Dubai Company

The RAK International Corporate Centre (RAK ICC) is the offshore company registry of Ras Al Khaimah. Established in 2006 and substantially updated in 2019 and 2022, RAK ICC has become one of the fastest-growing offshore jurisdictions globally. No physical UAE office or presence required. 100% foreign ownership. No UAE corporate tax on income from activities conducted outside the UAE. Shareholder and director details are not publicly disclosed. No minimum paid-up share capital. Formation within three to five business days.

RAK ICC is well suited to international holding, investment management, IP holding, and family wealth structuring where a UAE-credentialed offshore address is desired without the cost and requirements of an active UAE free zone presence. It is the more cost-effective of the two UAE offshore vehicles for clients who do not require the ability to hold Dubai freehold property.

RAK ICC companies cannot conduct business within the UAE — they are exclusively for international activities. They cannot hold a UAE trade licence, sponsor employee visas, or lease commercial premises in the UAE. For clients who need to operate actively within the UAE, a free zone company is required.

Comparing RAK ICC to JAFZA: both are offshore vehicles with similar tax and ownership profiles. The key distinction is that JAFZA offshore companies can hold freehold real estate in designated Dubai freehold areas — RAK ICC cannot. For straightforward international holding without a Dubai property component, RAK ICC is typically faster and more cost-effective. For clients purchasing Dubai freehold property through an offshore structure, JAFZA is the structurally correct vehicle.

The UAE’s 2023 corporate tax and economic substance rules affect how RAK ICC companies are structured. Specialist UAE tax advice is important before proceeding.

The JAFZA Offshore Company is established under the Jebel Ali Free Zone Offshore Companies Regulations 2003. JAFZA — the Jebel Ali Free Zone Authority — is one of the world’s largest free zones, home to over 8,000 companies. The JAFZA offshore company provides a Jebel Ali and Dubai-credentialed offshore address with deep institutional recognition across the UAE banking and business community.

The defining advantage of JAFZA over RAK ICC: a JAFZA offshore company can hold freehold real estate in designated Dubai freehold areas. For international clients purchasing Dubai property — apartments, villas, commercial units in freehold zones — through an offshore holding structure, JAFZA is the structurally correct vehicle. The company holds legal title to the Dubai property, providing estate planning, privacy, and succession benefits alongside the property ownership.

JAFZA offshore companies are administered through JAFZA-registered agents and require at least two directors and one shareholder (who may be the same person). Directors and shareholders may be of any nationality and need not be UAE residents. No physical office in JAFZA is required for an offshore company — this distinguishes it from a JAFZA free zone company, which requires a physical presence.

For clients not purchasing Dubai property: RAK ICC is typically faster and more cost-effective for straightforward international holding. For clients purchasing Dubai freehold property through an offshore structure: JAFZA is the preferred vehicle. For clients with existing relationships in the JAFZA free zone ecosystem, or who specifically want a Jebel Ali address: JAFZA is also appropriate. We advise on the most suitable choice after understanding your specific objectives and asset profile.

Dubai South (formerly Dubai World Central) is a purpose-built free zone and urban district anchored by Al Maktoum International Airport. The Dubai South Free Zone provides business licences for companies in aviation, logistics, e-commerce, light manufacturing, trading, and professional services. 100% foreign ownership. UAE trade licence. UAE residence visa eligibility. Zero corporate tax on qualifying free zone income.

Dubai South is specifically suited to logistics and supply chain businesses benefiting from airport proximity and connectivity to the JAFZA port complex; e-commerce businesses seeking a UAE fulfilment base; aviation and aerospace companies requiring proximity to aviation infrastructure; and trading companies that need a UAE address within the southern Dubai logistics corridor.

Dubai South offers competitive free zone licence pricing relative to DMCC, making it a cost-effective option for businesses with genuine operational reasons to be in the southern Dubai corridor. The free zone authority provides streamlined licensing for its designated activity categories.

For businesses whose activities do not specifically connect to the aviation, logistics, or e-commerce ecosystem of Dubai South, DMCC typically provides broader institutional recognition and more widely accepted credentials with UAE banks and international counterparties. Dubai South is the right choice when the business has genuine operational reasons to be proximate to Al Maktoum Airport — not simply as a lower-cost alternative. We advise honestly on which free zone genuinely fits each client’s business activities.

The Dubai Multi Commodities Centre (DMCC) is consistently ranked the world’s number one free zone — home to over 23,000 companies spanning commodities trading, financial services, technology, logistics, and professional services. A DMCC free zone company provides 100% foreign ownership, a UAE business address in Jumeirah Lakes Towers (central Dubai), eligibility for UAE residence visas, a UAE trade licence, and access to DMCC’s extensive business ecosystem.

The DMCC licence is among the most widely recognised and banking-accepted free zone licences in the UAE. For businesses that need a credible UAE business address, access to UAE banking and payment infrastructure, and the ability to employ staff and operate from central Dubai, DMCC is the benchmark choice.

DMCC licensing categories include trading licences (commodities, general trading, commercial), service licences (professional and business services), industrial licences, and holding licences. Selecting the correct licence category from the outset is important.

