JAFZA is one of the fastest growing freezones of Dubai with its own set of regulations, and was created for the express purpose of attracting foreign investment. The Jebel Ali Free Zone (JAFZA) Offshore companies are non-resident companies with special status and are formed under the JAFZA Offshore Companies Regulations enacted on 15. 1.2003. Let’s take a look at the advantages and benefits offered for offshore company formation in JAFZA.
What you Should do for Offshore Company Formation in JAFZA?
At the outset, this freezone was set up to become a global business hub. With its solid infrastructure and strategic location, JAFZA is an attractive proposition for offshore company formation Dubai. Here entrepreneurs can register offshore company in Dubai and also free zone companies with licenses to operate. Though licenses are mandatory for doing business in UAE, offshore companies do not require an operating license as they cannot conduct trading, manufacturing or business within the Emirates.
So why are investors happy to setup offshore company in JAFZA? Let’s take a look at the special advantages offered by this special economic zone:
- A company registered in JAFZA has a legal status for carrying on bona fide business and makes it easy to conduct business within the Middle East
- JAFZA offshore has a reputation as a serious global hub for trading and manufacturing, which is advantageous for the company
- Only offshore companies registered in JAFZA can own property, either in their individual names or through UAE companies
- Offshore companies registered in JAFZA can easily open bank accounts in Dubai
- No taxation and no restriction on capital and profit repatriation
- Assistance with banking, insurance, visas, accounting, legal matters, feasibility studies and so on
These are the steps for offshore company formation in JAFZA:
- You need to contact a reliable JAFZA authorized agent for the registration process
- Get an official quote for the scope of work you need, like registration, nominee services, opening bank accounts, any specific attestations required
- Submit three names for the company out of which one will be finalized by the authorities
- Decide upon the activities of your business – property investment, consultancy, trade, or acting as a holding company
- Determine the share capital
- Finalize the list of shareholders, a minimum of 2 directors, and secretary
- Submit the mandatory documents, like passport copy, address proof, reference from bank and shareholders’ resume.
- The Memorandum, Share certificates, fees and application forms signed by the shareholders, secretary and directors is submitted in the presence of the shareholders.
- If the Registrar is satisfied that everything is in order, the company is registered in three days.
Offshore company incorporation JAFZA can be done as limited liability companies. The companies can be formed with a single shareholder, and there is no limit on the maximum number. The company should have ‘limited’ as a suffix to its name.
Companies have to pay a one-time registration fee of AED 10,000 and an annual fee of AED 2,500 to renew it. Land and office space is provided at reasonable rates and easy terms of renewal.
Offshore company setup in JAFZA can engage in the following activities apart from those mentioned before:
- Interacting professionally with legal consultants, lawyers, accountants and auditors
- Holding shareholders and directors’ meetings
- Opening branches or representative offices worldwide
- Holding shares of a limited liability company being formed in Dubai or elsewhere in UAE
- Holding shares in any other entity formed within the UAE, outside the UAE or within UAE Free Zones
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