Are you also dreaming of starting your own offshore company in the UAE? Starting your own offshore company is one of the smartest ways to conduct international business, all at a very low cost. Not only this, but an offshore business can also protect your assets and help you run operations globally, all with full legal assurance.
There are various types of offshore zones where individuals outside the UAE can easily start their businesses without needing a physical office or employees. This is only possible because the UAE offers strong laws, tax benefits and privacy. Today, this blog will explain how to set up your own offshore company in the UAE at the lowest rates.
What is an Offshore Company in the UAE?
Before knowing anything else, it is important to know what an offshore company.
To put it simply, an offshore company is a business set up in a country for conducting international business. In the UAE, offshore companies are not allowed to do business within the country or rent office space.
But they can:
- Own shares in other UAE companies
- Own copyrights, patents, and trademarks
- Open multi-currency bank accounts
- Trade with international clients
Offshore companies are often utilised for tax planning, privacy, and asset holding.
Key Advantages of Offshore Company Formation in the UAE
Starting an offshore company in the UAE comes with many benefits, such as:
- 100% foreign ownership
- No corporate or personal taxes
- No need for an office
- Very little paperwork or compliance
- You can take back all profits and capital.
- The owner’s name stays private.
- Low setup and renewal fees
- You can open UAE bank accounts.
This setup is perfect for consultants, trading companies, businesses holding assets or property, and those managing intellectual property (like brands or trademarks).
Best and Cheapest Offshore Jurisdictions in the UAE
There are 3 main offshore zones in the UAE. Each has different costs and rules. Let’s look at each:
1. JAFZA Offshore (Jebel Ali Free Zone Authority)
JAFZA, based in Dubai, is one of the oldest and most trusted offshore zones.
Key Features:
- Managed by the Jebel Ali Free Zone Authority
- Needs a local registered agent
- Can own property in certain parts of Dubai
- Can hold shares in UAE or foreign companies
Estimated Cost:
- Setup: AED 18,000 – AED 22,000
- Renewal: AED 11,000 – AED 13,000
Pros:
- Great reputation
- Can own property in Dubai
- Bank account setup is easy
Cons:
- More expensive than others
2. RAK ICC (Ras Al Khaimah International Corporate Centre)
RAK ICC is the cheapest offshore zone in the UAE. It’s ideal for entrepreneurs who want to save money.
Key Features:
- No need to submit audits or financial reports
- No capital deposit required
- Owner details are kept private.
- Can own property in Dubai and Ras Al Khaimah through agreements
Estimated Cost:
- Setup: AED 7,000 – AED 9,500
- Renewal: AED 5,000 – AED 7,000
Pros:
- Lowest cost
- Quick and simple process (3–5 days)
Cons:
- Less well-known than JAFZA
- Can’t rent an office or hire UAE employees
3. Ajman Offshore (Ajman Free Zone)
Ajman Offshore is another affordable option with fewer paperwork requirements.
Key Features:
- No need to rent an office
- Can open UAE bank accounts
- Can hold shares in UAE mainland companies
Estimated Cost:
- Setup: AED 9,000 – AED 11,000
- Renewal: AED 6,000 – AED 7,500
Pros:
- Budget-friendly
- Simple process
- Less paperwork
Cons:
- Less recognized internationally
- Limited property rights
Cost Comparison: UAE Offshore Jurisdictions
| Offshore Jurisdiction | Initial Setup Cost | Renewal Cost | Property Ownership | Reputation Level | Best For |
| RAK ICC | AED 7,000 – 9,500 | AED 5,000 – 7,000 | Yes (via MoU) | Medium | Cost-saving entrepreneurs |
| Ajman Offshore | AED 9,000 – 11,000 | AED 6,000 – 7,500 | Limited | Medium | Holding companies |
| JAFZA Offshore | AED 18,000 – 22,000 | AED 11,000 – 13,000 | Yes | High | Investors needing brand value |
The RAK ICC is the most cost-effective and efficient option, ideal for startups and solo founders.