Honest cost consideration: DMCC is more expensive to establish and maintain than JAFZA offshore, RAK ICC, or Dubai South. Annual licence renewal, flexi-desk or office space, and visa costs add meaningfully to annual overhead. The UAE’s 2023 corporate tax requires DMCC free zone companies to meet qualifying income conditions to access the 0% rate — income from activities that do not qualify may be subject to 9% tax. DMCC is the right choice for genuine active business operations in Dubai. For holding and investment purposes only, an offshore structure (RAK ICC or JAFZA) is typically more cost-effective.

UAE banks provide some of the best multi-currency account infrastructure of any banking market in the world. Emirates NBD, First Abu Dhabi Bank, Mashreq, ADCB, and others offer accounts in USD, EUR, GBP, AED, and a wide range of other currencies, with strong SWIFT connectivity and access to Middle Eastern, Asian, and European correspondent networks. For businesses and holding companies with clients, investors, or counterparties across the Middle East, South Asia, and Africa, UAE banking provides connectivity that European or Caribbean banks cannot match.

The UAE was placed on the FATF grey list in 2022 and successfully exited in 2024. UAE banks now apply rigorous KYC and due diligence to new corporate accounts — a positive development for the credibility of UAE banking internationally.

Realistic banking expectations: opening a UAE corporate bank account takes four to twelve weeks for most international clients. UAE banks conduct thorough KYC, source of funds analysis, and business purpose assessment. DMCC free zone companies with demonstrable business activity typically find banking easier than offshore holding companies. RAK ICC and JAFZA offshore companies can open UAE accounts but may face additional scrutiny.

We work with UAE and international partner institutions that are actively onboarding UAE entities, and we match clients to the bank best suited to their company profile, beneficial owner nationality, source of funds, and intended account activity. We do not introduce clients to banks where their profile is likely to be declined — a well-matched introduction is worth more than multiple unsuccessful applications.

The UAE introduced Federal Corporate Tax from financial years beginning on or after 1 June 2023. Key rates: 0% on taxable income up to AED 375,000 (approximately USD 102,000); 9% on taxable income above AED 375,000; and a potential 15% global minimum tax for large multinationals subject to Pillar Two rules (revenue above EUR 750 million).

DMCC and Dubai South free zone companies may qualify for a 0% rate on qualifying income if substance and activity requirements are met. Qualifying income includes income from transactions with other free zone persons and from qualifying activities. Non-qualifying income — UAE mainland sources, income not meeting the substance test — is taxed at 9%.

RAK ICC and JAFZA offshore companies managed and controlled outside the UAE — without UAE-resident employees, offices, or management activities — may be treated as non-UAE resident for tax purposes, placing foreign-sourced income outside the UAE corporate tax net. However, the exact treatment depends on each company’s specific facts.

The honest summary: the UAE is no longer a zero-tax environment for all companies. For qualifying free zone companies with genuine substance and qualifying activities, the 0% rate remains available. For offshore companies genuinely managed outside the UAE, foreign-sourced income may fall outside UAE tax. For companies earning UAE-sourced income, 9% applies above the AED 375,000 threshold. Specialist UAE tax advice is essential before establishing any UAE company — we always recommend this.

RAK ICC offshore: no publicly accessible beneficial ownership register. Company name and registered agent appear in the registry; director and shareholder information is held privately by the registered agent. JAFZA offshore: similarly no publicly accessible beneficial ownership register. Information is held by the registered agent and accessible to JAFZA authority and law enforcement through appropriate channels only.

DMCC and Dubai South free zones: company registries include certain officer and activity information at the authority level. UAE companies are subject to UAE AML/CFT requirements, including beneficial ownership identification requirements that apply at the institutional level (banks, licensed corporate service providers) even where not publicly registered.

The UAE is a CRS-participating jurisdiction and FATCA IGA signatory. Financial institutions in the UAE report account holder information to the UAE Federal Tax Authority, which exchanges it with treaty partner tax authorities. This means financial account information — regardless of which UAE structure is used — will be reported to the account holder’s home-country tax authority where a CRS information exchange agreement exists.

US persons owning UAE companies must file Form 5471 (foreign corporation), FBAR, and Form 8938 for offshore accounts. The UAE provides legitimate tax efficiency and institutional credibility but not anonymity from tax authorities. Every UAE structure we form is built for full home-country compliance from day one.

1. Consultation and structure selection. We discuss whether RAK ICC, JAFZA, DMCC, or Dubai South is the right vehicle — based on your business activity, Dubai property requirements, UAE presence needs, banking requirements, and tax position. Getting this right at the outset is essential; restructuring after formation is costly.

2. Name reservation. We reserve your chosen company name with the selected authority. UAE naming rules prohibit names similar to existing registered names; certain words require additional approvals.

3. KYC and documentation. UAE company formation requires comprehensive KYC — certified passport, proof of address, source of funds, and business description. Free zone companies require more detailed documentation than offshore vehicles.

4. Register the company. We coordinate preparation of all constitutional documents and file with the relevant authority. RAK ICC and JAFZA offshore formation completes within three to five business days. DMCC and Dubai South free zone formation takes two to four weeks including licence issuance.

5. Post-incorporation compliance. UAE entities require ongoing compliance: registered office maintenance, annual return filing, annual fee payment, and where applicable, free zone regulatory requirements. We provide ongoing compliance support or introduce you to specialist UAE compliance providers.

6. Banking and operational setup. We manage bank introductions and coordinate the onboarding process through to an active, funded account. We advise on the most suitable institution for your company’s profile before any introduction is made.