFZA Offshore incorporation costs approximately AED 20,000 to AED 30,000 for the first year. RAK ICC starts from approximately AED 10,000 to AED 15,000. Annual renewal costs are similar.