Offshore Company Setup in the UAE (2025)
Offshore company setup in the UAE is a strategic decision for global entrepreneurs, investors, and corporations seeking 100% foreign ownership, 0% corporate tax on foreign-sourced income, and strong financial privacy. UAE offshore jurisdictions—such as JAFZA Offshore (Jebel Ali Free Zone) and RAK ICC (Ras Al Khaimah International Corporate Centre), offer a streamlined, cost-effective route for establishing internationally focused legal entities.
An offshore company registration in UAE is ideal for cross-border trade, international consultancy, asset protection, IP holding, wealth management, and global investment structuring—without the need to lease office space or operate within the UAE mainland.
Whether your goal is to legally reduce tax exposure, centralize ownership, or manage multinational transactions, offshore company formation in UAE provides a trusted, compliance-ready platform within one of the world's most business-friendly environments.
With , you can handle the entire setup from one secure platform. Instantly connect with vetted legal experts and registered company formation agents who can help you structure your offshore entity, prepare all documentation, and open a UAE or international bank account. Track every step—incorporation, KYC, licensing, and banking—all in one place with Binderr.
Read More: Company Formation in the UAE
Can a Foreigner Open an Offshore Company in UAE?
Yes, a foreigner can open an offshore company in the UAE with 100% ownership, making it an ideal solution for international entrepreneurs, investors, and business owners. In fact, one of the key advantages of offshore company formation in the UAE is that there is no requirement to be a UAE resident or to have a local partner involved in the ownership structure.
Another major benefit is that there is no requirement for a local office space. Offshore companies in the UAE can be formed without leasing physical premises, significantly reducing operational costs and administrative obligations. This makes offshore company setup in UAE both efficient and cost-effective for those looking to manage global operations remotely.
Whether you’re interested in offshore company registration in UAE for international trade, asset protection, or holding investments, the process is designed to be straightforward and welcoming to foreign individuals.
Offshore vs Free Zone vs Mainland Companies
| Feature | Offshore | Free Zone | Mainland |
|---|---|---|---|
| Foreign Ownership | 100% | 100% | Allowed (with conditions) |
| Local Operations | ❌ Not Allowed | ✅ Allowed in zone | ✅ Full access |
| Office Requirement | ❌ Not Required | ✅ Required | ✅ Required |
| Bank Account | ✅ Possible | ✅ Possible | ✅ Easy |
| Tax Benefits | ✅ Full Exemption | ✅ Partial (some zones) | ❌ Limited |
Offshore vs Free Zone vs Mainland Companies
Choosing between offshore, free zone, and mainland structures in the UAE depends on your business objectives and operational needs.
Mainland companies allow you to conduct business anywhere within the UAE, including with government entities. While a local partner was traditionally required, many sectors now permit 100% foreign ownership. These companies must lease physical office space and comply with UAE labor laws, making them ideal for businesses targeting the local market or requiring a physical presence.
Free zone companies, such as those set up in DMCC, ADGM, or RAKEZ, offer 100% foreign ownership, tax exemptions, and the ability to apply for UAE residency visas. However, they are generally limited to operating within their specific free zone or exporting goods and services internationally. Leasing office space within the zone is mandatory, even for smaller or remote-operated companies.
Offshore companies, by contrast, are designed primarily for international business. Offshore company setup in UAE offers complete foreign ownership with no requirement for physical office space or employee visas. Offshore companies cannot operate within the UAE mainland but are ideal for international trading, asset protection, or holding intellectual property.
With lower setup and renewal costs, minimal compliance, and maximum confidentiality, offshore company formation in the UAE is a popular option for global investors. Offshore company registration in UAE is also streamlined and efficient, making it accessible to foreign entrepreneurs who want a presence in a reputable jurisdiction without onshore obligations.
Top Offshore Jurisdictions in the UAE
When considering offshore company formation in UAE, choosing the right jurisdiction is crucial. The UAE offers several reputable offshore zones, each with its own advantages in terms of cost, processing time, ownership rights, and regulatory flexibility. Below are the most popular jurisdictions for offshore company setup in UAE:
- JAFZA Offshore (Dubai) is one of the most prestigious options for offshore company registration in the UAE. Located within the Jebel Ali Free Zone, it allows 100% foreign ownership, offers zero corporate and income taxes, and uniquely permits property ownership in designated freehold areas of Dubai. Its strong reputation and robust governance make it ideal for high-profile international businesses and holding companies.
