All you need to know about Jafza offshore company formation
Thinking about setting up a Jafza offshore company but don’t know where to start? Look no further because this blog will inform you about everything you need to know and have your offshore company started in no time.
UAE is one of the most ideal locations for all things business. This is because it has one of the most attractive tax regimes across the globe. Not to mention, it offers an array of opportunities to individuals who want to venture into their own entrepreneurial journey in the country.
Set up in 1985, Jafza is the flagship free zone of Dubai Ports (DP) World. Not only is it one of the oldest free zones in the UAE, it also happens to be one of the largest and fastest growing free zones in the country. It is in close proximity to the 7th largest container port named Jebel Ali Sea Port.
Continue reading to find out more about Jebel Ali Free Zone offshore company setup.
What is an offshore company?
An offshore company is essentially a company that is solely set up with the aim to operate outside its registered jurisdiction or location of its primary ownership. In addition, this type of company formation is a limited liability partnership with the registered free zone. In this case, the liabilities of the company are limited to the paid-up capital of the investor.
You can set up an offshore company as an individual shareholder or a corporate shareholder. An offshore company is also much quicker to set up compared to other business types in the UAE. Offshore companies that are formed here can not obtain a license or conduct business within the country. However, these offshore companies acquire certificates of business incorporation.
Although these companies are registered, they do not have a physical presence in the UAE. Therefore, the shareholders registering the offshore company in the country would not be able to obtain a residence visa. Investors of offshore companies also are not required to submit an annual audit report to the authorities.
They can also open a bank account in the UAE and/or abroad. Offshore companies can hold multi-currency bank accounts in the country to carry out routine international transactions.
Offshore companies in the UAE follow a process known as ‘Know Your Customer’ (KYC). This process is adopted to refer to the bank registrations of the investor as well as keep note on identifying theft, money laundering, frauds etc. The KYC process requires submission of various documents to the relevant authorities.
There are two jurisdictions in the UAE that offer offshore company formation, one of which is Jebel Ali free zone.
Although set up in a free zone, offshore companies are starkly different from free zone companies. The difference is that free zone companies are onshore entities that can carry out business in Dubai with certain conditions.
Both, free zone and offshore companies are subject to the same tax policies of the UAE.
Benefits of setting up an offshore company
There are numerous benefits of setting up an offshore company in the UAE. These include:
- No minimum share capital requirements
- Access to a stable and business-friendly legal system
- Access to a more flexible regulatory regime
- Better access to global funding
- 0% corporate, income, inheritance, and property tax
- No VAT
- Asset protection and privacy in operations
- Investment diversification
- Convenient process of opening a bank account
- Complete repatriation of capital and profits
- Low operational costs and world-class banking
Features of Jafza offshore company
Jafza is the only jurisdiction that allows offshore companies to legally own a property in Dubai. The free zone authorities do allow offshore companies to hold shares of both free zone and onshore companies (LLC).
There is no requirement for attestation of documents for use in the UAE, Bahrain, Saudi Arabia, and Qatar. Business activities in the free zone do not need to belong to a specific category. However, in a case where the investor wants to open a bank account, it is ideal to have activities under the same category.
Jafza offshore companies require a minimum of one shareholder. The jurisdiction also permits corporate shareholders. These partners must be physically present when registering the company.
There is a requirement of a minimum of two directors for an offshore company. However, the free zone does not permit corporate directors. Additionally, the details of the directors will not be visible on the public register.
Every offshore company to appoint a secretary as well. The director of the company may also take up the role of the secretary.
What is the process of starting a Jafza offshore company?
The application process of setting up an offshore company in Jafza is as follows:
- Select a company name
- Fill an application form
- Submit required documents to the authorities
- Submit the draft of Memorandum of Association (MOA) and Articles of Association (AOA)
- Open an offshore bank account
Set up your offshore company with Shuraa Business Setup
Setting up an offshore company is an ideal move for any entrepreneur who wants to conduct business outside the UAE. This is because Jafza offshore offers several benefits to entrepreneurs looking to venture into the world of business in the country.
Shuraa is one of the leading business setup companies in the UAE. For over 20 years we have been helping entrepreneurs form and maintain their businesses in the country. We will ensure that the entire process of your company setup runs smoothly. Our expert consultants will guide you all the way from registering your business to obtaining approvals from the relevant authorities.
Contact our legal corporate advisors to learn more about offshore company formation in Dubai. Call us at +97144081900 or send a WhatsApp message on +971507775554. Additionally, you can also drop in an email at [email protected] and get your queries answered in no time.