Starting a business in the UAE is one of the smartest moves for entrepreneurs and global investors. Among the many offshore jurisdictions, JAFZA (Jebel Ali Free Zone Authority) and RAK Offshore (Ras Al Khaimah International Corporate Centre – RAK ICC) are two of the most popular. But here’s the real question every investor asks:
👉 Which is better – JAFZA or RAK Offshore?
👉 Which one is cheaper?
👉 What are the key differences in costs, compliance, and benefits?
If you’ve been struggling with these questions, this guide will help you make a clear, informed decision. Let’s break down everything you need to know about JAFZA vs. RAK Offshore, including setup costs, benefits, ownership rules, and compliance requirements.
Need personalized guidance right away? Contact Raes Associates today for expert offshore company setup assistance.
What is JAFZA Offshore?
JAFZA Offshore, established in 2003, is one of Dubai’s leading offshore jurisdictions. It’s located in Jebel Ali Free Zone, close to Jebel Ali Port – one of the largest shipping hubs in the region.
Key Features of JAFZA Offshore:
- Allows 100% foreign ownership.
- Suitable for holding companies, international trading, and asset protection.
- Strong reputation among global banks and institutions.
- Requires a local registered agent for incorporation.
- Higher compliance and documentation compared to other offshore zones.
Read more here: Guide to JAFZA Offshore Company Setup
What is RAK Offshore (RAK ICC)?
RAK Offshore, managed by the Ras Al Khaimah International Corporate Centre (RAK ICC), is another top choice for investors looking for affordable and flexible offshore structures.
Key Features of RAK Offshore:
- Cost-effective compared to JAFZA.
- Ideal for SMEs, startups, and entrepreneurs.
- No minimum capital requirement.
- Simple and quick company registration process.
- Highly flexible for holding companies, consultancy, and international business.
Learn more: RAK Offshore Company Formation
JAFZA vs. RAK Offshore: At a Glance
Factor | JAFZA Offshore | RAK Offshore (RAK ICC) |
Reputation | Globally recognized, especially among banks | Popular among SMEs & cost-sensitive investors |
Cost | Higher setup & annual fees | Lower setup costs |
Ownership | 100% foreign ownership | 100% foreign ownership |
Capital Requirement | None | None |
Visa Eligibility | Offshore companies in JAFZA do not get visas (like all offshore entities) | Same – no visas allowed |
Best For | Large businesses, international investors | Startups, small businesses, holding companies |
Cost Comparison: JAFZA vs. RAK Offshore
One of the most common queries is:
Which is cheaper – JAFZA or RAK Offshore company setup?
JAFZA Offshore Costs:
- Company Registration Fee: Higher compared to RAK Offshore.
- Annual Renewal Fee: Approx. $2,500 – $3,000 (varies by agent).
- Registered Agent Fee: Additional.
RAK Offshore Costs:
- Company Formation Fee: Much lower than JAFZA.
- Annual Renewal Fee: Approx. $1,500 – $2,000.
- Registered Agent Fee: Included in most packages.
RAK Offshore is cheaper than JAFZA, making it a preferred choice for cost-conscious startups and SMEs.
Explore: Offshore Company Registration in UAE
Benefits of JAFZA Offshore vs. RAK Offshore
Advantages of JAFZA Offshore:
- Strong global credibility.
- Preferred for international trading and investor confidence.
- Trusted by banks for corporate accounts.
Advantages of RAK Offshore:
- Lower costs, ideal for startups & small investors.
- Quick setup with minimal documentation.
- Flexible for holding companies and consultancy firms.
Which Offshore Zone Should You Choose?
When comparing JAFZA vs. RAK Offshore, the choice depends on your business needs and budget:
- If you’re an international investor or large corporation, JAFZA is the right fit.
- If you’re a startup, SME, or cost-conscious entrepreneur, RAK Offshore is the smart choice.
Either way, setting up an offshore company in the UAE requires the right guidance to avoid costly mistakes.
Ready to take the next step? Contact Raes Associates today for expert offshore company setup assistance.
Frequently Asked Investor Questions
- What is the difference between JAFZA and RAK Offshore?
- JAFZA has stronger global recognition but comes at a higher cost.
- RAK Offshore is more affordable, flexible, and better suited for small businesses.
- Which is cheaper: JAFZA or RAK Offshore?
- RAK Offshore is significantly cheaper in both setup and renewal fees.
- Can foreigners open companies in JAFZA or RAK Offshore?
- Yes, both allow 100% foreign ownership.
- Is RAK Offshore good for small businesses?
- Yes, RAK Offshore is one of the best low-cost offshore options in the UAE.
- Why do investors choose JAFZA over RAK Offshore?
- For credibility, strong banking relations, and global recognition.
- Can JAFZA and RAK Offshore companies open bank accounts in Dubai?
- Yes, both can, but JAFZA companies have an easier process due to reputation.
Detailed guide: How to Open an Offshore Company and Business Bank Account
