UAE Offshore Companies and UAE Free Zone Companies are not the same thing. A legal business entity known as an "Offshore Company" is one that was formed with the goal of conducting business somewhere other than its registered jurisdiction or the place of its ultimate ownership.
Ras Al Khaimah (RAK) and the Jebel Ali Free Zone (JAFZA) are the two main jurisdictions in the UAE that provide offshore companies. Both of these "tax free" nations allow 100 percent foreign ownership and have no corporation or income taxes. Over 40 additional nations and the United Arab Emirates have double tax treaty arrangements. In the UAE, offshore companies are allowed to create multi-currency accounts and conduct worldwide commerce.
However, they are not permitted to conduct business with UAE citizens or have physical locations there. Both RAK and JAFZA offer unique advantages. Although JAFZA is the only offshore company that is legally allowed to acquire property in Dubai, RAK is the more affordable of the two. It is important to distinguish between UAE Offshore Companies and UAE Free Zone Companies. Free Zone Companies are onshore organizations that are allowed, subject to some limitations, to conduct business in Dubai. They allow companies owners, directors, and workers to seek residence in the UAE while still being subject to the same 0% corporation tax rate. Both RAK International Companies (RAK ICs) and JAFZA Offshore Companies MUST designate an authorized registered agent in accordance with local company legislation (Sovereign Corporate Services is approved for this purpose).
In 1985, the JAFZA was established. The Jebel Ali Port, one of the largest shipping ports in the world, is surrounded by an industrial region that gives the foreign businesses headquartered their access to the particular benefits of the free zone. These include 15 years of business tax exemption, no personal income tax, zero import or export taxes, no currency restrictions, and simple labor hiring.
Abu Dhabi, the capital of the United Arab Emirates, is about an hour's drive from Jebel Ali, which is situated just outside of Dubai. Just beyond the port area, Al Maktoum International Airport is being built. It will eventually surpass all other airports worldwide in terms of both freight and passenger volume.
Under the Jebel Ali Free Zone Offshore Companies Regulations 2003, the Jebel Ali Free Zone Authority (JAFZA) and the Dubai Government introduced the Offshore Company.
One of the seven Emirates that make up the UAE, Ras al Khaimah is one of the fastest expanding and is located around an hour's drive from Dubai. In the UAE, RAK has the greatest level of industrialization, with manufacturing accounting for 26% of GDP. Its reputation has been cultivated through a business-friendly investment climate and affordable prices. Because business expenses in RAK are 25 to 50% cheaper than those in the UAE as a whole, firms may increase their return on investment.
The RAK Offshore Company, also known as the International Company structure, was introduced by the Ras al Khaimah administration in September 2006. These are governed under the International Companies Regulations 2006 of the Ras Al Khaimah Free Trade Zone Authority.
The Ajman Free Zone (AFZ), one of the UAE's three main offshore jurisdictions, was established in 1988. By luring a sizable number of enterprises to take advantage of the investment rights, AFZ has stimulated considerable industrial growth in Ajman and strengthened commerce, industry, and the financial sector in the UAE.
The competitive advantages and privileges offered by the Ajman Free Zone enable businesses to significantly increase their return on investment.
As a registered agent, we work closely with the Ajman Free Zone to construct custom offshore companies and may offer offshore company setup services. More than 40 Double Taxation Agreements (DTAAs) are available to the business, and it is also a white-listed independent country for offshore use.