In 2026, global businesses are increasingly focused on cost efficiency, asset protection, and expansion. Offshore business setup in Dubai assist business-minded individuals in reducing operational costs and asset protection through legally recognized frameworks. As international e-commerce, digital business, and investments are rising, offshore companies are increasingly becoming attractive and offering easy access to international markets.
In addition, many investors are choosing offshore companies because of their privacy, compliance, and business security. In this guide, let’s discuss about offshore company formation in Dubai, its benefits, and other details.
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Benefits of an Offshore Company in 2026
- No minimum Capital
The UAE allows offshore companies to be incorporated without the need to pay any minimum capital, thereby making it easy and cost-effective to set up and maintain the company.
- No Double Taxation
The UAE has entered into a double taxation avoidance agreement with many countries, thereby helping businesses avoid paying tax twice on the same income earned from different countries.
- Exemption from customs duties
Offshore companies involved in international trade activities are exempt from paying customs duties in the UAE since they do not conduct import and export activities in the UAE.
- Tax benefits
Offshore companies enjoy tax benefits such as zero tax on corporate and personal income tax on international business activities.
Steps to offshore company formation in the UAE
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Select the Right Jurisdiction
Select the offshore jurisdiction that suits your needs and goals, such as JAFZA offshore in Dubai.
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Appoint a Business Consultant in Dubai
The offshore company process can be difficult to handle on its own. It is recommended to choose an expert who will handle all government submissions on your behalf.
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Reserve a Company Name
Choose a unique company name that complies with the registrar’s regulations and obtain approval before proceeding.
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Choosing the Right Business Activities
Choose your offshore activities, such as international trading, holding companies, and consultancy, and ensure that your offshore company does not trade within the UAE.
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Prepare and Submit Documents
Submit your KYC and incorporation documents, such as:
- Passport of all shareholders
- Proof of residential address
- Bank reference letter
- CV or business profile of the owner
- Brief description of the business activity
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Submit the Application
The application needs to be submitted accompanied by the Memorandum of Association and Articles of Association (MOA & AOA).
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Obtain Certificate of Incorporation
After it gets approved, obtain a Certificate of Incorporation for your offshore company.
Documents Required for Offshore Business Setup in Dubai
- Passports of all shareholders and directors
- Proof of Residence
- Bank Reference Letter
- Application Forms
- Passport-sized photographs of all shareholders
- Key Documents for Corporate Shareholders
- Certificate of Incorporation
- Memorandum of Association
- Articles of Association
- Board Resolution
- Trade name reservation certificate
- Proof of Ownership
Opening an Offshore bank account in Dubai
Opening an offshore bank account in Dubai enables the management of international transactions with high levels of security and efficiency, while the UAE provides a strong banking system. Although offshore companies cannot conduct business in the local UAE markets, they may open multi-currency corporate bank accounts with UAE or international banks, subject to strict compliance checks. After approval, the account enables the management of global transactions, investments, and assets with high levels of security and confidentiality.
The process involves the following steps:
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- Comprehensive KYC and due diligence on shareholders and directors
- Verification of the source of funds and the business activity
- Submission of personal and business-related documents
- Review and approval from the bank, which may take a few weeks
Set Up Your Company with DXB-VIP!
DXB-VIP offers business setup solutions in Dubai and across the UAE. If you are interested in starting your own offshore business setup in Dubai or in the UAE, we recommend that you set up your company by choosing with our business consultants in Dubai. Connect with us today to get started!
Frequently Asked Questions
- Is it legal to set up an offshore company formation in 2026?
Yes, it is completely legal to set up an offshore company in 2026 and any other year as long as it is done in a legal jurisdiction and the business activity is legal.
2. Who can open an offshore company?
In most offshore jurisdictions, 100% foreign ownership is permitted, and a foreigner can own and control the company without any local sponsor.
3. How long does it take to open an offshore company?
On average, it takes a few days to a few weeks to open an offshore company.
4. Can an offshore business setup in Dubai allows to open a bank account?
Yes, it is possible to open a corporate bank account in an offshore company’s name; however, it has to go through a strict procedure with the bank and comply with all its rules and regulations.
5. Do offshore business setup in Dubai pay taxes?
Taxes vary depending on the jurisdiction and the place of business activity; however, most offshore jurisdictions offer a low or zero-tax regime.
6. Do offshore business setup in Dubai require a physical office?
No, offshore companies do not require a physical office; however, it is always recommended to consult a company formation expert before proceeding with any such activity.