Offshore Company Formation in UAE

UAE offshore companies are governed by explicit regulations devised to provide a secure and efficient business environment for international operations. The main jurisdictions for offshore companies in the UAE are:

Jebel Ali Free Zone Authority (JAFZA)
Abu Dhabi Global Financial Markets (ADGM)
Ras Al Khaimah International Corporate Centre (RAK ICC)
Ajman Offshore

These jurisdictions function under their respective laws, rules and regulations:

JAFZA offshore companies are regulated by the Jebel Ali Free Zone Offshore Companies Regulations 2018
ADGM was established pursuant to Federal Decree No. 15 of 2013 and Abu Dhabi Law No. 4 of 2013. The Application of English Law Regulations 2015 make English common law (including rules and principles of equity) directly applicable in ADGM.
RAK ICC offshore companies operate under the RAK ICC Business Companies Regulations 2018
Ajman offshore companies are governed by the Ajman Offshore Companies Regulations of 2014, which established Ajman as a global offshore jurisdiction through the Ajman Free Zone Authority (AFZA)

Key Rules and Requirements

Formation and Structure

1 Minimum of one shareholder and one director is required

2 A company secretary is also necessary

3 100% foreign ownership is permitted

4 No minimum share capital is required, but it should be commensurate with the company's proposed activities

Registered Office and Agent

Offshore companies must maintain a local Registered Agent approved by the authorities
A local Registered Office is required, usually provided by the Registered Agent

Offshore companies in the UAE are primarily used for:

International trade
Formation of holding companies
Owning real estate
Registration of copyrights and patents
International consulting services

Restrictions

Offshore companies cannot conduct business within the UAE mainland or with UAE residents
They are prohibited from having a physical office or commercial presence in the UAE
Certain activities like banking, insurance, and financial services are expressly prohibited

Compliance and Reporting

Annual renewal of registration is required
While audited financial statements are not mandatory, accurate financial records must be maintained
Compliance with UAE’s Anti-Money Laundering (AML) regulations is necessary

The tax exemption is guaranteed for 15 years, with a possibility of extension for another 15 years

Confidentiality

Shareholder and director information is kept confidential, enhancing privacy and security

However, beneficial ownership reporting is mandatory to ensure transparency

Banking Offshore companies can open and operate multi-currency accounts within the UAE

By adhering to these rules and regulations, offshore companies in the UAE can leverage the benefits of tax efficiency, asset protection, and ease of international operations while maintaining compliance with local laws.

UAE offshore companies offer numerous advantages for international investors and entrepreneurs. Here are the key benefits of setting up an offshore company in the UAE: Tax Advantages

Tax Advantages

UAE offshore companies enjoy significant tax benefits, including:

0% corporate subject to Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businessesand no personal income tax
Exemption from customs duties, VAT, capital gains tax, and withholding tax
Double Taxation Avoidance Agreements (DTAA) with over 40 countries, preventing double taxation on income

These tax advantages allow businesses to retain a larger portion of their profits and reinvest in growth and development.

Asset Protection and Privacy Offshore companies in the UAE provide enhanced asset protection and privacy:

Legal separation between personal and business assets, protecting personal wealth from business liabilities
High level of confidentiality for business owners and shareholders
Option to appoint nominee shareholders for increased privacy

Unlike some jurisdictions, UAE offshore companies allow:

Complete foreign ownership without the need for a local partner or sponsor
Full control over business operations and decision-making

Easy Setup and Maintenance Establishing an offshore company in the UAE is straightforward:

Fast incorporation process, typically taking 3-7 working days
Minimal documentation requirements
No need for physical office space
Low setup and maintenance costs compared to other offshore jurisdictions

Financial Flexibility UAE offshore companies benefit from:

Access to multi-currency bank accounts
No restrictions on currency transactions or capital repatriation
Ability to conduct international business activities

Global Market Access The UAE’s strategic location offers:

Legal Framework and Business Environment

The UAE provides:

Strong legal protection for businesses

Business-friendly regulations and policies

Flexible company structures to suit various business needs

UAE offshore companies offer a compelling combination of tax efficiency, asset protection, global market access, and operational flexibility, making them an attractive option for international businesses and investors.

We provide our support services across all offshore companies’ setup in the UAE and other international jurisdictions,