Brief

The most common offshore jurisdictions for setting up companies include British Virgin Islands (BVI), Cayman Islands, and Seychelles, valued for their tax neutrality and ease of incorporation. Other popular areas like Delaware, Panama, and UAE free zones attract businesses due to privacy, tax-free, low costs, and strategic locations.

British Virgin Islands leads due to its stability as a British Overseas Territory, zero corporate tax, and no paid-up capital requirement. Cayman Islands excels for hedge funds and financial services with over 200 banks and tax exemptions. Belize offers quick setup, high privacy, and no taxes on offshore income, ideal for asset protection.

UAE areas like Meydan, Ras Al Khaimah and Jebel Ali Free Zone provide proximity to Dubai, no local taxes for offshore entities, and fast processing. Panama stands out for minimal regulations, real estate ownership rights, and access to the Colon Free Trade Zone. Mauritius features low 3% tax for Global Business Companies and exemptions on non-resident activities.

Factors like political stability, banking access, and compliance costs determine popularity; BVI and Cayman host most global offshore entities. For UAE residents, local free zones offer logistical advantages without residency mandates. Always verify current regulations as jurisdictions evolve.

Key Factors

Here are some of the most important factors to consider for choosing an offshore jurisdiction:

• Jurisdiction Selection: choose based on tax neutrality, economic stability, and reputation to avoid blacklisting risks. Assess infrastructure, banking access, and treaties for cross-border operations. Popular spots like BVI or UAE free zones offer low taxes but vary in privacy levels.
• Legal and Compliance Requirements: Review laws on consumer protection, AML/KYC, and employment to ensure viability. Appoint a registered agent for filings and appoint directors/shareholders without residency mandates in most areas. Submit KYC documents like passports and proof of address during incorporation.
• Costs and Processes: Factor in registration fees, agent costs, annual filings, and audits; timelines range from days to weeks. Open a corporate bank account post-incorporation, often abroad for flexibility. Use consultants for name approval, MOA/AOA drafting, and ongoing maintenance.

Comparison

Offshore jurisdictions like BVI, Cayman Islands, Seychelles, Meydan, RAK ICC, and JAFZA vary significantly in tax treatment, costs, setup speed, and suitability for a Dubai-based legal consultancy serving corporates. BVI and Cayman offer robust global recognition for international advisory, while UAE options provide logistical advantages with 0% tax on qualifying income. Selection depends on your client base, banking needs, and compliance tolerance.

Aspect	BVI	Cayman Islands	Seychelles	Meydan	JAFZA
Corporate tax	0% on foreign income	0%	0% on foreign income	0% on foreign income	0% on foreign income
Setup time	1-2 days	3-5 days	1-3 days	2-3 days	5-7 days
First year cost	USD 1,800	USD 3,500	USD 700	USD 3,500	USD 5,500
Renewal	USD 1,500	USD 2,900	USD 655	USD 3,500	USD 5,500
Audit requirement	No	No	No	No	Yes
Best for	Asset holding & international contracts	Financial & legal advisory	Low-cost startups	Most of the business, especially trading	Logistics

* All above are indicative and may change from time to time

All of the offshore jurisdictions require KYC documents (passport, proof of address), registered agent, and company name approval. UAE jurisdictions like Meydan and JAFZA demand economic substance declarations for tax exemptions, aligning with your local operations. Non-UAE spots like BVI offer simpler filings but face OECD scrutiny.

Get a free advise today by filling out the below form: