Author: Adil Ahmad
Summary
RAK ICC and JAFZA Offshore are the UAE’s two main offshore company structures. RAK ICC is the most popular and lowest-cost choice for international holding. JAFZA Offshore costs a little more but is the offshore vehicle commonly used to hold Dubai real estate, subject to Dubai Land Department approval. This guide compares cost, property rules, banking and use cases so you can choose the right one.
RAK ICC vs JAFZA Offshore: At a Glance
If you want a UAE offshore company, two names dominate every shortlist: RAK International Corporate Centre (RAK ICC) and JAFZA Offshore, registered with the Jebel Ali Free Zone Authority. Both are non-resident holding vehicles, and both share the same basic limits. Neither gives you a UAE office, visas or the right to trade with customers inside the UAE.
| Factor | RAK ICC | JAFZA Offshore |
|---|---|---|
| Regulator | RAK ICC (Ras Al Khaimah) | JAFZA (Dubai) |
| Typical annual cost | Lower, roughly AED 1,000 to 3,500 plus fees | Moderate, roughly AED 3,000 to 5,000 |
| Dubai real estate | Generally no | Yes, with Dubai Land Department approval |
| Best known for | International holding | Dubai property holding |
| Vehicle types | Several, including restricted-purpose and segregated portfolio | Single offshore company form |
| UAE visas and trading | No | No |
The short version: RAK ICC is the cheaper, more flexible general holding vehicle, while JAFZA Offshore is the one to look at if Dubai property is part of the plan.
Before choosing, it helps to understand where offshore fits. If you need to run a business, hire staff or hold a UAE visa, you need a free zone or mainland company instead. Our guide to UAE free zone vs offshore company explains the difference, and our offshore company formation service page covers how we support setup.
RAK ICC: The Most Popular UAE Offshore Structure
RAK ICC is the default for many international investors because it is simple, fast and inexpensive.
Why people choose RAK ICC:
- Low incorporation and renewal costs
- Quick, largely remote setup
- Several structures, including companies limited by shares, limited by guarantee, restricted-purpose companies and segregated portfolio companies
- Good fit for holding shares, investments, intellectual property and international assets
Limits to understand:
- It generally cannot hold Dubai real estate directly
- No commercial activity with persons inside the UAE
- No UAE residence visas or employees on the entity’s payroll
- Banking can be demanding, and some banks decline offshore entities for compliance reasons
Offshore does not mean hidden. RAK ICC companies are registered, must keep records and are subject to beneficial ownership disclosure and anti-money-laundering rules. Plan for transparency.
Read our guides to Ras Al Khaimah offshore company formation and the cheapest offshore company formation in the UAE.
JAFZA Offshore: The Offshore Structure Used to Hold Dubai Property
JAFZA Offshore is a company registered with the Jebel Ali Free Zone Authority but without a physical presence there. Its main practical advantage is property.
Why investors choose JAFZA Offshore:
- It is the offshore structure traditionally approved to own freehold property in Dubai through the Dubai Land Department
- Requirements typically include a no objection certificate from the Dubai Land Department and a Dubai-based contact person
- A well-known regulator with a long track record
- Suitable for general holding as well as property
Cautions:
- It is not the only route. DIFC foundations and ADGM SPVs are also used for Dubai property, so confirm current Dubai Land Department rules before you commit
- Rental income and capital gains from UAE property may now fall within UAE corporate tax, so model the tax before buying
- Some banks and mortgage lenders restrict lending to offshore entities
- Costs are usually quoted by registered agents, so ask for a full fee schedule
Read our guides to how to start a company in Dubai offshore, starting a business in Jebel Ali Free Zone and our JAFZA free zone page.
