How to Set Up an Offshore Company in the UAE

An offshore company in the UAE is a business entity registered in the UAE for international business activities, holding assets, and global tax planning. 

The UAE is a global hub for international business, thanks to its political stability, strategic location bridging East and West, and robust legal framework. Offshore structures here are designed to be simple, cost-efficient, and globally recognised.

Offshore companies offer 100% foreign ownership, exemption from local corporate tax on international income, confidential ownership, and no physical office requirement, providing flexibility and cost efficiency.

100% Foreign Ownership

You retain full control over business decisions and profits, without needing a local partner or sponsor.

Zero Corporate & Personal Tax

Offshore entities in the UAE are not subject to corporate, capital gains, or income tax when their activities are conducted outside the UAE.

Privacy and Confidentiality

Ownership details are not publicly accessible, offering discretion and protection for shareholders.

No Office Space Required

Unlike free zone or onshore companies, offshore setups do not require a physical office, saving costs and providing flexibility.

Asset Protection

Offshore companies are often used to hold assets such as intellectual property, investments, or real estate (in certain zones) with legal safeguards.

International Banking Access

Corporate accounts can be opened with UAE or international banks, allowing efficient management of multi-currency operations.

While offshore companies offer many benefits, it is important to understand the limitations:

• No Local UAE Trade — Offshore companies cannot sell products or services directly within the UAE market.

• No Residency Visas — These companies typically do not grant UAE residency visas to owners or employees.
  

• Sector Restrictions — Offshore entities are suited for holding, investment, international trading, or consultancy. They cannot operate retail businesses in the UAE.
  

1. Choose Your Jurisdiction — Decide between RAK ICC, JAFZA Offshore, or Ajman Offshore based on your goals.
   
   

2. Appoint a Registered Agent — A UAE-based agent is required to handle filings and represent your company.
   
   

3. Reserve Your Company Name — Must comply with UAE naming conventions and end with “Ltd” or similar.
   
   

4. Submit Incorporation Documents — Typical requirements include Articles of Association, shareholder passports, and proof of address.
   
   

5. Open a Corporate Bank Account — Access UAE or international banking after registration.
   
   

1. What is an offshore company?
   A business entity registered in the UAE for international activities outside the country.
   

2. Can offshore companies do business inside the UAE?
   No — they are structured solely for foreign operations.
   

3. Do offshore companies pay taxes in the UAE?
   They are generally exempt when operating outside the UAE and meeting compliance requirements.
   

4. Can offshore companies sponsor UAE residence visas?
   Typically no, unlike free zone or mainland companies.
   

5. Do I need a UAE partner?
   No — offshore companies allow 100% foreign ownership.
   

6. Is a physical office required?
   No physical office is mandatory.
   

7. Are audits required?
   Usually not, but some jurisdictions may require compliance documentation.
   

8. How long does setup take?
   Most offshore companies can be established in a few days to a couple of weeks.
   

9. Can I hold assets with an offshore company?
   Yes — many investors use offshore companies for asset protection and management.
   

10. Can offshore companies open UAE bank accounts?
    Yes, though banks may require additional documentation.
    

11. Are there ongoing fees?
    Yes — annual renewal and registered agent fees apply.
    

Setting up an offshore company in the UAE is a strategic move for global expansion, asset protection, and tax efficiency. 

At Fintrack Tax Consultants LLC, we guide you through jurisdiction selection, paperwork, compliance, and banking solutions, making the process simple and efficient. 

Let our team help you achieve your international business goals with confidence.