- RAK ICC (Ras Al Khaimah International Corporate Centre) is a cost-effective and fast-growing hub for offshore company formation in UAE. Known for its speed and simplicity, RAK ICC allows full foreign ownership, does not require office space, and offers incorporation within 3 to 5 business days. It also provides confidential nominee director and shareholder services, making it a top choice for asset protection and privacy-focused structures.
- Ajman Offshore, regulated by the Ajman Free Zone Authority since 2014, is another attractive option for affordable offshore company setup in UAE. It provides 100% foreign ownership, zero taxes, full repatriation of capital and profits, and high document confidentiality. Ajman Offshore is often chosen by small businesses and startups seeking a low-cost international structure with minimal compliance.
- Other jurisdictions such as UAQ Offshore (Umm Al Quwain), Sharjah’s SAIF Zone, and newer entrants like Abu Dhabi Global Market (ADGM) and Dubai International Financial Centre (DIFC) also support international business activity. However, ADGM and DIFC operate under separate legal frameworks and regulatory models and are not classified as traditional “offshore jurisdictions”. They cater more to regulated financial services and global corporate entities with more complex requirements.
While all these jurisdictions support streamlined offshore company registration in UAE, the cost and scope of permitted activities vary. For instance, offshore company formation in RAK ICC can start around USD 2,000, while JAFZA Offshore typically starts from USD 4,000 due to its premium status and added real estate capabilities.
UAE Offshore Company: Legal Framework and Ownership
The legal framework for an offshore company in UAE is designed to support international business with a high degree of flexibility, privacy, and ease of administration. Offshore companies are typically incorporated under regulations of specific offshore jurisdictions such as RAK ICC, JAFZA Offshore, or Ajman Offshore, each governed by distinct legal authorities.
Legal Form: The most common legal structure used in offshore company registration in UAE is the International Business Company (IBC). This format allows the entity to conduct a wide range of non-resident business activities such as holding assets, managing investments, and conducting international trade, all without requiring a physical presence or doing business within the UAE mainland.
Ownership Structure: One of the major benefits of offshore company setup in UAE is that it allows 100% foreign ownership. No UAE national or local sponsor is needed, giving international entrepreneurs complete control over their offshore entity.
Directors and Shareholders: UAE offshore jurisdictions generally require a minimum of one director and one shareholder, and they can be the same person. This makes the offshore company formation in UAE highly attractive to solo entrepreneurs and small business owners who want streamlined governance.
Confidentiality and Privacy: Offshore company registration in UAE offers strong confidentiality protections. The names of directors and shareholders are not disclosed in any public registry, ensuring full privacy for business owners.
Setup an Offshore Company in the UAE Online!
To navigate the evolving regulatory environment around offshore company formation in UAE, it is essential to work with qualified legal professionals and trusted company formation agents.
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Step-by-Step Guide to Setting Up an Offshore Company in the UAE
For entrepreneurs and investors looking to establish a flexible and tax-efficient entity, following the right steps is essential to ensure a smooth offshore company setup in UAE. Here's how to navigate the process effectively:
- Choose the Right Jurisdiction
Start by selecting the most suitable offshore jurisdiction for your needs. Options like RAK ICC, JAFZA Offshore, and Ajman Offshore each offer different benefits depending on your budget, timelines, and strategic objectives. The choice of jurisdiction can significantly impact the overall structure and flexibility of your offshore company formation in the UAE. - Define Your Business Activity
Clearly define the intended purpose of the offshore company—whether it's holding assets, trading internationally, managing intellectual property, or providing consultancy. Ensure that your chosen jurisdiction permits the type of activity you plan to undertake as part of your offshore company registration in UAE. - Reserve the Company Name
Propose a unique company name and reserve it with the respective offshore authority. The name must comply with UAE naming guidelines and should typically end with “Limited” or “Ltd.” Name approval is required before you can proceed further with your offshore company setup in UAE. - Prepare the Required Documentation
Gather all necessary documents for shareholders and directors, including notarized passport copies, proof of address, bank reference letters, and CVs. You'll also need to draft the Memorandum and Articles of Association (MOA/AOA) and outline your shareholding structure, which are core requirements for offshore company formation in UAE. - Appoint a Registered Agent
A licensed UAE corporate services provider must be appointed to manage the incorporation process. Registered agents are responsible for submitting all paperwork and liaising with the offshore authority on your behalf. This step is legally required for offshore company registration in UAE. - Submit the Incorporation Application
Your registered agent will submit the application, MOA/AOA, shareholder and director documents, and any supporting forms to the offshore authority. Upon approval and payment of the registration fees, the Certificate of Incorporation is issued—completing your offshore company formation in UAE. - Open a Corporate Bank Account
With incorporation documents in hand, open a corporate bank account either in the UAE or internationally. Offshore companies often benefit from multi-currency accounts to support global operations. Using platforms like Binderr Marketplace, you can streamline the process of finding banks that support offshore company setup in UAE. - Commence Business Operations
Once the company is registered and the bank account is active, you may begin legal business activities internationally. Be sure to renew your company license annually to maintain compliance and good standing.
