Offshore Zones and Advantages in Dubai

UAE Dubai Offshore Company Formation

Benefits of Registering a UAE Dubai Offshore Entity

1. Compared to other available business structures, setting up a UAE Dubai offshore entity is fast and straightforward because:
   • This type of entity can be registered within 2 weeks, allows for 100% foreign ownership, and the registration process does not require foreign shareholders or directors to travel to the UAE.
   • UAE Dubai offshore companies can hold a corporate bank account not only within the UAE but also internationally.
   • The corporate documents for Offshore UAE Dubai companies are bilingual (English and Arabic), which simplifies the process of opening corporate bank accounts with international banks.
   • UAE Dubai offshore companies can own shares in other UAE Dubai offshore or Free Zone Companies. They are also permitted to trade with other UAE Dubai offshore companies (though not with free zone entities).
2. Like other UAE entities, Dubai offshore setups are fiscally attractive because:
   • There is no corporate tax in the UAE, making Dubai offshore entities an ideal vehicle for trading with international clients.
   • A registered offshore company in Dubai projects a strong, credible image to clients, suppliers, and potential venture capitalists. The UAE is a globally recognized jurisdiction that does not carry the stigma of being a "tax haven."

Important Considerations Before Registering a UAE Dubai Company

UAE Dubai offshore entities are not permitted to:

• Trade with clients within the UAE.
• Lease or purchase local real estate (including office space).
• Employ local or foreign staff.

They are classified as non-resident entities and, furthermore, do not have access to the UAE's double taxation avoidance treaties.

UAE Dubai Offshore Company Comparison

Below is an overview of the 3 different offshore options available. We hope this information helps you decide on the best corporate structure to achieve your international business goals. For a direct comparison between Dubai, RAK, and Ajman offshore companies, you can also refer to the table available on our website.

Dubai Offshore Company (Jebel Ali Offshore Company)

• Dubai offshore companies are actually registered in the Jebel Ali Free Zone. Consequently, they are also known as Jebel Ali offshore companies.
• This type of entity requires:
  • A minimum of one shareholder with no capital requirement.
  • 2 directors.
  • 1 company secretary, who can also be one of the two directors.
• The registration of Dubai offshore companies is expensive, particularly due to the requirement to legalize the personal documents of shareholders and directors.
• Finally, these entities are subject to various business activity restrictions and cannot engage in activities related to:

• • Insurance
  • Filmmaking
  • Banking
  • Management
  • Financial
  • Gambling
  • Professional services
  • Casino operations
  • Consulting. This also includes property development, intellectual property, education, media, security, real estate, publishing, military, and advertising. The Jebel Ali Authority reserves the right to add more activities to this list and has the final authority to accept or reject a company registration.

Dubai RAK Offshore Company

• RAK offshore entities are registered with the RAK Investment Authority, which currently boasts a portfolio of over 2,000 registered offshore companies to date.
• A RAK offshore company can be i) 100% foreign-owned. It can be established within 2 weeks with just one director and one shareholder. Furthermore, there is no public register of directors or shareholders.
• RAK is an excellent and more affordable alternative to Dubai. Unlike Dubai, the registration of a RAK offshore company is not subject to restrictions on commercial activities or a legal requirement for the submission of legalized documents.

Dubai Ajman Offshore Company

• Ajman offshore entities, recently rebranded as Ajman "International Business Companies," are supervised by the Ajman Free Zone Authority.
• An Ajman IBC can be 100% foreign-owned, can be established in 2 weeks with only one director and one shareholder, and is not required to submit financial statements or audit its accounts.

Setting Up a UAE Dubai Offshore Company

How to set up an offshore company in Jebel Ali Free Zone (JAFZA)?

Opening a Dubai offshore business is a tax-efficient and cost-effective corporate structure, ideal for entrepreneurs looking to conduct international trade.

An offshore entity can also be referred to as a non-resident "paper" company, allowing foreign entrepreneurs to serve Africa and the Middle East without administrative burdens. Consequently, an offshore business is a wholly-owned LLC that is legally tax-exempt and has no annual accounting or tax obligations.

