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Offshore company formation in UAE

10 May 2020 - Posted by to Offshore Company

An offshore company is an entity setup for the purposes of carrying out its business outside the Jurisdiction or country in which it is registered.

In the UAE there are 3 offshore jurisdictions: JAFZA Offshore company, RAK ICC Offshore and Ajman Offshore company. Offshore company formation in any of them comes with similar core qualities: no tax, international business operations, UAE bank account, no resident visa.

Offshore company formation in UAE is one of the quickest incorporation types and also has the lowest annual maintenance cost.

Major similarities about Offshore Companies:

  • They can carry out the business outside the UAE
  • Expected business transactions or income to be from outside the UAE
  • Not eligible to apply for UAE resident visa at any point in time
  • No Corporate tax or Value added tax applicable
  • Mandatory to open company through Offshore company formation agents
  • 100% Ownership and repatriation of capital

JAFZA Offshore Company

Following the Jebel Ali Free zone Offshore regulations, in 2003 the Jebel Ali Free zone Authority (JAFZA) permitted many investors to be able to launch offshore entities in Dubai. This free zone is one of the largest free zones of the Emirate which has great transportation opportunities due to its port. Company formation in Dubai airport free zone is a second option if you are into logistics since it is located next to the DXB airport.

Getting back to JAFZA offshore: one major important factor for most investors is that JAFZA doesn’t allow service activities like consulting, management, etc. Only trading business is welcomed.

The JAFZA Offshore company has a minimum requirement of 1 shareholder and the same person can take the position of the secretary as well as the director. The shareholder’s physical presence will be required at the JAFZA authorities during the registration procedure.

The Business activities for JAFZA are restricted to:

  1. Buying properties
  2. Buying shares in the free zone and mainland companies
  3. Trading activities subject to approval from JAFZADocuments Required

Documents Required

  1. Passport Copy of the Shareholder(s)
  2. Copy of Immigration/Employment Status
  3. Recent UAE Entry stamp page on passport (for non-residents)
  4. Visa Page Copy (for residents)
  5. Proof of Address – Utility Bill (telephone or electricity bill)
  6. Shareholder(s) Profile – CV/ Resume (most up to date)

RAK ICC offshore

RAK ICC is mostly known as the RAK International Corporate Centre located and operating in the Emirate of Ras Al Khaimah, offering offshore company formation services. The RAK ICC incorporates internationally renowned business entities as well as provide comprehensive registry services.

The RAK ICC offshore has an extensive list of business activities shareholders can choose from.

The registration can be done by Individual shareholders or alternatively the company can be owned by Corporate shareholders or a mixture of both depending on the needs of each client.

This offshore jurisdiction offers easy registration procedures. In the event of having a corporate shareholder there is no requirement from the RAK ICC authority to attest the company documents of the parent entity during the offshore corporation formation. However, though it could reduce the hustle of attesting documents once the company is registered if you intend to open a company bank in the UAE the banks would request the attested documents of the parent company.

Company setup can be done without visits to the UAE. Only if you need to open a bank account in the UAE, a personal visit will be required.

The RAK ICC company’s unique advantage is that even though offshore companies cannot be able to apply for UAE resident visas, the RAK ICC has an option to apply for a dual license: an offshore entity combined with a RAKEZ Free zone company which will be able to give you resident visas.

Once the companies are registered and both licenses are issued, the visa related procedures will be completed with RAKEZ Free zone authority and this can be done by the help of our esteemed business setup consultants in Dubai.

The RAK ICC offshore formation in UAE is one of the most cost efficient setups, which can be done for 3,150 USD.

One of the recently added advantages for the RAK ICC company is that it can now hold properties in Dubai.

Ajman Offshore

The Ajman Offshore has been up and running since 2014. This particular offshore jurisdiction falls under the authority of Ajman Free zone authority. Key important factors about Ajman offshore company is that the company can be registered with single or multiple shareholders. The company can have the same shareholder as the director, secretary or they can choose a different individual to hold these positions. During the Ajman company registration, the physical presence of the shareholders is not required , the respective signatories can arrange all relevant signatures with their registered agent. An annual audit will be required and the company is renewed on a yearly basis.

Activities Permitted by Ajman Offshore

  • General Trading
  • Consultancy/Advisory Services
  • Holding Company (Buy/Hold/Sell stakes of companies)
  • Investments and Joint Investments Company
  • Property Owning (Subject to the respective local laws of each Emirate, City and Country)
  • International services
  • Professional Services
  • Shipping and ship management companies
  • Commission Agents/Brokers

Ajman Company Registration requirements

  • Passport Copy
  • Utility Bill

Our team of business setup experts will be happy to reply to any questions regarding any type of UAE company incorporation. SImply contact us now and get your questions answered!

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