Following this checklist ensures your offshore company registration in UAE proceeds smoothly, with full legal compliance and minimal delays.
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Costs to Set Up an Offshore Company in the UAE
| Item | Approximate Cost (USD) |
|---|---|
| Government Fees (varies by jurisdiction) | $1,500 – $2,500 |
| Registered Agent Services | $1,000 – $2,000 |
| Annual Renewal (from Year 2) | $1,500+ |
| Bank Account Setup (Optional) | $500 – $1,000 |
| Total (First Year Estimate) | $3,000 – $5,000+ |
For an all-in-one solution to manage your offshore company formation in UAE, explore Binderr Marketplace. Instantly connect with verified company formation agents, legal experts, and banking partners — all from one platform.
Banking for Offshore Companies in the UAE
Opening a UAE corporate bank account for your offshore company is a crucial step but requires careful preparation due to enhanced scrutiny and regulatory requirements.
Account Opening Process
Banks conduct thorough KYC and AML checks for foreign-owned offshore companies. While typical account approval can take 2–4 weeks for mainland or free zone companies, offshore entities often face longer waiting periods of 8–12 weeks due to additional due diligence. Using a platform like Binderr Marketplace can significantly simplify selecting suitable banks and managing your application process efficiently.
Bank Options Available
Major UAE banks such as Emirates NBD, Mashreq, RAKBANK, FAB, and ADCB offer business accounts tailored for international companies. Emirates NBD and ADCB provide robust trade finance and multi-currency solutions, while Mashreq’s NeoBiz and emerging digital banks like Wio and Zand focus on fast online onboarding designed for SMEs. Each bank has distinct requirements, features, and minimum balance policies, so it’s important to choose one aligned with your offshore company’s needs.
Multi-Currency Corporate Accounts
Since offshore companies typically operate globally, multi-currency accounts holding USD, EUR, AED, and other currencies are essential. Many UAE banks and fintech providers offer dedicated multi-currency accounts designed for international transactions and currency risk management.
Required Documentation
To open a corporate account, you will generally need the Certificate of Incorporation, Commercial Registry documents, Memorandum and Articles of Association (MOA/AOA), board resolution authorizing the account opening, valid passports of shareholders and directors, and proof of address. Some banks may also require a UAE-resident signatory if the offshore company lacks local presence.
Minimum Balances and Fees
Standard corporate accounts usually require minimum balances ranging from AED 50,000 to AED 100,000, with maintenance fees triggered if the balance falls below the threshold. However, some banks offer zero-balance accounts with limited features, such as Mashreq’s NeoBiz Lite and RAKBANK’s RAKstarter, which cater to startups and smaller businesses.
Simplify Your Offshore Banking Setup with Binderr Marketplace
Navigating the complex banking landscape for offshore companies in the UAE can be time-consuming and overwhelming. Binderr Marketplace offers a seamless solution to help you:
- Identify the best banking partners aligned with your offshore company’s profile
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Whether you’re setting up your first offshore company in UAE or expanding operations, Binderr connects you with trusted banking partners and expert advisors to make your offshore company banking smooth, compliant, and hassle-free.
Taxation and Reporting for Offshore Companies in the UAE
One of the most attractive features of offshore company formation in UAE is the highly favorable tax environment, particularly for entities with no UAE-sourced income.
