Offshore company in the UAE

A UAE offshore company (RAK ICC or JAFZA Offshore) is a holding vehicle that does not operate in the UAE. It can own shares, real estate, IP and investments, but it cannot trade inside the UAE, rent an office or sponsor visas. Formation costs from roughly AED 8,000 and annual upkeep from about AED 6,000, a fraction of the cost of a licensed company. Both registries accept applications only through an approved registered agent, so we prepare the file and coordinate with the agent. An offshore company does not give its owners UAE tax residency, and a bank will open an account only if the structure has a clear purpose.

What a UAE offshore company is used for

An offshore company holds ownership; it does not carry on activity. The legitimate uses are few but long-lasting: holding shares in other companies (including UAE free zone and mainland companies), owning approved real estate, holding intellectual property and investment portfolios, and serving as an estate-planning vehicle that outlives a founder and passes cleanly to heirs.

Check that list against your plan before you spend anything. If the company will only ever own things, an offshore company is the cheapest suitable structure. As soon as it needs to invoice a client, employ someone or sign a lease, it is the wrong tool, and no registered agent can change the registry’s rules. A common and legitimate pattern has two layers: a free zone company does the trading and an offshore company above it acts purely as the holding company.

RAK ICC and JAFZA Offshore compared

Two registries are worth considering. RAK ICC, the Ras Al Khaimah International Corporate Centre, is the usual choice: its rules follow common-law company practice, it allows redomiciliation in both directions (an existing foreign company can move in, or an ICC company can move out), and it costs less to enter. JAFZA Offshore, run by the Jebel Ali Free Zone Authority, has long been accepted by the Dubai Land Department for holding freehold property in Dubai. Since 2019 the Dubai Land Department has also registered freehold property for RAK ICC companies whose shareholders are natural persons, so check its current requirements for your structure before you buy.

Choose by the asset and the owners. For most holding, IP and structuring purposes RAK ICC is the lower-cost option; JAFZA Offshore is often chosen when a Dubai property is the main asset.

What an offshore company cannot do

An offshore company cannot trade inside the UAE, cannot rent a UAE office, cannot sponsor residence visas for you, your staff or your family, and cannot open a bank account as easily as a licensed company. These limits are the trade-off for a much lower cost and no operating overhead.

If any of these is part of your plan, an offshore company on its own will not work. You need a licensed free zone or mainland company, sometimes with an offshore company holding it. Settling this before formation is the most useful part of our work on these engagements.

Offshore company costs and annual maintenance

Formation costs roughly AED 8,000–15,000 including registered agent fees, and annual maintenance is a fraction of a licensed company’s, because there is no establishment card, visa file or office lease. The figures below are realistic minimums; the total depends on the registry, the agent’s fee and any extra documents or services you add.

The annual fee pays for the registered agent, the registered office address the registry requires and the filings that keep the company in good standing. It does not include a bank account, tax residency or any operating capability. Those are separate matters, and an “offshore package” that folds them into one price makes it hard to see what you are paying for.

Corporate tax and tax residency for an offshore company

An offshore company does not make you personally a UAE tax resident; for individuals, that depends on days spent here, a home or a job, or where your personal and financial life is centred. See tax residency for the tests. The company is a different matter: it is incorporated under UAE law, so for UAE corporate tax it is a resident person and must register with the Federal Tax Authority and file returns, even if it only holds assets.

Corporate tax is 0% on taxable income up to AED 375,000 and 9% above that. For a pure holding company, dividends and gains from shareholdings that meet the participation exemption conditions are generally exempt, so its taxable income is often small or nil. The result depends on the facts, so we set out the analysis in writing for each structure instead of promising that it is tax-free. Whether the company can obtain a Tax Residency Certificate that another country will accept depends on the FTA’s requirements and the treaty in question, so do not build a structure on the assumption that it will.

Opening a bank account for an offshore company

The bank account is the main caveat with any offshore company. UAE banks open accounts for offshore companies selectively and slowly, and international banks ask directly why the structure exists. A clear answer prepared in advance (asset protection, consolidation of holdings, succession) counts for more than any agent’s claimed contacts.

Several banks work with RAK ICC and JAFZA Offshore companies, with enhanced due diligence, a clear structure chart and some patience; realistically it takes weeks. We prepare the account file (ownership chart, source-of-funds explanation and the purpose of the structure) to the standard a compliance team reads, because that file is where most approvals and rejections are decided.

How the offshore setup works with us

We start from the question a compliance officer will ask. First we check whether an offshore company is the right instrument at all, or whether a free zone company or a two-layer structure fits your plan better. Then we choose RAK ICC or JAFZA Offshore by the asset, prepare the incorporation file for the registry-approved registered agent, who files it (typically 3–7 business days), and prepare the bank file in parallel.

Every fee is a visible line: registry, registered agent, annual office and our work. Remove any line you want to handle yourself and the price falls accordingly. A structure built this way can answer a bank’s questions about what it is for.

Offshore company costs and timeline

Frequently asked questions

This is general information on UAE rules. It is not legal, tax or immigration advice for your situation. Rules and government fees change; we confirm the position for your facts in writing before you act.