Company setup
Offshore company formation in the UAE
A UAE offshore company is registered with one of the country's offshore registries, in Dubai, Ras Al Khaimah or Ajman. It is used to hold shares, property and other assets or to do business outside the UAE. It cannot trade in the local market, rent a shop or sponsor residence visas, and it is formed through a registered agent.
At a glance Fact sheet
- Registered with
- An offshore registry in Dubai, Ras Al Khaimah or Ajman
- Can trade in the UAE
- No. It cannot sell goods or services to customers in the local market
- Residence visas
- No. An offshore company does not sponsor visas
- You receive
- A certificate of incorporation in place of a trade licence
- Formed through
- A registered agent approved by the registry
- Typical use
- Holding shares and property, international trade and services, family asset planning
Overview
The word offshore causes confusion, so start with what it means here. A UAE offshore company is a real legal entity registered inside the country, under the regulations of a registry set up for non-resident business. It has shareholders, directors, a registered address and constitutional documents like any other company.
What it lacks is permission to operate in the local economy. It has no trade licence, so it cannot invoice customers in the UAE, open a shop or office to serve the public or hire staff on residence visas. Its address is the office of its registered agent. In return it is simple to run and well suited to owning things: shares in other companies, property where the registry and the land department allow it, intellectual property or investments.
Founders sometimes ask for an offshore company when they really need a free zone company, usually because they want a visa or a local invoice. Caliph asks what the company will own, earn and sign before recommending a registry, and tells you plainly when a different route fits better.
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What an offshore company is used for
Holding shares in other companies
An offshore company can sit above operating businesses in the UAE or abroad, keeping the ownership in one place.
Owning property
Some registries have arrangements for their companies to own real estate in Dubai, subject to the land department's conditions.
International trade and consulting
It can contract with suppliers and clients outside the UAE and receive payment into its own bank account.
Succession and family planning
Shares in one company are easier to pass on or divide than a collection of separate assets in different names.
A base for a later operating company
If you later need visas or local sales, a free zone or mainland company can be added beneath it or beside it.
How offshore formation works
Purpose first
You explain what the company will hold or do. Your consultant confirms an offshore company can do it and suggests the registry.
Registered agent
The main offshore registries work through registered agents. The agent files the application and stays the company's point of contact with the registry.
Names and structure
You choose the name, the shareholders, the directors and the share capital, and the constitutional documents are drafted.
Due diligence documents
Identity and address documents for each owner and director are collected and certified as the registry requires.
Incorporation
The registry reviews the file and issues the certificate of incorporation and the company documents.
Bank account
With the company documents in hand, Caliph prepares the file for the bank you choose.
Questions people ask
What is an offshore company in the UAE?
It is a company registered with a UAE offshore registry for business outside the country and for holding assets. It is a legal entity with its own name, shareholders and directors, but it has no trade licence, no right to trade in the local market and no visa allocation.
Can an offshore company do business inside the UAE?
No. It cannot sell goods or services to customers in the UAE or run premises here. It can keep a UAE bank account, appoint local advisers and hold shares in other companies, and some registries have arrangements for property ownership. For local trading you need a mainland or free zone licence.
Can I get a residence visa through an offshore company?
No. Offshore companies do not sponsor residence visas for owners or staff. If you need to live in the UAE, a free zone or mainland company is the right vehicle, or you may qualify for residence on other grounds, such as the Golden Visa.
Is a UAE offshore company tax free?
Do not assume so. An offshore company is a legal person registered in the UAE, and federal corporate tax applies at 9% on taxable income above AED 375,000. How the rules apply depends on what the company earns and where it is managed, so take tax advice before you set up.
What is the difference between an offshore and a free zone company?
A free zone company has a trade licence, can lease an office in its zone, can hire staff and can sponsor visas. An offshore company has none of these. It exists to own assets and contract internationally, with a registered agent's office as its address.
Do I need a registered agent?
Yes for the main registries. They accept applications only from registered agents they have approved, and the agent provides the registered address. Caliph prepares your documents and coordinates the filing with an approved agent, so you still deal with one consultant.
- Jebel Ali Free Zone (JAFZA): how to set up an offshore company
- RAK International Corporate Centre (RAK ICC)
- Ajman Free Zone
Reviewed by Caliph Business Solutions on . Rules differ by activity and by authority. Your Caliph consultant confirms what applies to you.
Ready to establish your company in the UAE?
Book a free consultation. Tell us what you want to open and we come back with the route, the documents and the cost.
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