Dubai has evolved into a prime international business hub that attracts traders and marketers from all around the globe. One of the most popular business structures in Dubai is an offshore company, which offers tax advantages, confidentiality, and ease of management. However, understanding the cost of offshore company set up in dubai is crucial before making a decision. In this blog post, we will break down the costs involved and what you can expect when setting up your offshore business.
What Is an Offshore Company in Dubai?
An offshore company in Dubai is a business entity registered in a free zone that allows international operations. These companies are mainly used for holding assets, international trade, or as a subsidiary for a parent company. Offshore companies in Dubai are not allowed to conduct business within the UAE market but can operate globally.
Factors Affecting the Cost of Offshore Company Formation
Several factors influence the total cost of setting up an offshore company in Dubai. These include:
- Registration Fees
- The initial registration cost for an offshore company varies depending on the chosen free zone.
- Jebel Ali Free Zone (JAFZA), Ras Al Khaimah International Corporate Centre (RAK ICC), and Ajman Offshore are the three main jurisdictions offering offshore company formation in the UAE.
- Registration fees typically range between $1,500 and $4,000.
- Government and Licensing Fees
- Every offshore company must obtain a business license, which comes with annual renewal costs.
- Government fees for offshore companies in Dubai range from $1,000 to $3,000 per year, depending on the jurisdiction.
- Registered Agent Fees
- Offshore companies in Dubai must appoint a registered agent to handle legal documentation and compliance requirements.
- The fees for a registered agent typically range from $1,000 to $2,500 per year.
- Office and Virtual Address Services
- While offshore companies do not require a physical office in Dubai, they need a registered address.
- Virtual office services cost around $300 to $1,000 per year, depending on the provider.
- Bank Account Opening Costs
- Setting up a corporate bank account for your offshore company involves administrative fees, which range between $500 and $1,500.
- Legal and Documentation Fees
- Legal documentation, notarization, and drafting Memorandum & Articles of Association (MOA) are necessary.
- These costs range from $500 to $2,000.
- Miscellaneous Costs
- Additional services like accounting, compliance, and nominee director services may add to the total cost.
- Expect to pay $500 to $3,000 depending on your specific business requirements.
Total Estimated Cost
The overall cost of setting up an offshore company in Dubai can range between $5,000 and $12,000, depending on the jurisdiction, additional services, and complexity of the business setup.
Conclusion
Offshore company formation in Dubai offers numerous advantages, including tax benefits, asset protection, and ease of doing international business. However, understanding the cost structure is essential before proceeding. It’s always advisable to consult a business setup expert to get tailored advice and ensure compliance with local regulations. If you’re looking to establish an offshore company in Dubai, make sure to budget accordingly and choose the right free zone that aligns with your business goals. With the right guidance, setting up an offshore entity can be a seamless and rewarding process.
Frequently Ask Questions
Q. How to start an offshore company in Dubai?
A. Choose a registered agent, select a jurisdiction (JAFZA, RAK ICC), submit required documents, and register with the relevant authority for approval.
Q. How much does it cost to form an offshore company in Dubai?
A. The cost varies but typically starts from AED 10,000 to AED 15,000, depending on the offshore jurisdiction and additional services required.
Q. Does Dubai have an offshore company?
A. Yes, Dubai offers offshore company formation through Jebel Ali Free Zone Authority (JAFZA), ideal for international business and asset protection.
Q. Which is the cheapest offshore company formation in UAE?
A. RAK ICC (Ras Al Khaimah International Corporate Centre) offers the most cost-effective offshore company setup in the UAE.
Q. Which is the cheapest free zone in UAE?
A. Sharjah Media City (SHAMS) and Ajman Free Zone are among the most affordable free zones, with business licenses starting from AED 5,750.
Q. Which country is the easiest to open an offshore company?
A. UAE, Seychelles, Belize, and the Cayman Islands offer easy offshore company setup with minimal requirements and tax advantages.