Who Should Consider Offshore Company Formation?
Offshore companies in the UAE are best for people or businesses that:
- Want to do global business from a tax-free base
- Want to keep investments under a legal structure.
- Need privacy and fewer rules.
- Want to protect assets at a low cost.
- Don’t plan to do business inside the UAE
Common industries include:
- Online businesses (e-commerce)
- Global trading
- Real estate holding
- Wealth and asset management
- Trademark or patent owners
- Consulting firms
Legal Requirements for Offshore Company Formation
Even though it’s simple, you must follow some rules:
- At least 1 shareholder and 1 director
- You need a local registered agent.
- Copy of your passport
- Address proof (like a utility bill or bank statement)
- CV (for some offshore zones)
- Description of your business
XYZ, as your business consultant, can assist with document preparation, filing, and ensuring legal compliance.
Step-by-Step Process for Setting Up the Cheapest Offshore Company in the UAE
Starting an offshore company in the UAE is easy, especially in RAK ICC or Ajman Offshore.
Here are the steps:
Step 1: Select the Offshore Jurisdiction
- RAK ICC (cheapest)
- JAFZA Offshore
- Ajman Offshore
RAK ICC is usually the best option for saving money.
Step 2: Appoint a Registered Agent
You must work through a licensed agent. They will help with:
- Booking your company name
- Collecting and submitting documents
- Talking to the offshore authority
- Getting your company documents
Step 3: Reserve the Company Name
Choose a company name that:
- Is unique
- Matches your business activity
- Doesn’t use restricted words (like “Bank”, “Insurance”, etc.)
Once approved, your name is reserved.
Step 4: Prepare the Required Documents
For individual shareholders:
- Passport copy
- Utility bill or bank statement
- CV or business profile
- KYC (Know Your Customer) form
- Three name choices
- Details about your business
For companies, additional documents such as registration certificates and board resolutions are required.
Step 5: Draft Incorporation Documents
Two important papers are:
- MOA (Memorandum of Association): This document outlines your business goals and shares.
- Articles of Association (AOA): The rules governing the company’s operation.
Your agent helps prepare and submit these documents.
Step 6: Submit the Application
Submit the full application with:
- All required forms and documents
- Payment of fees
Approval usually takes 3–7 working days.
Step 7: Receive Certificate and Company Papers
Once approved, you’ll get:
- Certificate of Incorporation
- MOA and AOA
- Share Certificate
- Director and Shareholder list
This means your company is legally ready.
Step 8: Open a Corporate Bank Account
After setting up your company, open a multi-currency bank account in the UAE or abroad.
You’ll need:
- Company certificate
- MOA and AOA
- Passport copies
- Address proof
- Business plan
- Bank reference letters (sometimes)
Bank approval depends on their own checks.
Step 9: Ensure Annual Renewal and Compliance
To keep your company active:
- Renew your license every year
- Keep your records updated.
- Report any changes
You don’t need to file audits, pay taxes, or have an office.
Why Work with a Business Consultant?
Although the process is simple, a consultant like XYZ makes it easier and risk-free.
Services provided:
- Help choosing the right offshore zone
- Company name registration
- Handling all documents and KYC
- Preparing MOA and AOA
- Support for bank account opening
- Annual renewal help
- Acting as your registered agent
XYZ helps you avoid mistakes, saves time, and ensures everything is done legally and affordably.
Conclusion
Ajman Offshore is one of the most affordable and strategic options for global entrepreneurs, consultants, and investors looking to establish a company in the UAE.
With full foreign ownership, no taxes, low paperwork, and access to bank services—it’s a great way to set up your international business.
At XYZ, we handle everything from documents to setup and support you after the company is formed. We keep things simple, fast, and affordable.
Contact XYZ today for a complimentary consultation and discover how straightforward it is to establish your offshore company in the UAE.