Offshore company
Offshore company in Dubai and the UAE: what it can and cannot do
An offshore company is a holding vehicle, not a trading business. It suits a narrow set of jobs well, and it is the wrong choice for most founders who want to work in the UAE.
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Written by Tabish Ahmed, Senior ManagerReviewed by Auj Afreen Ahmad, Founder and Chief Executive OfficerLast updated
The short answer
Can an offshore company in Dubai trade in the UAE?
A UAE offshore company is registered with an offshore registry such as JAFZA Offshore or RAK ICC and formed through a registered agent. It is used to hold shares, intellectual property, investments and, within the rules, property. It cannot trade inside the UAE without separate licences and has no office or visa quota like a free zone licence.
The short answer
What is an offshore company in the UAE?
An offshore company in the UAE is a company incorporated under the regulations of a UAE offshore registry rather than licensed to trade. The main registries are JAFZA Offshore in Dubai and RAK ICC in Ras Al Khaimah, and Ajman Free Zone lists Ajman Offshore. In each case you deal with the registry through a registered agent.
It is a company incorporated under the regulations of a UAE offshore registry rather than licensed to trade. The main registries are JAFZA Offshore in Dubai and RAK ICC in Ras Al Khaimah; Ajman Free Zone also lists an offshore option, Ajman Offshore. In each case you deal with the registry through a registered agent.
People usually search for an offshore company in Dubai when they want a low-maintenance UAE company. If you want to invoice UAE clients, hire staff or live here on the company's visa, you need a mainland or free zone licence instead.
Limits
What can a UAE offshore company do, and what can it not do?
A UAE offshore company can hold shares in other companies, keep its books and hold meetings in the UAE, hold a UAE bank account if a bank accepts it, and own property in designated JAFZA freehold areas. It cannot trade inside the UAE without licences, or receive a visa quota, apart from JAFZA's route for property-owning companies.
What it can do, under JAFZA's Offshore Companies Regulations 2023 and RAK ICC's Business Companies Regulations 2018:
- Hold shares in other companies, including UAE operating companies.
- Keep its books and hold directors' and members' meetings in the UAE.
- Hold a UAE bank account, if a bank accepts it.
- Own property in designated freehold areas (JAFZA), subject to Dubai Land Department registration.
What it cannot do:
- Trade inside the UAE. JAFZA requires licences or permits from the competent authorities before an offshore company does business in the zone or elsewhere; RAK ICC bars activities in the UAE outside its zone without the appropriate UAE licences, and business with persons in the zone unless RAK ICC authorises it.
- Provide financial services by way of business (RAK ICC).
- Lease an operating office or receive a visa quota the way a free zone licence does.
One exception on visas: JAFZA's 2023 regulations let an offshore company that owns property in a designated freehold area apply for residency visas for its members, subject to JAFZA's eligibility requirements. We found no equivalent route for RAK ICC or Ajman Offshore.
Side by side
JAFZA Offshore vs RAK ICC vs Ajman Offshore: what is the difference?
The main differences are formation and visas. JAFZA Offshore forms companies through a registered agent on the Dubai Trade portal in 5 to 7 working days, and property-owning companies may apply for members' visas. RAK ICC forms companies only through its registered agents, with no visa route found. Ajman Offshore has no published offshore regulations or fees.
UAE offshore registries compared on published rules
| Factor | JAFZA Offshore | RAK ICC | Ajman Offshore |
|---|---|---|---|
| Registry | Jebel Ali Free Zone Authority | RAK International Corporate Centre | Ajman Free Zone Authority (offshore registry) |
| How it is formed | Through a JAFZA registered agent, on the Dubai Trade portal; 5 to 7 working days | Only through RAK ICC registered agents | Through a registered agent; confirm with the authority |
| Registered office | In the zone, at owned freehold property, or the registered agent's office in Dubai | At the registered agent's UAE office | Confirm with the authority |
| Trading in the UAE | Only with licences or permits from the competent authorities | Not without the appropriate UAE licences | No |
| Residence visas | No quota; property-owning companies may apply for members' visas | No route found | No |
| Dubai property | Permitted in designated freehold areas | Confirm with Dubai Land Department | Confirm with Dubai Land Department |
| Accounts | Annual accounts examined by auditors | Records and underlying documents must be kept; confirm the period with the registered agent | Confirm with the authority |
Ajman Free Zone's website lists offshore among its licence options and gives an offshore department contact, but we found no published offshore regulations or fees there. Before choosing Ajman Offshore, we confirm in writing that the registry is taking new companies on the terms you need.
Typical uses
What is an offshore company used for in the UAE?
