Offshore company formation
Offshore companies in the UAE
An offshore company is a non-trading entity used to hold assets and run international activity. It is incorporated through a registered agent with an offshore registry such as JAFZA Offshore or RAK ICC — and it has clear limits you should know before choosing it.
Overview
When an offshore company makes sense
Offshore companies are typically used as holding companies, to own property or shares, or for trade and investment that takes place outside the UAE. They receive a certificate of incorporation rather than a trade licence.
They cannot trade with customers inside the UAE, do not need a UAE office and cannot sponsor UAE residence visas. If you need any of those, a free zone or mainland company is the right tool.
At a glance
- RegistryFor example JAFZA Offshore or RAK ICC
- Ownership100% foreign ownership
- Trading in the UAENot permitted
- OfficeNot required — registered agent address
- Residence visasNot available
- Bank accountPossible, with enhanced due diligence
FAQs
Offshore questions
Can an offshore company open a UAE bank account?
It can, but banks apply enhanced due diligence and decide case by case. Expect to explain the ownership structure, the purpose of the company and the source of funds in detail.
Is economic substance reporting still required?
Economic Substance reporting no longer applies for financial years ending after 31 December 2022, although earlier years can still be reviewed. Beneficial-ownership records must still be kept.
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