Definition
An offshore company is a legal entity incorporated in a jurisdiction other than the one in which its beneficial owners reside or its principal business activities take place. Offshore structures are used for asset protection, international trade facilitation, intellectual property holding, and estate planning. They typically benefit from minimal taxation and simplified reporting, though global transparency standards increasingly require beneficial ownership disclosure.
UAE Context
The UAE permits offshore company formation through JAFZA Offshore (Jebel Ali) and RAK International Corporate Centre (RAK ICC), among other authorities. UAE offshore entities benefit from zero corporate tax on qualifying income, 100 percent foreign ownership, and the ability to open UAE bank accounts. However, they cannot conduct business within the UAE mainland, lease physical office space outside the registering free zone, or sponsor employee residence visas. All UAE offshore companies must comply with federal anti-money laundering regulations and economic substance requirements.
Key Facts
| Item | Detail |
|---|---|
| Primary jurisdictions | JAFZA Offshore, RAK ICC |
| Permitted activities | Holding companies, international trading, IP holding, asset protection |
| Ownership | 100% foreign ownership |
| Restrictions | No mainland trade, no physical office, no visa sponsorship |
| Compliance | AML, economic substance, beneficial ownership disclosure |
Vision 2031 Relevance
Enhanced transparency and compliance standards under Vision 2031 strengthen the international credibility of UAE offshore formations. Alignment with FATF recommendations and OECD standards ensures that offshore structures serve legitimate international purposes while supporting the UAE’s reputation as a well-regulated financial centre.