1. Offshore companies are ideal for international trade, serving as a holding company, shipping company, owning real estate, copyright and patent registration, and providing international consulting services.
2. Offshore Dubai company formation is governed by the Jebel Ali Free Zone Offshore Companies Regulations 2003.

Advantages of a Dubai Offshore Entity

1. Setting up an offshore company in Dubai is quick and simple, especially when compared to other business types in the UAE.
2. An offshore company in Dubai projects a good image to Clients, suppliers, and even potential venture capitalists. Dubai is a globally recognized jurisdiction that does not carry the stigma of a 'tax haven'.
3. If structured properly, a Dubai offshore business setup is legally exempt from corporate tax, making it an ideal international trading vehicle.
4. Shareholders and directors in an off-shore company will not be required to register their names and details on a public record.
5. An offshore company in Dubai is exempt from all annual accounting and tax obligations.
6. Compared to other tax-haven entities, an offshore business setup is an inexpensive and easy way to secure a corporate bank account in Dubai.
7. Dubai company documents are bilingual (English and Arabic), so they are recognized worldwide by banks, Governments, suppliers, and investors.

Disadvantages of a Dubai Offshore Entity

1. A Dubai offshore entity is not permitted to trade within Dubai and the UAE.
2. An offshore entity can neither rent local facilities in the UAE, nor employ staff in the UAE, nor obtain residence or work visas for staff.
3. Compared to other tax-haven entities, setting up an offshore company in Dubai can be expensive.
4. Dubai banks often provide poor customer service support.
5. The offshore business cannot use the UAE's double taxation treaties to reduce global withholding tax.
6. A Dubai offshore business cannot invest in UAE real estate.

Other Options for Dubai

Besides setting up an offshore company in Dubai, entrepreneurs have the following options for conducting their business in the Middle East:

1. A Dubai LLC,
2. A Dubai free zone company.

UAE Dubai Offshore Companies Comparison

There are three different options when registering an offshore company in the UAE: Jebel Ali in Dubai, Ajman, and Ras Al Khaimah (RAK).

Both Ajman and RAK offshore companies can be used for international trade, as holding companies, and as tools for estate planning and asset protection outside the UAE. Both are low-cost options for setting up an international business company compared to the costs of registering a Jebel Ali offshore company.

While the incorporation process for an Ajman offshore company, its timeframe, and registration requirements are much easier, our preferred option is often the RAK company, as its free trade zone is much more established and well-known to international entrepreneurs. Furthermore, an added advantage is that a RAK offshore company is also permitted to have a registered office in Dubai. See the table below for a detailed comparison.

Browse offshore company formation for other offshore jurisdictions.

What are the uses of a non-resident company in Dubai?

A Dubai offshore business allows Clients to engage in:

• International Trade
• Holding Company Activities
• Shipping Company Operations
• Real Estate Ownership
• Copyrights And Patent Registration
• International Consulting Services

How many directors are required to incorporate a Dubai IBC?

While only 1 director is required to set up a RAK offshore company, 2 directors will be necessary for a Jebel Ali offshore company.

How many shareholders are needed to establish an offshore company in Dubai?

A Dubai offshore business setup is required to have only 1 shareholder.

Is it mandatory to have a resident director or shareholder for a Dubai offshore formation?

Resident directors are not required for any offshore company in Dubai.

What Dubai offshore banking facilities will be available for my business?

Companies looking to do offshore banking in Dubai will have access to internet and telephone banking, checking and savings accounts, debit and credit cards, fixed deposits, and wealth management facilities.

