Jebel Ali Free Zone Authority (JAFZA), a renowned free zone established in 1985, holds the distinction of being one of the oldest, largest, and most respected free zones in the United Arab Emirates (UAE). Recognizing the growing demand for offshore company setup in JAFZA, JAFZA introduced the JAFZA Offshore Companies Regulations in 2003, enabling investors and corporate entities to establish non-resident or offshore companies within the free zone.
JAFZA offshore company formation offers a range of benefits, making it an attractive choice for investors seeking to establish entities for various purposes. Many investors opt for offshore companies in JAFZA to serve as holding companies or to engage in property acquisitions within Dubai. The primary motivations behind setting up an offshore company in JAFZA often revolve around minimizing tax liabilities and safeguarding assets. It’s important to note that JAFZA offshore companies are prohibited from conducting any business activities within the UAE. Instead of a traditional business license, the Authority issues a certificate of incorporation to signify the establishment of the offshore company.
To initiate a business setup in JAFZA, investors are required to engage the services of registered agents in Dubai. These agents play a pivotal role in facilitating the setup process and providing the necessary office space for the offshore company. The registered agent work as a liaison between the investor and JAFZA, ensuring a smooth and efficient establishment process.
Key Features of a JAFZA Offshore Company
A JAFZA Offshore company, established under the JAFZA Offshore Companies Regulations, offers several key features that make it an appealing choice for investors. Here are some of the key features of a JAFZA Offshore Company –
1. Non-Resident Status
A JAFZA Offshore company is considered a non-resident company, which means it is not permitted to conduct business activities within the UAE. This non-resident status provides flexibility and advantages for certain types of investments and asset protection.
2. Tax Efficiency
JAFZA Offshore companies enjoy favorable tax benefits. They are exempt from corporate and income taxes, making them an appealing choice for people and businesses seeking to decrease their tax penalties.
3. Asset Protection
One of the primary reasons investors choose to Jabel Ali offshore company formation is for asset protection. The regulations provide a secure environment for safeguarding assets and wealth. This protection can be especially valuable for holding assets such as properties, intellectual property, or investments.
4. Confidentiality and Privacy
JAFZA Offshore companies offer a high level of confidentiality and privacy. The elements of company executives and shareholders are not publicly disclosed, assuring secrecy and safeguarding the privacy of the company’s stakeholders.
5. Ease of Setup
Setting up a JAFZA Offshore business is a fairly detailed procedure. With the assistance of registered agents who specialize in offshore company setup in JAFZA, investors can navigate the requirements and establish their company efficiently.
6. Minimum Compliance Requirements
JAFZA Offshore companies have minimal compliance requirements compared to onshore companies. They are not required to maintain accounting records or submit annual financial statements. However, it’s important to note that proper record-keeping and financial management are still recommended for internal purposes and to comply with the regulations of the investor’s home country.
7. Registered Agent
To establish a JAFZA Offshore company, investors must engage the services of a registered agent. Registered agents are authorized service providers who assist with the setup process, act as a liaison with JAFZA, and provide a registered office address for the company.
The Process for Jafza Offshore Company Formation
1. Determine eligibility – Confirm that you fulfill the eligibility measures for offshore business setup in Jafza. Offshore companies in Jafza are generally used for international business activities and cannot conduct business within the UAE.
2. Choose a corporate service provider – Engage the services of a corporate service provider or business setup consultancy firm specializing in offshore company formation in Jafza. They will direct you during the procedure and manage the necessary documentation and procedures on your behalf.
3. Documentation and application – Prepare the required documents, which typically include –
- Completed application form
- Passport copies of shareholders and directors
- Proof of address for shareholders and directors (e.g., utility bills or bank statements)
- Curriculum vitae (CV) of directors
- Memorandum and Articles of Association (MAA)
- Bank reference letters
- Legalized and notarized documents if required (depending on your jurisdiction)
Your corporate service provider will assist you in compiling the necessary documents and submitting the application to the Jafza authorities.
4. Name reservation – Once the application is submitted, the Jafza authorities will review and approve the proposed company name. It’s advisable to provide multiple name options to ensure a higher chance of approval.
5. Share capital – Determine the share capital for your offshore company. Jafza does not have a minimum share capital requirement, but it is recommended to consult with your corporate service provider to determine an appropriate amount.
6. Incorporation and licensing – After the name is approved and share capital is determined, the incorporation process begins. The corporate service provider will assist in drafting the Memorandum and Articles of Association (MAA) and other necessary incorporation documents. Upon completion, you will need to sign the documents and submit them to the Jafza authorities.
Once the incorporation is complete, you will obtain a Certificate of Incorporation and a License to operate as an offshore company in Jafza.
7. Bank account opening – Open a corporate bank account for your offshore company. Your corporate service provider can assist in facilitating the bank account opening process by providing the necessary documents and liaising with the banks.
8. Post-incorporation conditions – After the business is incorporated, you will need to fulfill certain post-incorporation requirements such as –
- Appointment of directors and officers
- Maintenance of accounting records
- Compliance with annual filing requirements
- Renewal of licenses and permits
Your corporate service provider can guide you through these ongoing compliance requirements.
Cost of Jafza Offshore Company Formation
The cost of Jebel Ali offshore company formation can vary depending on various factors such as the chosen corporate service provider, the complexity of the company structure, and additional services required. Generally, the costs involved in Jafza offshore company formation include government fees, professional service fees, license fees, and ongoing annual maintenance fees. It is advisable to consult with a corporate service provider to get a comprehensive understanding of the expenses applied rely on your precise conditions and circumstances.
Also Read: Cheapest Offshore Company Formation in Dubai, UAE
