Offshore Company Formation

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Offshore Company Setup In Dubai

An offshore company formation is actually to establish a company outside the country of domicile of the shareholders. However, it does not work the same in UAE/Dubai. In Dubai/UAE, a foreign entrepreneur can start a business in three different jurisdictions, Mainland, Free Zone, and Offshore.

In the Mainland, there are 7 Jurisdictions (Dubai/Abu Dhabi/Sharjah/Ajman/Umm Al Quwain/Ras Al Khaimah/Fujairah). There are more than 50 Free Zone jurisdictions and 3 Offshore jurisdictions in the UAE.

All three jurisdictions work differently for company formation in Dubai & UAE. The main difference is with the shareholding patterns and the kind of business activities allowed.

If one wants to do business in the local market directly, in the respective Emirates, then Mainland company is a suitable option. In Mainland, you will have to partner 51% with a UAE national hence you will hold 49% shares in the limited liability company (LLC).

If one wants to use Dubai or other Emirates as a HUB because of its ideal location and world-class infrastructure, moreover, to get 100% ownership and connectivity, then the formation of a Free Zone company will be the suitable option.

If one wants to do International Business with favorable rules, Infrastructure, location, and hold Real Estate. Furthermore, to protect the Trademark in UAE and worldwide under a company 100% owned by an emigrant, the formation of an Offshore company is a suitable option.

One of the main differences between Offshore and other forms of companies is the possibility of getting a Residency Visa and doing business locally.


In Dubai, RED BERRY can assist in an Offshore company formation under JAFZA (Jebel Ali Free Zone Authority). JAFZA is the first Offshore jurisdiction set up in the UAE. Also, it is among the most reputed worldwide and the local Banks.

In an Offshore company formation in Jebel Ali, you need to have one shareholder, one Director, and one secretary. There is a possibility that a Shareholder take all the roles with share capital as low as AED 1 (One Dirham)

JAFZA Offshore company can do the following activities in Dubai /UAE –

  • Hold a rental space as a registered office in any designated freehold area in the UAE approved by the Authority.
  • Own a property in one of the designated freehold areas in the United Arab Emirates.
  • Own a stake in another operating Company within the United Arab Emirates.
  • Also, Hold Trademark and logo.
  • Furthermore, Hold an account in a bank in the United Arab Emirates.

JAFZA Offshore company can NOT do the following activities in Dubai /UAE –

  • Directly carry out any commercial activity in the United Arab Emirates.
  • Carry out banking business.
  • Carry out any insurance or reinsurance, insurance agent, or insurance broker-type business.
  • Moreover, Start any other unallowed employment by the Authority.
  • Carry out any of the above-mentioned restrictions outside the United Arab Emirates

Bearer Shares are not allowed in JAFZA Offshore but JAFZA Offshore Company may, subject to the consent of the Registrar, create different classes of shares, by providing the different classes of shares in its articles of association.

So, if you are a foreigner and interested in an Offshore Company formation Dubai/UAE, you can avail the best services by approaching RED BERRY. We make the whole process of Offshore company formation, or any other like free zone business setup Dubai, easy and well applicable.




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