Doing Business in Dubai Ras Al Khaimah in 2023

For over a decade, World Company Setup has been efficiently and effectively assisting our Clients with:

• Business registration
• Business licensing
• RAKEZ business banking solutions
• Accounting and tax strategies

Dubai Ras Al Khaimah Company Registration Summary

Advantages of RAKEZ Company Registration

• Setting up a company in Ras Al Khaimah Free Zone is simple and straightforward because:
  • To establish a company within the Ras Al Khaimah Economic Zone, a minimum of one shareholder and one director is required, who can be the same person.
  • There are no restrictions on the maximum number of shareholders, and corporate shareholders are permitted. Furthermore, there is no public register of shareholders or directors for RAKEZ companies.
  • Our clients do not need to travel to Ras Al Khaimah to sign company formation forms, and the incorporation process can be completed within 2 weeks.
  • The UAE has signed 94 double taxation agreements to eliminate double taxation and provide protection to taxpayers.
• Ras Al Khaimah is a strategic location to set up a business in the UAE because:
  • Located near the Strait of Hormuz and only 40 minutes from downtown Dubai, Ras Al Khaimah (“RAKEZ”) is a prime location providing access to over 2.2 billion consumers in the Middle East, Africa, and the rest of the world.
  • Ongoing negotiations to establish free trade agreements with countries like the US and Japan, potentially giving UAE companies, including those in RAKEZ, free access to markets of over 500 million people.
  • In the last few years, RAKEZ has achieved a remarkable average economic growth of 1.5% - 2%.
  • Due to its location at the mouth of the Persian Gulf, RAKEZ has immense logistical advantages, including an international airport managed by 5 seaports and Saqr Port, the most important bulk port in the Middle East.
• Setting up a company in the Ras Al Khaimah Economic Zone (RAKEZ) will be advantageous for our Clients because:
  • A Ras Al Khaimah Free Zone Authority (“RAKEZ”) company registration is an excellent alternative to a Dubai free zone company formation. Besides rapid incorporation, RAKEZ offers a wide range of office, storage facilities, and land for development.
  • If properly structured, a RAKEZ company is an ideal way to record international profits while legally not paying local corporate tax. Furthermore, there is no capital gains or personal income tax in RAKEZ.
  • RAKEZ allows investors to choose between a Free Zone Company, a local branch of an existing UAE company, and a foreign branch of an existing company.
  • A RAKEZ company can fully repatriate its capital and profits, and there are no exchange controls imposed by the RAKEZ Authorities.
  • Additionally, a branch company can be fully foreign-owned and is not subject to an annual audit.
  • A RAKEZ company can sponsor multiple UAE Dubai residence and work visas for investors, entrepreneurs, and employees. For more information, please visit our relocation and resettlement services page.
• Clients wishing to conduct international business can set up an offshore company at the RAKEZ International Corporate Centre:
  • A Ras Al Khaimah International Corporate Centre (“RAKEZ ICC”) company registration is an excellent alternative to a UAE Dubai offshore company formation.
  • Through a RAKEZ ICC offshore company, it is possible to have an entity and a business address without the legal requirement to rent a physical office and employ staff locally.
  • The RAKEZ ICC company is permitted to conduct most business activities. Furthermore, it allows for multiple activities such as trading, consulting, construction, real estate, marketing, travel and tourism, and others within the same company.
  • A company registered with RAKEZ ICC can own freehold properties and land in designated areas in Dubai. There are 23 property areas in Dubai, including Dubai Marina, Downtown Dubai, Jumeirah Village Circle, and Palm Jumeirah.
  • As of August 2021, a RAKEZ offshore ICC can do business on the RAKEZ "mainland" by registering a subsidiary on the RAKEZ "mainland" and securing UAE Dubai residence visas.

Disadvantages of RAKEZ Company Registration

• Effective from 1 January 2019, locally incorporated RAKEZ entities, foreign entities registered in RAKEZ, and limited partnerships engaged in holding company activities, banking business, distribution and service centre business, finance and leasing, fund management, headquarters business, insurance, intellectual property ownership, and shipping are required to employ local staff and rent a physical office. For more information on UAE economic substance requirements, click here.
• A limited liability company (LLC) requires UAE citizens to own at least a 51% stake.
• An offshore company cannot trade products or provide services within the UAE, nor can it lease local property or open a corporate bank account in the UAE.
• Most entities are required to submit annual audited accounts to the government.
• Transportation is a significant concern in and out of RAKEZ. There are no frequent public transport services in RAKEZ, and the main mode of transport is taxis. Furthermore, RAKEZ is connected to other emirates by private taxis and infrequent public bus facilities.
• All companies registered in the UAE must create and maintain a register of their ultimate beneficial owners (UBO) and submit UBO data to the relevant registrar or licensing authority.
• In 2020, the UAE introduced new regulations mandating that all UAE companies maintain and submit records of their Ultimate Beneficial Owners (UBOs) or Real Beneficiaries, shareholders, and directors. Fortunately, the information contained in the company registers is kept confidential by the authorities.

