Dubai has emerged as one of the top global destinations for offshore business incorporation, thanks to its tax-friendly environment, strategic location, and investor-friendly policies. If you’re looking to expand globally or protect assets legally, an offshore business setup in Dubai could be the ideal solution.
This article explores everything you need to know about starting an offshore company in Dubai—from benefits and legal requirements to setup procedures.
What is an Offshore Company in Dubai?
An offshore company in Dubai is a non-resident business entity established under one of the UAE’s offshore jurisdictions. It is primarily used for international business operations, asset protection, tax planning, and holding investments. These companies are not permitted to conduct business within the UAE but can operate internationally.
Popular Jurisdictions for Offshore Setup
There are three main offshore jurisdictions in the UAE where you can set up an offshore business:
JAFZA Offshore (Jebel Ali Free Zone)
RAK ICC (Ras Al Khaimah International Corporate Centre)
Ajman Offshore
Among these, JAFZA Offshore is the only jurisdiction that allows owning property in Dubai under an offshore company.
Benefits of Offshore Business Setup in Dubai
100% Foreign Ownership
Zero Corporate and Income Taxes
Confidentiality & Privacy of financial and ownership information
No Requirement for Office Space in the UAE
Low Setup and Operational Costs
Ease of International Business: Open multi-currency bank accounts and operate globally
Step-by-Step Process for Offshore Company Formation
Choose a Jurisdiction: Based on your business goals and legal needs
Appoint a Registered Agent: Offshore companies must be set up through a licensed agent
Submit Required Documents:
Passport copies of shareholders
Proof of address
Business plan (if applicable)
Bank reference letter
Company Name Reservation: Unique and compliant with UAE naming guidelines
Document Signing & Approval: Finalize incorporation documents
Certificate of Incorporation Issued: Once approved, the offshore company is legally formed
Cost of Offshore Business Setup
The cost of setting up an offshore company in Dubai typically ranges from AED 10,000 to AED 20,000, depending on the jurisdiction and agent fees. There are no audit or renewal requirements for many offshore entities, keeping operational costs low.
Who Should Consider Offshore Setup?
International traders and import/export businesses
Asset protection and estate planning needs
Investors in global real estate and stock markets
IP and royalty holders
Holding companies for subsidiaries
Restrictions of Offshore Companies
Cannot trade within the UAE market
Cannot apply for UAE residence visas
Limited options for UAE banking (varies by jurisdiction)
Final Thoughts
An offshore business setup in Dubai is a smart, efficient way to expand your global reach while enjoying the tax advantages and regulatory flexibility that the UAE offers. Whether you’re a global entrepreneur, investor, or company looking for asset protection, Dubai’s offshore jurisdictions offer a secure and business-friendly environment.
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