JAFZA is one of the most sort-after offshore company formation destinations in the UAE. The region is popular for having excellent investor-friendly company formation policies. Bizvise business setup will assist you in JAFZA offshore company formation and provide the right guidance in all stages of development.
In Jebel Ali free zone, the company formation rules and regulations are designed in a manner that ensures flexibility and convenience for investors from diverse countries across the globe. To encourage corporate property ownership among business entities and investors, Dubai Lands Department has created designated freehold areas in the JAFZA region. JAFZA is the only free zone region where investors are allowed to own property in these areas.
If you set up an offshore, JAFZA company setup cost will slightly differ depending on the registered agent you choose.
Estimated Cost USD 3,000 Onwards
There are several benefits in setting up an offshore company:
- Confidentiality is preserved; there is no public record of shareholders or directors
- A registered office address (through Authorized Agent nominated by the offshore jurisdiction)
- 100% foreign ownership – Emirati partner is not required
- 100% ownership of the company
- 0% Corporation tax
- 0% VAT
- 0% Income Tax
- Personal income tax exemption
- 100% transfer of profits
- 100% transfer of capital
- Possibility of opening bank accounts in the UAE
- No residence visas
- No auditing required
- No foreign currency restrictions
- Not required to rent an office space
- Privacy of directors and shareholders is maintained
- Firms benefits from double taxation treaty between UAE and trade partners
Type of Companies that can be set up:
- Holding intellectual property
- Holding shares in international, local or free zone companies
- Investment company
- Trading activities outside the UAE
- Commission Agents
- Owning of properties
- General trading company
- Advisory and consultancy services
- International service sector
- Professional services sector
- Shipping companies
Features of JAFZA Offshore
- No minimum capital required
- 100% Foreign Ownership
- No need to deposit the capital in the bank
- Easy to open a corporate bank account
- A regulatory regime with a total exemption on taxes and duty
- Businesses are allowed to own and operate bank accounts in the UAE jurisdiction
Regulations of JAFZA Offshore
- The minimum number of Directors shall be two. The offshore company should have a Secretary (a UAE resident) who may also be a Director of the company.
- Corporate shareholders are allowed. But at least one shareholder is needed to start a JAFZA offshore company. These shareholders must present attested company formation documents before the authorities.
- All shares must be fully paid when allocated. No bearer shares or differential classes of shares are allowed
- The law allows those who setup an offshore company to own or hold an interest in properties.
- The offshore company must maintain accounting records from its inception date. Also, the accounting records of the company must be reconciled and reported annually.
- A registered agent is required to be appointed by the company. One can choose from the approved list of registered agents maintained by JAFZA / Dubai.
- The Offshore domicile is located in the Jebel Ali Free Zone (JAFZA).
Permitted business activities
Jebel Ali offshore companies are allowed to conduct commercial activities outside the UAE. They are legally restricted from performing commercial activities with business entities or individuals in the UAE jurisdiction. However, the company investors are permitted to own freehold properties in specific locations in Dubai.
Documents needed for JAFZA Offshore company registration
The company formation documents must include articles of association, memorandum of association, proof of residency of investors, investors’ personal profile, passport copies, bank reference.
Individual’s KYC Docs
- Original Passport (client can also provide an original notarized copy of the passport)
- UAE Visa Copy, if applicable
- UAE Entry Stamp, if applicable
- N.O.C. from UAE Sponsor, if applicable
- Address Proof (original recent utility bill for residence)
- Bank Reference letter (original)
- Duly filled FATCA Form
Corporate Shareholder’s KYC
- Certificate of Incorporation
- Memorandum / Articles of Association
- Power of Attorney
- Certificate of Incumbency
- Certificate of Good Standing
- Board Resolution
Before the company incorporation, all shareholders (or authorized attorneys) are required to personally visit and sign in the presence of the JAFZA Offshore Authority. Otherwise, they can issue a POA duly attested by the UAE consulate in their resident country & thereafter attested by the Ministry of Foreign Affairs, UAE.
Jebel Ali free zone is a popular international business destination and business operations hub. It offers the investors state of the art infrastructure, excellent business ambience, and strategic locations for trading activities. Well thought out, investor-friendly policies and regulations made the jurisdiction the ideal choice for setting up a business.
Our business consulting expertise helps us understand the specific needs of our clients and provide them with the best company incorporation solutions. Bizvise can easily handle all the legal and documentation formalities, provide setup from start to finish.
Connect with us for your JAFZA offshore company formation requirements; our team will be happy to assist you!