An offshore company is mainly used as a holding company, for intellectual property, for property and for family and succession structures. A holding company lets ownership of operating companies change without touching each licence. JAFZA's regulations allow property ownership in designated freehold areas, but confirm with Dubai Land Department before you sign, especially for other registries.
- Holding company: owning shares in operating companies in the UAE or abroad, so ownership can change without touching each licence.
- Intellectual property: RAK ICC promotes IP holding companies; register the marks themselves too, see trademark registration.
- Property: JAFZA's regulations allow ownership in designated freehold areas. Dubai Land Department's company registration service accepts foreign companies registered in free zones in Dubai or Ras Al Khaimah. Confirm with DLD before you sign, especially for any registry other than JAFZA.
- Family and succession structures: RAK ICC describes its vehicles as supporting wealth preservation and succession planning.
Practicalities
Does a UAE offshore company need a registered agent and a bank account?
It must have a registered agent, and it may hold a UAE bank account if a bank accepts it. JAFZA requires an agent at all times unless the company keeps an office in the zone, and RAK ICC incorporates only through agents. Banks decide on accounts after looking at ownership, source of funds and activity.
A registered agent is required. JAFZA's regulations say an offshore company must have one at all times, unless it keeps an office in the zone, and that applications and documents go through agents only. RAK ICC incorporates only through registered agents. The agent files changes, holds the registered office and is your channel to the registry.
Expect ownership questions from the start. JAFZA asks a corporate shareholder for attested formation documents, a certificate of good standing and an incumbency certificate naming the last beneficiary shareholder.
The regulations allow a UAE bank account. Getting one is a separate question that the bank decides. Banks look at who owns the company, where its money comes from and what it does. A company with no UAE activity should expect detailed questions. See bank account opening.
We do not guarantee bank accounts or visas. Banks and authorities decide, and anyone promising either is telling you something that is not true.
Tax and compliance
Does an offshore company pay corporate tax in the UAE?
Yes, it can. An offshore company is not outside the UAE tax system by default, because the Corporate Tax Law treats a juridical person incorporated under UAE legislation as a Resident Person. Plan for corporate tax registration and filing with advice from a registered tax agent. Economic substance reports were cancelled for financial years ending after 31 December 2022.
An offshore company is not outside the UAE tax system by default. The Corporate Tax Law treats a juridical person incorporated or established under UAE legislation as a Resident Person, and an offshore company is incorporated under a UAE registry's regulations. Plan for corporate tax registration and filing, and take advice from a registered tax agent on how your income is treated.
Economic substance reporting no longer applies for current years. The Ministry of Finance cancelled economic substance notifications and reports for financial years ending after 31 December 2022, while companies remain answerable for earlier years.
Records still matter. RAK ICC's regulations require records and underlying documents to be kept (confirm the retention period with your registered agent), and JAFZA's regulations provide for annual accounts examined by auditors.
Published fees
How much does an offshore company cost in the UAE?
Published registry fees start at AED 10,000 for JAFZA offshore company registration and AED 3,250 for a one-year RAK ICC International Business Company, renewed at AED 3,950 for one year under its schedule effective 1 January 2026. JAFZA renewal fees, registered agents' charges and Ajman Offshore fees are not published and are quoted on request.
| Fee | AED | Charged by | Source |
|---|---|---|---|
| Offshore company registration | 10,000 | Authority | jafza.ae |
| Specimen signature (each) | 50 | Authority | jafza.ae |
Figures from the authority’s own fee page, last checked 17 October 2026. Some exclude VAT. This is not the whole cost: visas, office, our fee and any approvals are separate. Lines older than 90 days drop off until re-checked.
| Item | Fee | Notes |
|---|---|---|
| JAFZA: offshore company registration | AED 10,000 | Listed by JAFZA |
| JAFZA: specimen signatures | AED 50 each | Listed by JAFZA |
| JAFZA: renewal | Not published | Quoted on request |
| JAFZA: registered agent fees | Not published | Quoted on request |
| RAK ICC: International Business Company (IBC) incorporation | AED 3,250 | For one year |
| RAK ICC: IBC renewal | AED 3,950 | For one year |
| RAK ICC: registered agents' own charges | Not published | Quoted on request |
| Ajman Offshore | Not published | Quoted on request |
The RAK ICC figures come from its fee schedule, effective 1 January 2026, which does not state VAT treatment.
For how this compares with a trading licence, see business setup cost in Dubai.
Honest fit
When is an offshore company the wrong choice?
An offshore company is the wrong choice if you will invoice customers in the UAE, need residence visas through the company outside JAFZA's property route, need an office, warehouse or trade licence, or want a company mainly to avoid tax. If two of these apply, a free zone company, possibly with an offshore holding company above it, usually fits better.
