Looking to safeguard your profits, access global banking, and protect your privacy? An offshore company in Dubai may be your best strategic move.
This guide will walk you through everything you need to know—from what an offshore company is, to why Dubai is a leading destination, to how you can open one successfully.
This guide will walk you through everything you need to know—from what an offshore company is, to why Dubai is a leading destination, to how you can open one successfully.Let’s start with the most basic question:
What is an offshore company in Dubai?
 An offshore company is any company/corporation/firm that is established on one land but operates on another. This is mainly done to avoid taxes on the profits that it is making. The hard-earned profit that businesses can spend on the expansion of the business is excessively taxed which discourages business investment. Not establishing an offshore company in Dubai could be a catastrophic decision for an expanding business.
There are innumerable places to open offshore companies. But incorporating your business in Dubai has its merits. These are 6 irresistible reasons to incorporate your offshore company in Dubai.
- No outrageous corporate taxes.
- Captivating Political stability.
- The financial hub of the world: businesses get close to their trading partners.
- One of the most popular business establishments in Dubai.
- The best system for wealth management, international investment management, and freedom of operations.
- Privacy and anonymity.
Why is DUBAI the most Inspiring place to form an offshore business?
Dubai is named in the same league as Frankfurt, London, Hong Kong, and New York. It provides all the benefits of tax havens without the bitter nuances of other tax havens. It is a place that does not penalize a business that is performing well by taxing its profits.
In Dubai, a business does not generate more sales and profits merely to be doubled-taxed; neither is privacy compromised by publishing corporate reports. In fact, you hardly pay any tax and get known.
It is also the financial hub of the world where business owners get to manage their wealth and investments with ease of setup, anonymity, and privacy. In other words, business owners set up their business in a real tax haven-freeing a deserving investor indulges in profit-making without any guilt.Â
Before a business is established as an offshore company in Dubai, the owner should be clear about the type of businesses that can be incorporated in Dubai.
Common types of businesses that can be established in Dubai
Below is a list of common business types that are commonly formed in Dubai:
- Intellectual property(IP) holding Companies
- Shipping firms
- General trading firms
- Online advertising companies
- Distribution firms
- Logistics firms
- General trading companies
- Professional consulting services
- Different tySpes of brokers
- Real estate holding firms
Common Examples of Offshore Companies:
Holding companies
International trading companies
Investment companies
Software and online businesses
What offshore companies in dubai cannot do?
Given above are the types of businesses that can be registered as offshore companies. But even though these types are legal offshore firms, there are two activities that they cannot perform, given below:
- Trade inside UAE
- Employee people
Businesses that cannot be incorporated as an offshore company in dubai
Given above are the types of businesses that can be registered as offshore companies. But even though these types are legal offshore firms, there are two activities that they cannot perform, given below:
- Trade inside UAE
- Employee people
What Types of Offshore Businesses Are Allowed in Dubai?
Next, we provide a short list of the main types of businesses that cannot be incorporated as offshore businesses;
- Aviation
- Media
- Insurance
Note: Once an application for the offshore company is submitted, all business types go through the Know Your Customer(KYC) check. It is to ensure that the activities performed under a business are legal.
What Types of Offshore Businesses Are Allowed in Dubai?
You can register a wide variety of businesses offshore in Dubai. Common offshore company types include:
Intellectual Property (IP) Holding Firms
Software and IT Companies
Shipping & Logistics Companies
General Trading Firms
Online Advertising Agencies
Real Estate Holding Firms
Financial & Management Consulting
Distribution Companies
Brokerage Firms
Unbelievable benefits of offshore company formation is Dubai
- 100% ownership
- Offshore companies don’t pay
- Corporate tax
- Income tax
- Inheritance tax
- Property tax
- Personal tax
- Bank account
- Companies can open UAE bank accounts and hold multiple currencies.
- International expansion: offshore companies may expand to other countries.
- Stable political, economic and social base.
- UAE offers one of the most stable Socio-political environments where law rules.
- Privacy
- An offshore company cannot be audited.
- The corporate reports cannot be published
- Access to funding
- Being in the financial hub of the world gives business creditworthiness and Good credit ratings to obtain financial funds for its operations abroad.
- Access to solvent foreign banks
- Businesses banned other places
- A business that is banned in other countries can run its office in Dubai.
- Help in IPO( initial public offerings)
- Hold intellectual property and real estate.
These are some of the compelling examples of the benefits an offshore company enjoys.
Step-by-Step: How to Open an Offshore Company in Dubai
Opening an offshore company in Dubai can be straightforward if you follow the correct procedure:
Choose a Business Name (3 options recommended)
Submit an Application with a brief business plan
Prepare Required Documents:
Shareholder passports
Utility bill as proof of address
CV of shareholders
6-month bank statement or bank reference letter
Draft MOA and AOA (Memorandum and Articles of Association)
Open a UAE Bank Account
Pay Setup Fees (approx. AED 12,500)
Documents required to register an offshore company in Dubai
- Business plan (ideal is 3 years but not a must have).
- 6-month Bank statement or original bank reference letter.
- CV of shareholders
- Passport copies of shareholders
- Your address( the one on utility bills will do)
- 3 options for business name complying with business naming rules
- Description of your company operations
Hiring an Offshore Company Formation Agency
The UAE legal system, though transparent, can be difficult to navigate. One small mistake can lead to rejection of your application.
A trusted agency like Capital Plus Auditing ensures:
Hassle-free offshore company setup
Proper documentation & KYC compliance
Fast-track registration & banking setup
