Home / Company formation / Offshore

UAE Offshore Company Formation: Uses and Limits

An offshore company is an international corporate vehicle. It is not a mainland licence and it is not a free-zone operating licence. It does not, by itself, give you a UAE residence visa, premises, or permission to trade in the UAE.

What it is usually used for

Official material describes these vehicles as structures for international business, holding assets, and owning a stake in another company. RAK ICC describes common uses as a new international entity, holding assets, relocating an international company, or converting an existing entity. JAFZA’s 2023 regulations allow an offshore company to own a stake in another operating company in the UAE, hold designated freehold property, and hold a UAE bank account. Those permissions are not the same as a bank’s decision to open the account.

• Holding shares in overseas or UAE companies, where that ownership is allowed.
• A project or joint-venture vehicle, if the activity is lawful for that registry.
• International investment or trade that does not require a UAE operating licence.

What it does not automatically provide

• A UAE residence visa or immigration status.
• The right to run a shop, office, or local service the way a mainland or free-zone operating company can.
• A bank account. Registration and account approval are separate.
• A tax outcome. That depends on the activity, where decisions are made, and the relevant law. This page does not give a tax opinion.

How it differs from an operating company

The registered agent

RAK ICC incorporates a company only through a registered agent. JAFZA processes offshore registration through a JAFZA registered agent, unless the company maintains an office in the zone. The agent files the application and deals with the registry. AskVi can help you test whether this category fits. The filing itself is done by a registered agent.

Facts to settle first

• Will the company hold shares or other assets, or will it invoice customers?
• Do you need to operate in the UAE, hire locally, or hold a residence visa?
• Do you need a UAE bank account, and in which countries will money move?
• Who are the shareholders and the people who ultimately own or control the company?

Two registries covered here are RAK ICC and JAFZA Offshore. Banking preparation is separate: UAE offshore company bank account. Related reading: choosing a route, holding companies, non-residents, and how Vi works.