Corporate Tax: Under the UAE’s corporate tax regime introduced in June 2023, companies earning over AED 375,000 in UAE-based profits are subject to a 9% corporate tax. However, setting up offshore companies in the UAE remain exempt if the business earns only foreign-sourced income. Therefore, most offshore entities pay 0% corporate tax under current law.
Furthermore, RAK ICC has introduced a unique hybrid model. Offshore companies registered there may apply for a free zone license and still qualify for the 0% tax rate by meeting the “Qualifying Free Zone Person” conditions under the UAE tax framework. This makes offshore company registration in UAE through RAK ICC an especially tax-efficient option for eligible businesses.
Value-Added Tax (VAT): Offshore companies that do not conduct business within the UAE mainland are not required to register for VAT. Since they provide no taxable supplies inside the country, these entities are generally outside the scope of UAE VAT regulations.
Other Taxes: The UAE does not levy personal income tax or capital gains tax, so individual shareholders of offshore companies enjoy tax-free dividends and profit distributions.
Reporting and Compliance Obligations: Offshore companies in the UAE benefit from simplified compliance requirements:
- No requirement for statutory audits or audited financial statements
- Annual license renewal required through a registered agent
- Companies must maintain accounting records, contracts, and corporate documentation for a minimum of 10 years
Despite their low-maintenance structure, all offshore company formation in the UAE must comply with federal transparency rules.
Documents Required to Set Up an Offshore Company in UAE
To successfully complete your offshore company registration in UAE, you’ll need to provide the following documents. These are required both for company formation and for opening a corporate bank account:
- Identification: Certified passport copies of all shareholders and directors
- Proof of Address: Recent utility bill or bank statement (not older than 3 months) for each shareholder/director
- Professional Background: CV or résumé of each shareholder and director to meet due diligence requirements
- Company Details: Proposed company name, business activity, and shareholding structure
- MOA/AOA: Draft Memorandum and Articles of Association (usually prepared by your registered agent)
Incorporation Documents for Banking (after setup):
- Certificate of Incorporation
- Shareholder register
- Board resolution authorizing the account
- Company license, MOA/AOA
- Passport copies of authorized signatories
- Proof of address and, in some cases, a business plan or projected cash flow
Providing complete and accurate documents ensures a smooth offshore company formation in UAE and faster bank account approval.
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Why Set Up an Offshore Company in the UAE?
Offshore company registration in the UAE continues to attract international entrepreneurs due to a powerful combination of tax benefits, legal protections, and ease of operation. Whether you're considering offshore company formation in UAE for international trade, investment, or asset protection, the advantages are clear:
- Full Foreign Ownership: You retain 100% ownership of the offshore company without requiring a local partner or sponsor.
- Tax Efficiency: The UAE offers zero corporate and income taxes on foreign-sourced income. Offshore entities are also exempt from VAT on eligible cross-border transactions, making offshore company setup in UAE highly tax efficient.
- Confidentiality: The names of shareholders and directors are not publicly disclosed, providing a high level of privacy for individuals and businesses.
- Asset Protection: The UAE’s offshore jurisdictions offer strong legal structures, including the use of nominee directors or shareholders, to protect assets from legal claims, creditors, or external risks.
- Real Estate Ownership: JAFZA offshore companies are allowed to purchase and hold property in approved freehold areas in Dubai, offering unique investment opportunities.
- Ease of Maintenance: There is no requirement for a physical office, no need to hire staff, and no visa obligations. Offshore companies also enjoy simplified annual compliance with no mandatory audits.
These factors make offshore company setup in UAE a strategic move for global investors and entrepreneurs seeking a business-friendly, tax-neutral jurisdiction with strong asset protection laws and international credibility.
Bottom Line
Looking to protect your assets, optimize your taxes, and expand globally — all without the burden of office rent or complex bureaucracy?
Offshore company setup in UAE offers unmatched advantages:
✔ 100% foreign ownership
✔ 0% corporate and income tax (on foreign-sourced income)
✔ No requirement for physical office space or employees
✔ Full confidentiality with nominee director/shareholder options
✔ Fast, low-cost incorporation in global hubs like RAK ICC and JAFZA
But setting it up alone? That’s where mistakes are made.
Binderr Marketplace — Your all-in-one platform for offshore success.
With Binderr, you can:
- Compare vetted company formation agents across top jurisdictions
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Whether you're a founder, investor, or consultant, Binderr simplifies offshore company registration in UAE so you can focus on growth, not paperwork.