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  • November 7, 2021
  • 11:00 AM
  • UAE

There are a lot of advantages to setting up an offshore company in the UAE. For example, it’s easier to expand into an international market and enjoy access to international funding. It also enables business-owners to keep their assets separate from their operating entities.

The two main jurisdictions for offshore company formation are JAFZA and RAK (Jebel Ali Free Zone and Ras al Khaimah). Here’s more information about both, to help you identify which is right for you.

 

Setting up an offshore business in RAK

If you’re considering establishing an offshore company in Ras al Khaimah, it’s useful to know the following:

  • RAK offshore companies can be used for pretty much anything
  • The International Company structure was launched in 2006 – enabling company owners to set up as an offshore enterprise
  • It’s considered a cost-effective option – it’s 25% to 50% cheaper than the UAE average to do business in RAK
  • It’s just an hour’s drive from Dubai

 

Checklist of requirements for RAK

To set up an offshore company in RAK, you’ll need:

  • A minimum of one shareholder, one director and one secretary note, the director is permitted to operate as the secretary if preferred
  • A certified copy of your passport, original utility bill (less than 3 months old) and Curriculum vitae

 

The advantages of having an offshore company in RAK

  • You can operate confidentially, as the names of all shareholders and directors are not publicly available
  • You’ll benefit from 100% foreign ownership – you don’t need a local shareholder
  • You’re permitted to hold shares in onshore and free zone companies too
  • You’ll have access to a local bank account
  • It’s swift and easy to get incorporated – it usually takes around a week to register an offshore company

 

Setting up an offshore business in JAFZA

The UAE’s other main offshore jurisdiction is JAFZA. Here’s some key information you should know about it:

  • JAFZA was established in 1985, and introduced the Offshore Company in 2003
  • It’s situated close to Dubai, and it takes about an hour to drive to Abu Dhabi
  • It offers access to one of the world’s largest shipping ports, and Al Maktoum International Airport

 

Checklist of requirements for JAFZA

To set up an offshore company here, the requirements are slightly different. You’ll need:

  • A minimum of one shareholder, but two directors – a secretary is required too, and again, one of the directors may take on this role
  • A certified copy of your passport, original utility bill (less than 3 months old) and Curriculum vitae

 

The advantages of having an offshore company in JAFZA

  • JAFZA companies can hold real estate is Dubai
  • You’ll benefit from 100% foreign ownership
  • Like RAK, you’re also permitted to hold shares in onshore and free zone businesses
  • You can operate with confidentiality, as you don’t have to disclose the names of shareholders or directors
  • You can also open a local bank account
  • Although it’s not as quick to register the company in JAFZA as RAK, the process is still swift – around four weeks in total

 

If you’re thinking of starting an offshore company here, get in touch with PROFIKUO Consultancy today. We’re here to help you register and establish your business, and to provide any advice and support that you might need.