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?

 

[Clank]

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.

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 holding︀ for the time being (until dubai Freezone is established).

Looking for affordable options.

 

[OffshorePhantom]

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 you︀ will serve etc.

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