17 Jun
2025
In today’s fast-evolving business environment, the UAE continues to strengthen its reputation as a global financial hub. With world-class infrastructure, investor-friendly laws, and zero personal income tax, the country offers an excellent platform for international entrepreneurs and businesses looking to structure their operations efficiently. One of the most popular strategies for global expansion, asset protection, and tax optimization is offshore company formation.
If you’re an entrepreneur, investor, or high-net-worth individual seeking to safeguard assets, optimize taxes, or manage global operations seamlessly, forming an offshore company in the UAE could be a powerful move. In this blog, we’ll walk you through everything you need to know—from benefits and structures to recent regulatory updates and practical use cases.
An offshore company is a legal entity established in a jurisdiction outside the owner’s country of residence, primarily to operate outside that jurisdiction’s borders. In the UAE, offshore companies are designed to facilitate international trade, asset protection, and investment holdings, but they are not permitted to conduct business within the local UAE market.
Unlike mainland or free zone companies, offshore entities:
Do not require a physical office in the UAE
Allow 100% foreign ownership
Offer no corporate or income taxes on foreign income
Prioritize confidentiality and privacy
RAK International Corporate Centre (RAK ICC)
Based in Ras Al Khaimah, RAK ICC is known for its fast registration and flexibility.
Supports holding companies, family offices, and IP holding entities.
Offers nominee director/shareholder services.
Jebel Ali Free Zone (JAFZA) Offshore
Located in Dubai, it is the only offshore jurisdiction that allows property ownership in Dubai.
Ideal for real estate investments and high-profile international operations.
Ajman Offshore
One of the most affordable options.
Popular for low-cost trading and holding structures with good privacy levels.
Each jurisdiction offers its unique advantages, and the selection depends on your specific goals—whether it’s investing in real estate, safeguarding assets, or managing cross-border trade.
UAE offshore companies are not subject to corporate tax, income tax, or VAT on income generated outside the UAE. This structure is ideal for businesses that operate globally and want to optimize profits.
Recent Update: As of June 2023, UAE introduced a 9% corporate tax, but offshore companies with no UAE-sourced income remain exempt. Businesses need to ensure their income is properly structured to maintain this status.
Unlike mainland businesses that sometimes require a local sponsor, offshore structures offer full foreign ownership and allow complete repatriation of profits and capital.
Offshore jurisdictions like RAK ICC and Ajman Offshore maintain non-public registers, ensuring the identity of shareholders and directors remains confidential.
Offshore entities are often used by high-net-worth individuals to protect personal and family assets from potential litigation, economic instability, or excessive taxation in their home countries.
No requirement for audit submission or VAT registration.
No office space or staff required.
Setup typically completed in 3 to 7 working days.
Initial setup costs: USD 3,000–5,000, depending on jurisdiction and agent fees.
While offshore structures offer many advantages, there are important legal and operational considerations:
Offshore companies cannot:
Rent office space in the UAE
Sponsor visas or employees
Offer goods or services directly within the UAE
To trade locally, one must register a mainland or free zone company.
In line with global anti-money laundering (AML) standards, UAE offshore companies must now register Ultimate Beneficial Owner (UBO) information with relevant authorities. While the registry is not public, it ensures transparency with regulators.
Due to strict global KYC (Know Your Customer) and AML checks, opening a corporate bank account for offshore companies may take 4 to 12 weeks and requires strong documentation.
Although offshore entities are mostly exempt from ESR, holding companies or IP-related businesses may still be subject to reporting requirements depending on their activity and jurisdiction.
International businesses often use RAK ICC entities to consolidate shares from various subsidiaries, enabling streamlined governance and tax optimization.
Technology companies and content creators use offshore entities to manage intellectual property rights, licensing them to subsidiaries or clients worldwide.
JAFZA Offshore entities are widely used by investors to purchase and manage luxury real estate in Dubai, allowing asset protection and tax planning.
Entrepreneurs running global e-commerce operations often use offshore entities to manage international supplier contracts, payments, and revenues without unnecessary tax exposure.
In early 2024, RAK ICC introduced a centralized digital portal for company registration and compliance, reducing approval time to under 3 days in many cases.
The UAE is now on the OECD’s whitelist of compliant jurisdictions, attracting more global clients looking for compliant offshore structures.
Abu Dhabi is extending its ADGM regime to include offshore SPVs (Special Purpose Vehicles) for family offices and investment holding structures, making it a rising alternative to Dubai-based options.
Ask yourself:
Do I want to legally reduce my tax burden on international earnings?
Am I looking to protect personal or business assets?
Do I need a discreet, efficient corporate structure for holding global investments?
If the answer is “yes” to any of these, offshore incorporation may be the right strategic move.
Bizvisor has helped hundreds of global clients with strategic offshore structuring in the UAE. Here’s what you get with us:
✅ Jurisdiction and legal advisory
✅ End-to-end company formation
✅ UBO and ESR compliance management
✅ Corporate banking assistance
✅ Document notarization and translation
✅ Ongoing support for renewals and compliance
We understand how important privacy, efficiency, and global legality are for our clients—and we deliver with absolute precision.
Don’t navigate this complex process alone. Let Bizvisor guide you in selecting the right offshore jurisdiction, structuring your company legally, and maintaining full compliance with UAE laws.
👉 Book a Free Consultation with our offshore experts today.
📧 Email: support@bizvisor.ae
🌐 www.bizvisor.ae
We use cookies for essential website functions and to better understand how you use our site, so we can create the best possible experience for you Privacy Policy
