Offshore
Company
For most entrepreneurs, a UAE offshore company is the wrong choice. It cannot do business in the UAE, sponsor a visa or use tax treaties, and it is taxed like any other UAE company. What most people need is a Free Zone company.
Six reasons offshore rarely works
No residence visa
An offshore company cannot sponsor visas, so it gives you no right to live in the UAE.
No business in the UAE
It holds no trade licence, cannot serve UAE clients, lease an office or hire staff.
Not tax-free
It must register for UAE corporate tax and is taxed on its worldwide income at 9% above AED 375,000. Late registration costs AED 10,000.
No tax treaties
For treaty purposes it is not a UAE resident, and the FTA does not issue it a Tax Residency Certificate.
Hard to bank
UAE banks apply strict KYC to offshore structures. Layered ownership chains are practically unbankable.
Risk at home
Run from your home country, it can be taxed there as a resident, and CFC rules can attribute its income to you.
What we bring to every client
Why clients trust us
What people asking for offshore actually need
- Initial consultation with Expert
- Trade licence issuance
- All government and our fees included
- 1 partner/employee residence visa and Emirates ID
- Corporate bank account opening assistance
- Accounting and Tax compliance - starting from 400 USD monthly
- VAT Registration and VAT Return
- Corporate Tax Registration and Annual Corporate Tax Submission
- Transfer-pricing Documentation (Master and Local file)
- Tax residency (company) certificate issuance
An offshore company is not tax-free
Resident for corporate tax, not for treaties
An offshore company incorporated in the UAE is a resident person for UAE corporate tax, but not for tax treaties. That is the worst of both.
- Mandatory registration - It must register with the Federal Tax Authority, whether or not it owes any tax.
Late registration carries a fixed penalty of AED 10,000. - Worldwide income taxed - Its income is taxed at 9% above AED 375,000.
Dividends and gains from qualifying shareholdings can be exempt. - No treaty relief, no 0% rate - Without a Tax Residency Certificate it cannot claim treaty relief abroad,
and it has no 0% rate on qualifying income, which a Qualifying Free Zone Person can have.
The narrow case where offshore fits
Passive holding
Property in Dubai
Asset protection and succession
Check before you start
Offshore or Free Zone? Three questions decide it
Will anyone live or work in the UAE?
Will the company invoice, trade or need a licence?
Is its only purpose to hold assets?
Direction to success
Setting up your company in the UAE is easy with our guidance to the right jurisdiction
Mainland Company
Unleash the full potential of the UAE's flourishing market, giving you complete access to both local and international markets.
- Full market access - Operate freely in both UAE and global markets, including GCC countries
- Tax position - 0% corporate tax on taxable profit up to AED 375,000, 9% above, plus access to tax treaties
- Government & real estate opportunities - Participate in government tenders and own freehold property in the UAE
Free Zone Company
Harness the power of a Free Zone company to expand your reach across global markets. Ideal for businesses looking to maximize international exposure.
- 0% Taxation - Free zones offer 0% corporate tax for eligible businesses. Many free zones offer customs duty exemptions on imports and exports, boosting your earnings.
- Simplified business setup - Free zones offer a straightforward and quick incorporation process.
- Repatriation of profits - Investors get 100% profit and capital repatriation, ensuring control.
Offshore Company
A narrow tool for passive holding of shares, property and family assets. For trading, visas and life in the UAE, a Free Zone company is the better fit.
- Passive holding - Suited to holding shares, Dubai property and family assets, not to trading
- No visas, no operations - It cannot sponsor residence visas, rent an office or trade in the UAE
- Taxed as a resident - Subject to UAE corporate tax on worldwide income, without access to tax treaties
FAQ
It depends on the jurisdiction and office arrangement. Free zone packages typically include an allocation of 1 to 6 visas, expandable with larger office space. Mainland companies can sponsor visas in proportion to their physical office size. We size the license and office to your planned headcount from the start.
For a standard setup with individual shareholders: passport copies, proof of address, and details of the intended business activity. Regulated activities or corporate shareholders require additional documents, such as attested corporate resolutions and constitutional documents. We provide a precise checklist once the structure is confirmed.
Yes. The incorporation itself can be completed remotely by power of attorney in most free zones and on the mainland. A personal visit becomes necessary at the residence visa stage, for the medical test and biometrics, and for most traditional bank account openings. A typical setup requires one trip of 3 to 5 working days, which we schedule and manage for you.
A mainland company can trade anywhere in the UAE and bid for government contracts. A free zone company offers 100% foreign ownership, simpler setup and 0% corporate tax on qualifying income, but limited access to the mainland market. An offshore company is a holding and asset-protection vehicle that cannot do business inside the UAE. The right choice depends on where your customers are and how the structure interacts with taxation in your home country.
Yes, it can. An offshore company incorporated in the UAE is a resident person for corporate tax and must register with the Federal Tax Authority. It is taxed on its worldwide income at 9% above AED 375,000, although dividends and gains from qualifying shareholdings can be exempt. For tax treaties it is not a UAE resident, so it cannot obtain a tax residency certificate or claim treaty relief. Its position in the owners' home country also matters, including CFC and place of effective management rules.
A free zone company cannot trade directly in the UAE mainland market. To serve mainland customers it can appoint a locally licensed distributor, open a mainland branch, or in some cases obtain a dual license where the free zone offers one. If your revenue will come mainly from UAE customers, a mainland company is usually the more practical structure.
The total depends on the licensed activity and office requirements. A complete mainland setup with INCORPORTAS, including the trade license, Memorandum of Association, one residence visa and corporate bank account opening assistance, starts from USD 14,500 with all government and service fees included.
