When you decide to incorporate an Offshore Company in Dubai, you have to do it in a specific designated UAE Economic Zone, which is the Jebel Ali Free Zone, most commonly known as JAFZA. This is because this jurisdiction offers many advantages to businesses looking to carry out international business activities.
In this regard, the Company Formation in Jebel Ali Offshore can provide outstanding benefits to business owners and investors that are looking to access international markets but at the same time, enjoy the advantages that the UAE provides.
JAFZA is the preferred place for foreign investors thanks to its flexible and investor-friendly regulations and policies. One of the advantages this place has to offer is that investors can own property in specific areas designated by the Authority.
Steps for incorporating a Jebel Ali Offshore Company
The Business Setup in Jebel Ali Offshore is a pretty simple process. You just have to make sure you have all the mandatory documents and that you comply with the requirements so there are not any delays with the application.
Typically, an offshore company in JAFZA is not present in the United Arab Emirates. Investors just registered here and shareholders generally don’t have a resident visa. Therefore, you can incorporate the company without being present.
To start your Business in Jebel Ali Offshore you just have to submit the documentation and
Documents required for incorporating a Jebel Ali Offshore Company
To carry out the Jebel Ali Offshore Company Setup you have to gather the required documentation to obtain the approval for your business. Make sure to have everything ready, notarized and attested, in case is necessary, so you don’t face any delays in the process.
Here are the documents you must have to incorporate your JAFZA Offshore Company:
- AOA and MOA
- Proof of residency
- Personal profile for investors
- Valid passport copy for each investor
- Bank reference
Requirements for incorporating a Jebel Ali Offshore Company
Incorporating an Offshore Company in JAFZA means that you’ll have to follow the established regulations and law regarding this type of business entity. In this regard, you have to comply with the requirements of an offshore company formation in Dubai.
The key features your company must have in order to incorporate it in JAFZA are the following:
- At least one shareholder to incorporate the company. It’s allowed to have corporate shareholders as long as it has the company formation documents duly attested.
- It’s mandatory to have two directors. Keep in mind that personal details of company’s director are not public.
- Company secretary is mandatory. A director can assume this role
- Companies must report the accounting records once a year.
- It’s mandatory to keep the accounting records from the incorporation date during 10 years
- To obtain a director’s visa it’s necessary to rent a physical office space in JAFZA
- Although the offshore company can be incorporated without being present, shareholders must sign the incorporation documents in the presence of a JAFZA representative
- The company’s director also has to be present when it’s time to sign the documents
- Any offshore company can be subject to investigations in the JAFZA registrar decides to do it.
The registration process may take 1-2 weeks and after that you can start your operations in JAFZA with your offshore company.
Advantages of a Jebel Ali Offshore Company
- Foreign investors can have 100% ownership of a Dubai offshore company.
- 100% capital repatriation
- No foreign exchange limits
- Total return of profit
- An offshore company can own a property in a designated area
- An offshore company can hold shares in another companies such as an LLC or a UAE Free Zone company
- With an offshore company in JAFZA you can conduct international business easily
- You can open a local multi-currency bank account and carry out transactions with international customers and providers easily
- The JAFZA offshore company cost has competitive rates compared to other jurisdictions
Permitted activities for a Jebel Ali Offshore Company
The offshore company formation in uae is highly demanded by foreign investors because it allows them to enjoy from the many benefits this place has to offer. When it comes to the licensing in JAFZA for an offshore company there’s not a business license issued upon incorporation.
The offshore company in JAFZA will receive the Certificate of Incorporation and after that it’s ready to start operations. Since one of the benefits of an offshore company is that you can carry out multiple commercial and service activities, investors can give it a variety of uses:
- International trading: carry out trading activities internationally with your offshore company by establishing it in an offshore area
- Property owning: you can own a property with your offshore company
- International professional services: offer your professional services and carry out service-related activities with your offshore companies to reach a wider audience.
- Holding: an offshore company can be used as a holding company from where investors can manage their business thanks to the holding structure
- Intellectual property rights: you can use an offshore company to register copyrights, trademarks and patents in the name of said company. You can also engage in activities of buying/selling property rights.
Since the business activities are not grouped or limited to a particular business license, you can use your offshore company to carry out a broad variety of activities. However, it’s advisable to group your chosen activities and engage in a sector or industry to obtain better results.
Jebel Ali Offshore Company Formation costs
One of the cheapest offshore company formation in uae is in JAFZA. Here we have the jebel ali free zone license cost:
- JAFZA company setup cost: starts from AED 18,000
- Share capital: minimum of AED 10,000
- Registration fee: AED 10,080 (one-time payment)
- Annual renewal: AED 11,000
Keep in mind that the annual renewal is highly important and you must carry out the necessary formalities to do it. In case you don’t want to continue operating with your offshore company in JAFZA, you must carry out an official liquidation which costs about AED 8,000.