·         Best Uses of RAKEZ Company Registration

• RAKEZ offers an excellent corporate structure for clients seeking a legally tax-exempt structure to do business worldwide.

Doing Business in Dubai Ajman

Since 2003, World Company Setup has been efficiently and effectively assisting our Clients with i)

• Ajman business registration
• Business licensing
• Ajman business banking solutions
• Visa options
• Staff recruitment strategies
• Workspace rental solutions

 and more.

Dubai Ajman Company Registration Summary

How to renew a business license in Ajman Free Zone?

Click on the link headers below to read detailed, relevant, and up-to-date information.

Advantages of Dubai Ajman Company Registration

• Foreign investors benefit from lower setup costs compared to equivalent free zones elsewhere in the UAE. For example, the Ajman Free Zone Authority charges no business registration fees (though it does charge a license fee), making business registration a cost-effective solution for international entrepreneurs. Additionally, office and land rental rates in Ajman are lower than in free zones elsewhere in the UAE.
• Goods manufactured by companies holding a national industrial license with 51% GCC citizen ownership in Ajman are eligible for a "UAE Certificate of Origin" from the UAE Ministry of Economy and Commerce, earning these companies customs duty exemption in GCC member countries, provided the value added in Ajman FZ is at least 40% of the total final value of the respective product.
• Companies in Ajman FZ enjoy low energy costs. Consequently, Ajman is popular for energy-intensive businesses like manufacturing. International entrepreneurs who choose to set up a manufacturing business in Ajman receive an industrial license. World Company Setup Consultants will arrange all necessary licenses without our Client needing to travel.
• A company located in Ajman has 100% legal exemption from all import and export taxes.
• Foreign investors obtain a 20-year land lease, which can be renewed for another 20 years, thus guaranteeing 40 years of legitimate tax-free operations.
• 100% foreign ownership is permitted. A minimum of one shareholder is required for a free zone establishment (FZE). Furthermore, there are no restrictions on the repatriation of capital or profits from any entity in Ajman to the UAE.
• Registering an Ajman business is easier and cheaper than incorporating a normal LLC. For example, a 'hot desk' facility can be set up in an office, a fully equipped space with a desk, internet connection, etc., which can be rented on an hourly or daily basis depending on availability. This shared facility eliminates the cost of a fixed office lease and is particularly attractive for new start-ups.
• International entrepreneurs can obtain one of 4 different license types for their Ajman businesses:
  • Trade license
  • Industrial license
  • Professional services license, and
  • National industrial license. A trade license is issued to foreign/UAE companies/free zone commercial entities wishing to operate in Ajman.
    • As part of the UAE, a reputable international trade jurisdiction, an Ajman business is not perceived as an offshore company in an international tax haven. The UAE is the 23rd least corrupt country in the 2018 Corruption Perception Index prepared by Transparency International, a global measure of corruption among public officials and politicians.
    • World Company Setup Consultants can open a global corporate bank account to support the Ajman company. World Company Setup Consultants work with internationally recognized banks such as HSBC, Standard Chartered, and Citibank to provide corporate bank account services.
    • Following business registration, our Clients receive UAE residence and work visas.
    • The repatriation of capital and profits is very easy as there are no taxes on personal and corporate income.
    • The economy's unemployment rate is as low as 2.46% of the workforce, making Ajman a preferred destination for workers from all over the world.
    • The Ajman Free Zone Authority offers the Pioneer License, an affordable business license aimed specifically at supporting young entrepreneurs, freelancers, and investors aged between 20 and 30.
    • The benefits of the Pioneer License include:
  • 100% foreign ownership
  • 100% repatriation of profits
  • For investors and their families,
  • UAE residence visa.
    • The Ajman Free Zone Authority has simplified business setup with online registration and WhatsApp, email, and live chat functionalities.
    • Ajman is an iconic UAE destination for establishing industrial businesses. The Ajman Free Zone Authority offers special low energy tariffs for companies engaged in industrial and manufacturing activities.