Cost: RAK ICC vs JAFZA Annual Fees
Published figures vary between providers and change over time, so treat these as indicative and request a written quote.
| Cost item | RAK ICC | JAFZA Offshore |
|---|---|---|
| Incorporation | From roughly AED 1,000 to 3,000 | Higher, typically quoted by agents |
| Annual renewal | Roughly AED 1,000 to 3,500, plus a separate government fee | Roughly AED 3,000 to 5,000 |
| Registered agent | Required, adds cost | Required, adds cost |
| Banking costs | Often higher effort and fees | Often higher effort and fees |
| Property-related | Not applicable | Dubai Land Department fees and approvals |
What the numbers do not show:
- Registered agent and registry fees can be significant
- A cheap structure can become expensive if the bank account is hard to open
- Property deals add Dubai Land Department costs and tax considerations
For wider cost context, see our guide to corporate tax for mainland and free zone companies, which explains the 9% corporate tax rate above AED 375,000 and how offshore property income can be treated.
Bank Account: Which Is Easier to Open?
Both RAK ICC and JAFZA Offshore companies can open bank accounts, but the process is more document-intensive than for a free zone operating company. Many founders underestimate this.
Why banks are cautious:
- No local office, staff or operations to verify
- Beneficial ownership and anti-money-laundering scrutiny
- Concerns about cross-border holding structures
What helps in practice:
- A clear purpose for the structure, such as holding shares or property
- Complete ownership documents and a clear source of funds
- A realistic timeline of weeks, sometimes months
- A bank that is comfortable with international and offshore clients
Neither structure has a guaranteed advantage. JAFZA’s established reputation can help in some conversations, particularly where Dubai property is involved, while RAK ICC is widely understood by banks that handle offshore clients. The quality of your documents matters more than the registry name.
If operational banking is central to your plan, a free zone company usually opens accounts faster. Read our guide to the best UAE free zone for holding companies for regulated alternatives such as DIFC and ADGM.
Use Cases: When to Choose RAK ICC vs JAFZA
Choose RAK ICC if:
- You want a low-cost holding vehicle for shares or investments
- You are holding international assets or intellectual property
- You do not need Dubai property or a UAE trading presence
- You want flexibility in structure types
Choose JAFZA Offshore if:
- You plan to hold Dubai freehold property through an offshore company
- You can manage the Dubai Land Department requirements and tax implications
- You value a Dubai-based registry with a long track record
Consider something else if:
- You need visas, an office or UAE clients: choose a free zone or mainland company
- You need English common law, strong banking and regulated structures: look at DIFC or ADGM
- You want a group structure: pair an operating free zone company with a holding company above it
Our guides to how to set up a holding company in the UAE, how to open an offshore company in the UAE and Ajman offshore company formation cover those routes.
How Incorpyfy Can Help
Choosing an offshore structure means matching your assets, banking needs and tax position to the right registry. Incorpyfy compares real quotes and manages setup end to end. Visit the Incorpyfy homepage to speak with a consultant.
For official references, see the RAK ICC, JAFZA, Dubai Land Department and the Federal Tax Authority.
FAQs
What is the difference between RAK ICC and JAFZA Offshore?
RAK ICC is a lower-cost, flexible offshore registry for general holding. JAFZA Offshore costs more and is commonly used to hold Dubai real estate with Dubai Land Department approval.
Which is cheaper, RAK ICC or JAFZA Offshore?
RAK ICC is generally cheaper, but registered agent fees and banking effort can narrow the gap.
Can a RAK ICC company own Dubai property?
Generally no. JAFZA Offshore, DIFC foundations and ADGM SPVs are the structures commonly used instead.
Can I open a UAE bank account with an offshore company?
Yes, but the process is more document-intensive and can take weeks or months.
Can an offshore company get UAE residence visas?
No. Offshore companies cannot sponsor visas.
Can an offshore company trade inside the UAE?
No. Commercial activity with persons inside the UAE is generally not allowed.
Is an offshore company anonymous?
No. It is registered and subject to beneficial ownership disclosure and anti-money-laundering rules.
Is UAE offshore tax free?
Not automatically. Corporate tax rules can apply, particularly to UAE property income, so get advice before you invest.
Which is better for international investors?
RAK ICC suits general holding, while JAFZA Offshore suits Dubai property holding.
Can I move from offshore to a free zone company later?
Moving between structures usually involves a new registration, so choose carefully upfront.
