Offshore companies are the ideal type of company for businesses looking to set up in the UAE but don’t intend to offer local services. For most businesses requiring an offshore company, we recommend the RAK (Ras Al Khaimah) Free Zone.
When compared to the other business incorporation options available in the UAE, they are often the easiest and most cost efficient solution. They are also very flexible in terms of the abilities to make any corporate changes further down the line.
Benefits of RAK Offshore Company:
– There are no capital deposit requirements
– The company can be incorporated remotely, no need for the shareholder to visit
– The companies are tax free
– No notarized signatures are required
– No account filing requirement
– Corporate changes can be done in 12 days for relative low fees (because no lawyer/notary is involved)
Limitations of RAK Offshore Company:
– No visa application is possible
– No local activities are allowed, you can only do business with overseas clients
– Tax treaties are not applicable
The basic costs to register an offshore company in RAK are around 3.000 5.000 USD depending on the exact services required.
Apart from RAK, you also have an option for setting up an Offshore Company in Jebel Ali (Dubai) Free Zone or in Ajman Free Zone.
The Jebel Ali option is a bit more prestigious as it is located in Dubai but it costs nearly twice as much and is not as flexible as the RAK option. An offshore company in Jebel Ali requires at least 2 directors, the shareholder to visit in person to sign the required documents and for accounting records to be filed for a period of 10 years! The only advantage (other than being in Dubai) is that a Jebel Ali offshore company is permitted to own real estate in Dubai.
The other option, Ajman, is very similar to RAK and in fact the only real difference is that Ajman is a fairly new Free Trade zone and does not have the same recognition as RAK.