Commonly possible
Holding assets or shares, and serving as a holding company, subject to the rules of the jurisdiction and the bank.
Business setup
Offshore company formation
Offshore company formation from the UAE is typically used for holding and asset-structuring purposes. This page explains what an offshore company can and cannot generally do, and what to check before you form one.
What offshore is for
An offshore company is typically used to hold assets, shares or intellectual property, or to act as a holding company within a larger structure.
It is typically not a route for trading in the local UAE market or for holding a mainland licence. If you need to trade locally, compare the mainland and free zone options.
What it can and cannot do
Commonly not possible
Carrying on business in the local UAE market under that company, or applying for a local trade licence in its name.
Always check
Rules differ by jurisdiction and change over time. Confirm current rules before relying on a structure.
Jurisdictions
Offshore companies are formed under the laws of a particular jurisdiction, and each has its own rules, costs and reporting requirements.
Ongoing requirements
An offshore structure does not remove all obligations. Depending on the jurisdiction and on where owners, directors and banks are located, you may face filing, record-keeping, transparency or tax reporting requirements.
Take professional advice on tax and legal consequences before forming a company, including how the UAE corporate tax regime and the tax rules of other countries may apply.
Process
A typical route. Details vary by jurisdiction.
Step 1: Clarify the purpose
Confirm what the company will hold or do and whether offshore is the right structure.Step 2: Choose the jurisdiction
Compare rules, costs and reporting requirements.Step 3: Provide owner and director information
Identity and address documents are typically requested, along with background checks by the registered agent.Step 4: Incorporate and set up records
After registration, plan how records, filings and banking will be managed.
Questions to ask before forming one
These questions help you decide whether an offshore structure fits your purpose.
What will the company hold?
Assets, shares and intellectual property are handled differently, so be specific.
Where are the owners and directors based?
Location can affect tax and reporting duties in more than one country.
Which bank will you use?
Banks decide for themselves whether to open an account, so ask what they expect.
Who will keep the records and file what is due?
Decide this before you form the company, not after.
Is another country's tax rule relevant?
Take professional advice on tax and legal consequences in each country involved.
Related services
Business setup overview
Compare mainland, free zone and offshore options.
Mainland company formation
For businesses that plan to trade across the UAE market.
Corporate tax
Registration and filing topics, with links to official guidance.
Accounting and tax overview
Bookkeeping, VAT, corporate tax, transfer pricing and audit.
Frequently asked questions
Can an offshore company trade in the UAE?
Typically not in the local market under that company. If you need to trade locally, consider a mainland or free zone company. Confirm the rules for your case.
Does an offshore company avoid tax?
Not automatically. Tax outcomes depend on the jurisdiction, on where the owners and the management are, and on the rules of each country involved. Take tax advice before you form a company.
Can an offshore company open a bank account?
That is decided by each bank and depends on the company, its owners and its activity. Nobody can guarantee an account will be opened.
What ongoing obligations are there?
These vary by jurisdiction and may include annual filings and record-keeping. Ask about them before forming the company.
Thinking about an offshore structure?
Tell us what the company will hold or do and we will discuss whether offshore fits.
Information on this page is general and may change. Requirements are set by the relevant UAE authorities. Contact us for advice on your situation.
This is general information and not legal or tax advice.
Nexoviz is an independent company and is not affiliated with, endorsed by, or acting on behalf of any government authority unless stated.