Ajman Offshore
An offshore company registered through the Ajman Free Zone regime. It is the lowest-cost of the three UAE offshore options and suits simple holding structures, but cannot own Dubai real estate.
Related: Ajman formation
UAE Offshore Reference
UAE offshore glossary
Plain-English definitions of the entities, structures, roles and rules behind UAE offshore companies – written to be accurate and quick to scan. Start typing to filter.
Articles & Memorandum of Association (MoA / AoA)
The founding documents that define an offshore company’s permitted activities, share structure and internal rules. For offshore companies, permitted activities are set out here rather than on a licence.
Asset protection
Using a separate legal entity to ring-fence assets (shares, IP, property, investments) from operating risks or personal exposure. A common, legitimate purpose of offshore holding structures.
Ultimate Beneficial Owner (UBO)
The natural person who ultimately owns or controls a company. UAE rules require companies to identify and disclose their UBO to the authorities and keep the information current — a key reason offshore companies are private but not anonymous.
Related: UBO / CRS / FATCA
Certificate of incorporation
The document a UAE offshore company receives on formation. Unlike a free zone or mainland company, an offshore company gets a certificate — not a trade licence — and cannot trade onshore in the UAE.
Company Limited by Shares (CLS)
The most common offshore structure. Shareholders’ liability is limited to the capital they invest. Used as an IBC, holding company, SPV, joint venture or family office.
Company Limited by Guarantee (CLG)
A structure whose members guarantee a fixed amount payable only on liquidation. Membership is non-transferable. Typically used for associations or to confer membership rights.
Corporate Tax (UAE)
The UAE federal tax on business profits, effective for financial years from 1 June 2023: 0% up to AED 375,000 and 9% above. Offshore companies generally must register even where the outcome is 0%.
Related: Do offshore companies pay tax?
Common Reporting Standard (CRS)
An international framework, adopted by the UAE, for the automatic exchange of financial-account information between tax authorities — including the account holder’s country of tax residence.
Double Tax Treaty (DTT)
An agreement between two countries to avoid taxing the same income twice. The UAE has an extensive treaty network, though access often depends on substance and a tax residency certificate.
Economic Substance Regulations (ESR)
UAE rules requiring entities carrying on a defined ‘relevant activity’ (e.g. holding company, financing, IP, headquarters) to demonstrate adequate substance in the UAE and meet reporting obligations. Some licensees are exempt.
Related: ESR guide
FATCA
The US Foreign Account Tax Compliance Act, under which financial institutions report information on accounts connected to US persons. Relevant to UAE entities with US-linked ownership.
Free zone company
An onshore UAE entity holding a trade licence that can operate within its free zone and internationally, and can sponsor residence visas — unlike an offshore company. Distinct from an offshore company.
Related: Offshore vs Free Zone
Holding company
A company whose main purpose is to own assets, shares or IP rather than to trade. A core legitimate use of UAE offshore vehicles, often achieving a passive, low-activity profile.
International Business Company (IBC)
A widely used offshore vehicle category for holding, trading and structuring outside the country of incorporation. UAE offshore companies belong to this global family (alongside e.g. BVI or Seychelles IBCs).
JAFZA Offshore
An offshore company under the Jebel Ali Free Zone Offshore Companies Regulations — the Dubai-area offshore vehicle and the only UAE offshore company generally permitted to directly own Dubai real estate. There is no separate “Dubai offshore” registry.
Related: JAFZA formation
KYC / AML
“Know Your Customer” and Anti-Money-Laundering checks. Offshore incorporation and bank-account opening require verified identity, address and source-of-funds information.
Offshore company
A legal entity incorporated in a UAE offshore jurisdiction to operate outside the UAE. It receives a certificate of incorporation (not a licence), cannot trade onshore, and does not grant residence visas. Used for holding, asset protection, IP and international trade.
Related: Offshore hub
Qualifying Free Zone Person (QFZP)
A free zone entity meeting defined conditions to obtain 0% Corporate Tax on qualifying income, with non-qualifying income taxed at 9%. Applies to free zone — not offshore — companies.
RAK ICC
The Ras Al Khaimah International Corporate Centre — the registry that around 2016–2018 consolidated RAK’s earlier offshore regimes. A modern “RAK offshore” company is a RAK ICC company; references to “RAK Offshore” as a separate product are outdated.
Related: RAK ICC formation
Registered agent
A licensed intermediary that, by law, every UAE offshore company must appoint to incorporate and maintain it. The agent’s office serves as the company’s registered address and handles dealings with the registry.
Related: Why an agent is mandatory
Special Purpose Vehicle (SPV)
A company created for a single, defined purpose — such as holding one asset, ring-fencing a project or isolating risk. Frequently set up as an offshore CLS.
Tax Residency Certificate (TRC)
A certificate confirming a company’s UAE tax residence, sometimes needed to access double-tax-treaty benefits. Issuance depends on meeting substance and presence conditions.
Unlimited Company (UC)
A structure where members carry joint, several and unlimited liability, yet the company remains a separate legal entity that can own assets. Used to avoid shareholder guarantees and for international tax planning.
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Disclaimer. Definitions are simplified for general understanding and are not tax or legal advice. UAE rules – including Corporate Tax, ESR and UBO – change over time; confirm current specifics for your situation. Reviewed by [Advisor name, qualification]. Last reviewed: June 2026.