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IBCImport / Export & Trading

Offshore Company (IBC) in United Arab Emirates — Import / Export & Trading Formation Guide

Choose a jurisdiction with strong logistics infrastructure, favorable customs agreements, and access to major trade blocs (like the EU or US). Consider VAT deferral schemes and free trade zones.

Last verified: June 13, 2026

Corporate Tax

9.0%

State Tax

0.0%

Formation Cost

$2,000

Annual Fee

$2,000

Forming a Offshore Company (IBC) in United Arab Emirates as a Import / Export & Trading means a total tax burden of 9.0% and an official formation cost of $2,000. This guide covers the steps, tax breakdown, banking options, and compliance requirements — all from verified data.

First-year total cost

$2,500

Ongoing (per year)

$2,000

Detailed cost calculator →

Why Offshore Company (IBC) for Import / Export & Trading?

A business model focused on sourcing goods from one country and selling them in another. Success relies heavily on supply chain efficiency, customs compliance, and navigating international trade tariffs.

Ideal for

  • Physical product brands
  • Wholesalers and distributors
  • Dropshippers scaling to bulk inventory
  • Cross-border B2B traders

Challenges to watch

  • Complex customs and import duties
  • High shipping and logistics costs
  • Cash flow management due to inventory delays
  • Regulatory compliance across multiple jurisdictions

Key decision criteria

  • Proximity to major ports or logistics hubs
  • Availability of Free Trade Zones (FTZs)
  • VAT and sales tax registration requirements (e.g., EORI in the EU)
  • Double taxation treaties between sourcing and selling countries

Estimated breakdown (based on avg. $1,000,000 revenue)

Gross Revenue$1,000,000
Corporate Tax-$90,000
Formation Cost-$2,000
Annual Fee-$2,000
Net Profit$906,000

Simulate with your own revenue →

VAT / Sales Tax

Standard rate 5%. Registration threshold: 375,000 AED. Non-resident providers of digital services must register for VAT regardless of the threshold if supplying to UAE consumers.

Banking & payments for Import / Export & Trading

Extremely difficult. Traditional UAE banks require high minimum balances (often $50,000+) and strict KYC for offshore entities. Stripe and PayPal do not support UAE offshore companies directly as they lack a trade license, so founders often rely on international EMIs or bank wires.

Supported payment gateways

2CheckoutPaddlePayoneer CheckoutBank Wire

Remote-friendly accounts

  • Currenxie

    Global EMI that supports UAE offshore companies for multi-currency B2B transactions.

  • Payoneer

    Good alternative for cross-border payments and B2B invoicing, accepting offshore entity registrations.

Offshore Company (IBC) formation steps

1

Step 1: Choose the offshore jurisdiction (RAK ICC, JAFZA, or Ajman) based on your business and banking needs.

2

Step 2: Select and hire an approved UAE Registered Agent, which is legally mandatory for offshore formation.

3

Step 3: Submit three proposed company names for approval by the respective offshore authority.

4

Step 4: Prepare and notarize KYC documents, including passport copies, utility bills, and bank reference letters.

5

Step 5: Draft and sign the Memorandum and Articles of Association (MOA & AOA).

6

Step 6: Submit the final application and pay the state incorporation and registered agent fees.

7

Step 7: Receive the Certificate of Incorporation and corporate documents (typically within 3-7 days).

8

Step 8: Register the newly formed entity with the UAE Federal Tax Authority (FTA) for Corporate Tax compliance.

Import / Export & Trading FAQ

Do I need a company in the country I am importing to?

Not always. You can often act as a Non-Resident Importer (NRI), but having a local entity can simplify customs, VAT registration, and local banking.

What is an EORI number and do I need one?

An Economic Operators Registration and Identification (EORI) number is required for businesses importing or exporting goods into or out of the European Union.

Should I incorporate in a Free Trade Zone (FTZ)?

FTZs offer tax exemptions and simplified customs procedures, making them ideal if you plan to re-export goods without them entering the local domestic market.

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