Disadvantages of Ajman Company Registration

• Effective from 1 January 2019, local companies based in Ajman, foreign entities registered in Ajman, and
• Limited partnerships engaged in:
  • Holding company activities
  • Banking business
  • Distribution and service center business
  • Finance and leasing
  • Fund management
  • Headquarters business
  • Insurance
  • Intellectual property ownership
  • Shipping
  are subject to UAE economic substance requirements to employ local staff and rent a physical office.
• All companies registered in the UAE must create and maintain a register of their ultimate beneficial owners (UBO) and submit UBO data to the relevant registrar or licensing authority.
• Ajman has a high minimum capital requirement of DHS 183,500 (US$50,000) to be paid at the time of incorporation.
• Ajman business registration is slow, and it can take up to five weeks to obtain the business registration certificate and business license.
• A free zone company (FZC) requires at least two shareholders, who can be of any nationality and do not need to reside in Ajman or the UAE.
• Ajman is a small emirate that lacks the global image and reputation of Dubai. Consequently, Ajman is not a good solution for international entrepreneurs who value corporate image.
• While Ajman is strategically located near major communication and transport links, there is only a limited number of quality accommodation, services, and schools for foreign staff in Ajman. Most expatriate managers prefer to live in Dubai or Sharjah, with commute times from Dubai reaching up to an hour during peak hours.
• Being less developed, Ajman is undergoing construction work and public utility development, which disrupts the operations of some companies. Furthermore, being underdeveloped, Ajman is not yet an established community of businesses requiring services.
• Ajman's GDP per capita in PPP terms is US$68,895, which is one of the highest in the world, far above many developed countries except Norway and Luxembourg. This means that wages for workers in Ajman will be relatively higher.
• In October 2018, the UAE Central Bank devalued Ajman offshore companies, and as a result, it has become extremely difficult to secure UAE corporate bank accounts for this type of entity in a timely manner.
• Alternatively, our Clients may consider registering their UAE offshore companies in Jebel Ali Free Zone (JAFZA) or as a RAK ICC.
• The owners of an Ajman offshore company are not entitled to obtain a UAE residence visa. If our client requires a UAE residence visa, we recommend registering a Free Zone company instead.
• Unfortunately, there are limited international and local corporate banking options for an Ajman company. World Company Setup will apply to tier-3 banks to maximize the probability of corporate bank account approval. Alternatively, we recommend our Client register a company in an alternative zero-tax jurisdiction with a better international reputation.
• Ajman Free Zone companies have a high minimum capital requirement of US$50,000 (AED 183,500) to be paid at the time of incorporation.
• The representatives of the Ajman Free Zone Authority are slow and often unresponsive. The process of obtaining a business registration certificate and operating license can take up to six weeks.

Best Uses for a Dubai Ajman Company

Bridging East and West

Strategically located at the entrance of the Persian Gulf, Ajman is well-positioned to serve eastern and western markets. Ajman's proximity to Sharjah and Dubai provides easy access to two international airports and four ports.

Tax-Exempt in the Middle East

If properly structured, an Ajman FZ business is an excellent way to legally record international profits without paying local corporate tax. No corporate tax or personal income tax is levied. Furthermore, an Ajman business is not required to prepare annual financial statements or tax returns for any authority, which simplifies the administration of the Ajman company.

Do I need to visit Ajman for business registration?

No. World Company Setup Consultants do not require our Clients to travel to Ajman to register a company.

Does an Ajman offshore company entitle me and my family members to obtain a UAE residence visa?

No.

Government And Public Authority Websites

• Central Bank of the UAE
• Dubai hotels
• UAE Foreign Exchange Trading
• UAE newspaper

Doing Business in Dubai Ras Al Khaimah

For over a decade, World Company Setup has been efficiently and effectively assisting our Clients with: business registration, business licensing, RAKEZ business banking solutions, accounting, and tax strategies.