All About Offshore Company Formation In Dubai, UAE

An offshore company can be established outside of the UAE mainland and free zone jurisdictions. You could register an offshore company either in RAK Offshore, officially called the Ras Al Khaimah International Corporate Centre or RAK ICC, which now represents the Company Registry holding details of the offshore companies, or abroad. 

 An offshore company is a legal business set up to operate, predominantly outside its registered jurisdiction or place of ownership. In most cases, an offshore company is not required to have physical office space but is instead prohibited from extensively engaging in any business activity within the country of incorporation.

This means offshore companies may be formed and owned by individuals or institutions, and that shares can easily and freely be transferred by a written instrument.

One rapidly growing sector in Dubai is the development of offshore companies. These entities are typically structured to minimize or eliminate taxes on property sales, capital gains, value-added tax, inheritance tax, and business profits.

Other preferred reasons for offshore company registration in Dubai include the ability to create or maintain wealth, hold or protect property and other assets, offer international trading, contract, and consulting services from one location, etc.

The benefits of setting up an offshore company in Dubai lie in the way Dubai provides complete confidentiality as far as ownership and related financial affairs are concerned.

Advantages of Offshore Company Registration in Dubai in Terms of Structure

Contrasted with most jurisdictions, the UAE has a highly regulated banking system, sophisticated infrastructure, a thriving startup ecosystem, state-of-the-art telecommunication networks, and easy access to international markets.

The formation of an offshore company in the UAE gives way to several business advantages:

  • A stable and business-friendly legal system
  • Flexible regulatory regime
  • Tax neutrality
  • Separation and protection of assets
  • Gateway to international markets
  • Access to global funding

Offshore company incorporation is relatively easy, quick, and simplified. This is often completed in a matter of days.

Benefits of Offshore Company Registration in Dubai

While most other jurisdictions are only considered regarding taxation, the formation of an offshore company in UAE provides great advantages: direct investment into specified jurisdictions, enhanced management of taxes on foreign income, full ownership of intellectual property, separation and protection of personal assets from operating entities.

An offshore company formation in the UAE can be specifically structured to minimize the overall international tax burden. There are no minimum capital share requirements, although from time to time, some government registrars may request that paid-up capital be proportionate to anticipated activities.

Another concentrated advantage is related to real-estate. A villa, office, or apartment purchased in the United Arab Emirates may be purchased by up to four owners, according to certain real estate developers.  With ownership registered to the offshore business, the number of such property owners can be increased in the case of an offshore company to up to 50. 

Selecting a Jurisdiction for Dubai Offshore Company Registration

List of Top Offshore Company registrars in UAE:

  • RAK International Corporate Centre (RAK ICC)
  • Jebel Ali Free Zone Authority (JAFZA)

Both allow 100% foreign ownership and are tax-free, with no income tax or corporate tax. Over 110 countries and the UAE have negotiated Avoidance of Double Taxation Treaty Agreements.

Both destinations also have special unique offerings: RAK ICC is hailed as the cheapest and fastest way to set up an offshore company in the UAE, with incorporation often completed in a few days. Among the most established offshore jurisdictions in the Middle East, RAK offshore boasts an impressive roster of over 14,000 companies in 50 sectors. On the other hand, JAFZA & RAK ICC offshore companies constitute the only offshore vehicles that are allowed to own property in the emirate of Dubai. 

All offshore companies in the UAE can open multi-currency accounts in the country and carry out business internationally.

Connect with GFLO Consultancy Registration Experts to know more about Offshore Company setup today itself!