Dioptra News

General Blog

Business

Jurisdictions That Allow You to Develop Offshore Companies in UAE 

Offshore companies in the UAE are becoming a more popular choice for entrepreneurs all around the world. At its base, it can be credited to the lenient laws and regulations of UAE for start-ups, but that is not where it ends. The several corporate and personal tax concessions, along with the ease of setting up a business there, make UAE the perfect place for starting your new offshore business. 

Along with the leniencies, there are a few intricacies of setting up offshore companies in UAE as well. From submitting the correct documents with the application to choosing the right name for your company, you have to be very attentive throughout the process. However, all of that is after you have decided on the preliminary steps, which include choosing the jurisdiction. 

There are three main jurisdictions under which you can set up your offshore business. Each of these jurisdictions offers certain benefits to specific sectors of the industry. How successful your business is, mainly depends on the jurisdiction you select to set up your offshore business. If you are not well-versed with that, this article is a must-read. You will find all three jurisdictions and their characteristics explained in detail below.  

RAK International Corporate Centre (RAK ICC)

Better known as the Ras Al Khaimah centre, this is one of the fastest-growing emirates and is located at a half an hour drive from the UAE mainland. Launched in the year 2006, this was a government initiative of making a corporate registry for offshore companies. In its earlier years, it allowed other International Business Companies to start in the UAE. These are some reasons why it is regarded as the best.

  • You do not need any local shareholding.
  • You can buy local UAE company shares.
  • Allowance of international transactions and multi-currency bank accounts.
  • No requirement for filing the annual audit report.
  • Offshore companies get incorporated within a week of application.

Jebel Ali Free Zone (JAFZA)

Another significant trading hub in UAE, this location is an hour’s drive from Abu Dhabi. This was the first free zone in the UAE. A company here will have mostly the same features as RAK Offshore Company. However, some of the differences of this jurisdiction include:

  • Company incorporation is costlier than in RAK ICC.
  • Shareholders have to be physically present for completion of company incorporation
  • An annual audit report has to be filed. 
  • Company incorporation requires at least one shareholder, two directors and one secretary. 

Ajman Free Zone:

Located in the Ajman emirate in UAE, this zone is famous for its competitive prices. Similar to JAFZA, this free zone also has some of the same features as RAK ICC. However, some incentives that can make this a more preferred choice are:

  • Much more cost-effective.
  • Reasonable operational costs.
  • Any change in the business structure requires less time.
  • Company incorporation requires only one director and one shareholder (the director and shareholder can be the same person).

If understanding which jurisdiction is the best for your offshore companies in UAE gets confusing, you can seek help from professionals like Emirabiz. They can surely help take your business to the next level.