- You will invoice customers in the UAE: you need a mainland or free zone company.
- You need residence visas for yourself, family or staff through the company, outside JAFZA's property route.
- You need an office, a warehouse or a trade licence to show suppliers.
- You want a company mainly to avoid tax: offshore companies are within the UAE corporate tax rules.
If two of these apply, a free zone company, possibly with an offshore holding company above it, is usually the better conversation to have.
Questions
Offshore company in Dubai and the UAE: common questions
Anything else? Ask on WhatsApp and the person who handles it will answer.
Can an offshore company trade in the UAE?
Not on its own registration. JAFZA's offshore regulations require licences or permits from the competent authorities before an offshore company does business in the zone or elsewhere, and RAK ICC's regulations bar activities in the UAE outside its zone without the appropriate UAE licences. To invoice UAE customers you need a mainland or free zone licence.
Can I get a UAE residence visa through an offshore company?
Generally no; offshore companies have no visa quota. The exception is JAFZA: its 2023 regulations let an offshore company that owns property in a designated freehold area apply for residency visas for its members, subject to JAFZA's eligibility rules. We found no equivalent route at RAK ICC or Ajman Offshore.
Can an offshore company own property in Dubai?
JAFZA's 2023 offshore regulations allow ownership of property in designated freehold areas. Dubai Land Department's company registration service accepts foreign companies registered in free zones in Dubai or Ras Al Khaimah. Registration still goes through DLD, so confirm eligibility and documents with DLD before signing a purchase.
Do offshore companies pay corporate tax in the UAE?
They are not automatically outside it. The Corporate Tax Law treats juridical persons incorporated or established under UAE legislation as Resident Persons, and offshore companies are incorporated under UAE registries' regulations. Register and take advice from a registered tax agent on how your income is treated; do not assume 0%.
Do I need a registered agent for an offshore company?
Yes. JAFZA requires every offshore company to have a registered agent at all times, unless it keeps an office in the zone, and accepts applications only through agents. RAK ICC incorporates companies only through its registered agents. The agent keeps the registered office and files changes with the registry.
Can an offshore company open a bank account in the UAE?
The regulations allow it, but the bank decides. Banks review ownership, source of funds and what the company does, and a company with no UAE activity should expect detailed questions. We prepare a complete file; we cannot guarantee the outcome.
How long does it take to register a JAFZA offshore company?
JAFZA states a processing time of 5 to 7 working days once the registered agent submits a complete application on the Dubai Trade portal. Corporate shareholders need their documents notarised and attested by the UAE Embassy first, so allow time for that before the application.
Sources
Where these facts come from
The official pages we checked. Rules and fees change; we confirm the current position before we advise you.
- Registered agents only, documents, AED 10,000 registration, AED 50 specimen signature, 5 to 7 working days — Jebel Ali Free Zone: jafza.aeChecked 3 November 2026
- Permitted activities, UAE bank account, freehold property, licences needed for business, members' residency visas for property-owning companies, registered office and agent, audited accounts — Jebel Ali Free Zone Offshore Companies Regulations 2023: jafza.aeChecked 3 November 2026
- No business in the zone without authorisation, no financial services, no UAE activities outside the zone without licences, registered agent at all times — RAK ICC Business Companies Regulations 2018: rakicc.comChecked 3 November 2026
- Incorporation only through registered agents — RAK ICC FAQs: rakicc.comChecked 3 November 2026
- IBC incorporation AED 3,250 (1 year) and renewal AED 3,950 (1 year), effective 1 January 2026 — RAK ICC Fee Schedule 2026: rakicc.comChecked 3 November 2026
- Holding companies, real estate holding and bank account — RAK ICC: rakicc.comChecked 3 November 2026
- IP holding companies — RAK ICC: rakicc.comChecked 3 November 2026
- Ajman Free Zone company types: FZE, FZC and branches — Ajman Free Zone: afz.gov.aeChecked 3 November 2026
- Foreign companies registered in free zones in Dubai or Ras Al Khaimah may register to own property — Dubai Land Department: dubailand.gov.aeChecked 3 November 2026
- Resident Person includes juridical persons incorporated under UAE legislation (Article 11) — Federal Decree-Law No. 47 of 2022, Ministry of Finance: mof.gov.aeChecked 3 November 2026
- Economic substance reporting cancelled for financial years ending after 31 December 2022 — Ministry of Finance: mof.gov.aeChecked 3 November 2026
- Offshore listed among AFZ licence types; offshore department contact — Ajman Free Zone FAQs: afz.gov.aeChecked 3 November 2026
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