Dubai Offshore Company

A Dubai Offshore Company is a reasonable choice to benefit from the stable economy, tax exemption and excellent banking facilities, as well as the favourable regulatory framework of the United Arab Emirates. The UAE comprises of a federation of seven emirates: Dubai, Abu Dhabi, Sharjah, Fujairah, Ras Al Khaimah, Umm Al-Quwain and Ajman. Although the whole country offers the ideal environment for your offshore business, GWS Middle East is convinced that Ras Al Khaimah offers significant advantages.


Ras Al Khaimah (RAK) Formation and Dubai Offshore company comparison

  • A RAK company requires only 1 shareholder
  • No personal attendance required for the formation
  • Significantly lower formation fees
  • Both, a RAK offshore company and a Dubai offshore company are exempted from all corporate and income tax (including VAT)

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  • Dubai requires a minimum of two shareholders
  • The shareholders’ physical presence is required in Dubai for the formation
  • Auditing is essential for a Dubai offshore company
  • Cost of Dubai formation is significantlyhigher


An important aspect for foreign investors and global companies is the use of a UAE Free Trade Zone (FTZ) in establishing a UAE presence. Benefits of the double tax treaties will also apply to free zone entities established by foreign investors.



Dubai Offshore Company – FAQs

In addition to the quick, unbureaucratic incorporation, all companies in Dubai are tax-free. Only a VAT of 5% is incurred domestically. In addition to the tax advantages, the quick incorporation of the company, the modern legal system, geographical location, positive image of Dubai and availability of offices, operating spaces and employees count among the jurisdiction’s advantages.

Companies in Dubai and all the Emirates are tax-free. A 5% VAT applies to businesses and services within the UAE, which makes the UAE one of the most tax-friendly countries.

Zero %. The UAE does not levy taxes on corporate profits domestically and abroad, which is why Dubai is a zero-tax jurisdiction.

Yes, Dubai boast a very modern corporate law and is very business-friendly. The company can be founded as a mainland company, freezone company or international company.

Dubai is considered an investor's heaven. With complete tax exemption, simple company incorporation and the availability of qualified, affordable staff, Dubai creates the perfect conditions for a successful business.

Dubai and the UAE in general have numerous so-called “free trade zones”. These enable foreigners to easily incorporate a company and own 100% of the company shares. Freezone companies in Dubai are tax-free.

The United Arab Emirates and, above all, Dubai allows foreigners to set up a company in a simple, unbureaucratic manner and to obtain a residence permit. Companies are incorporated by local, approved agents who take over the entire start-up process and, if necessary, apply for a residence permit.

An LLC is a so-called mainland company, i.e. a regular company. The advantage of the LLC is that it can operate throughout the UAE, but the disadvantage for foreigners is that they can hold a maximum of 49% of the shares. Which is why foreign investors often prefer a freezone company, which allows 100% of the shares to be held by foreigners while also being tax-free.