Offshore to Freezone possibility in Dubai

[yeongsu]

Hello everyone,
I'd like to know the viability of the plan to establish an offshore company in Dubai from my home country and later (probably a year later) convert it to Freezone onshore.
Did anyone try anything similar before?

 

[Jbb1]

Currently having a free zone doesn’t have many advantages over a mainland company unless your activity is qualified.

 

[OffshorePhantom]

Also creating an offshore company in UAE and then converting it to a free zone company is generally not possible.
You would have to close your offshore company and open a free zone company from scratch.

Offshore UAE companies are pretty much useless (maybe the only advantage is holding some assets, but I would look at other jurisdictions if that is the goal) and it is also difficult (or even impossible) to open bank accounts for those.

 

[yeongsu]

@Jbb1 @OffshorePhantom thank you for your suggestions.

Offshore UAE companies are pretty much useless (maybe the only advantage is holding some assets, but I would look at other jurisdictions if that is the goal)

I was looking for options in Dubai because I'll be establishing a firm there soon. It's just that some things aren't working out for me at this moment.

Please suggest a suitable jurisdiction for the following case:
1. No financial transactions involved, no customers, hence no specific need of bank account.
2. Need the establishment just for brand name presence (pre-launch marketing) and trademark/intellectual property holding for the time being (until dubai Freezone is established).

Looking for affordable options.

 

[OffshorePhantom]

I was looking for options in Dubai because I'll be establishing a firm there soon. It's just that some things aren't working out for me at this moment.

What kind of firm do you want to establish?
If it is a local firm which will serve the local market a mainland company would be more suitable.
Free zone companies nowadays do not have lots of advantages with respect to mainland companies (unless some clarifications that prove otherwise would be released).
Before giving you some suggestions we would need to know the nature of the business, where are the clients you will serve etc.

If you do not need to serve the local market a US LLC would be cheaper and more effective, even to hold your IP for the time being.

 

[fbsworld]

Hi!
Yes I confirm we have converted (the official wording is "redomiciliation") offshore companies to freezone companies:
- RAKICC (Offshore) to RAKEZ (Freezone)
- RAKICC (Offshore) to IFZA (Freezone)
FYI, it is not possible to do it with a AFZA (Freezone) companies.
It costs around AED 8,000 and it could take up to 2 months.

 

[Ancova]

I have been employed by a Dubai Free Zone for many years and I can only suggest not to migrate from one jurisdiction to another. Extremely slow and frustrating since every jurisdiction hates losing licensee's and will make it extra difficult to migrate. I always suggest to close the current one and open a new one.