One of the most popular options for international investors is setting up an offshore company in the UAE. This type of business setup allows non-residents to legally conduct international business, enjoy tax benefits, and maintain confidentiality, all without requiring a physical office space within the UAE.
What is an Offshore Company?
An offshore company in the UAE is a legal business entity established under a designated offshore jurisdiction. These companies are primarily used for international trade, asset protection, wealth management, and holding intellectual property. However, they are restricted from conducting direct business within the UAE market.
Top Offshore Jurisdictions in the UAE
The UAE hosts three major offshore jurisdictions:
- Jebel Ali Free Zone (JAFZA Offshore) – Located in Dubai, this is the only offshore jurisdiction that allows you to own property in Dubai and open a bank account in the UAE.
- Ras Al Khaimah International Corporate Centre (RAK ICC) – Popular for cost-effectiveness and ease of incorporation.
- Ajman Free Zone Offshore – Known for its simplicity and quick registration process.
Each of these jurisdictions provides investor-friendly policies, robust legal frameworks, and high levels of confidentiality.
Key Benefits of Setting Up an Offshore Company
- 100% foreign ownership
- No corporate or income tax
- No minimum capital requirements
- Full repatriation of profits and capital
- High confidentiality and privacy
- Access to international markets and UAE banking system
These benefits make offshore business setup in the UAE ideal for international consulting firms, trading businesses, holding companies, and property investors.
Step-by-Step Guide to Setting Up an Offshore Company
1. Choose the Right Jurisdiction:
Select the offshore zone that aligns with your business objectives and budget. Consider factors like property ownership, cost, and compliance requirements.
2. Select a Registered Agent:
All offshore companies in the UAE must be incorporated through an approved registered agent such as Kloudac. The agent handles the paperwork, legal compliance, and communication with the offshore authority.
3. Submit Required Documentation:
You’ll need to provide:
- Passport copies of shareholders
- Proof of residence
- CVs of directors/shareholders
- Business activity details
4. Name and Structure the Company:
Propose a unique company name and decide the shareholding structure. Most offshore companies are limited liability companies (LLCs).
5. Receive Incorporation Certificate:
Once approved, you will receive a certificate of incorporation, Memorandum and Articles of Association (MOA & AOA), and other key documents.
6. Open a Corporate Bank Account:
Your registered agent will assist in choosing the right bank and meeting the requirements to open a UAE corporate bank account.
Let Kloudac Simplify Your Offshore Business Setup
At Kloudac, we specialize in helping global entrepreneurs and investors navigate the UAE’s offshore business setup process with ease. From choosing the right jurisdiction to handling documentation, compliance, and bank account opening, we provide end-to-end solutions. Additionally, our tax advisory team ensures your offshore company remains compliant with international standards, including economic substance regulations and anti-money laundering (AML) laws.
