Besides mainland and free zone companies, entrepreneurs also have the option to set up offshore companies in the UAE. Offshore businesses are registered in the UAE while carrying on operations outside the country. They are limited liability companies, which means their finances are well protected.
An offshore company is typically used for international trading, shipping, patents, international consulting, owning real estate, registering copyrights, or as holding companies. Within the UAE, there are three main territories where most choose to form offshore companies. These are Ras Al Khaimah International Corporate Centre (RAK ICC), Jebel Ali Free Zone (JAFZA), and Ajman Free Zone (AFZ).
In 2023, the UAE implemented a corporate tax rate of 9%. However, offshore companies, as they are not eligible to operate their businesses within the country, are exempt from this tax.
Depending on your business needs, you may choose to set up an offshore
company from one of these three options:
JAFZA companies include logistics, electronics, automotive, food & agriculture, and e-commerce, among others. It attracts close to 25% of Dubai’s foreign direct investments and offers these benefits:
Unlike mainland and free zone companies which offer business licenses, offshore companies are given certifications to operate UAE-based firms instead. This is because an offshore company in the UAE is not technically allowed to operate within the country, so they do not get issued licenses.
Depending on your business needs or activities, here are the company types or activities for an offshore company:
The price for offshore company formation in the UAE depends on the chosen option.
This rate will also differ based on the business activities, number of shareholders, office space requirements, and other factors.
The cost of setting up an offshore company in JAFZA may differ, but the average fee is at around AED 18,000
Convert your transactions into easy and affordable monthly instalments with our selected range of banking partners. Spend a minimum of AED 1,000 on your credit card issued from any of our participating banks and repay in easy instalments over a period of 12 months.
*General terms and conditions from the banks will be applicable.
Creative Zone offers comprehensive guidance and support throughout the process, simplifying the intricate steps of establishing an offshore company in JAFZA.
The first step is to choose your offshore Jebel Ali Free Zone company activities and a name that fits your company and is neither offensive nor religiously or politically sensitive.
The Memorandum of Association (MOA) and Articles of Association (AOA) hold significant importance as they undergo thorough examination and verification by the authorities at JAFZA. It is essential to note that these documents must be presented in English.
Alongside the Memorandum of Association (MOA) and Articles of Association (AOA), prepare the needed documentation and submit these for license approval.
Once the above steps are completed, proceed to open a UAE bank account to smoothly initiate your corporate business transactions.