The company formation in JAFZA offshore is a strategic initiative of the Dubai Government to provide business-friendly rules and regulations coupled with world class infrastructure.
When setting up a JAFZA offshore, the company will be registered as non-resident which is having a corporate legal structure in Jebel Ali Free zone Dubai UAE. JAFZA Offshore Regulations permits the incorporation of an offshore company by individual or by establishments.
There are multiple reasons why investors should form an offshore company in JAFZA, some of them are as follows:
- Corporate tax exemption
- Privacy and confidentiality
- Provides a flexible and legislative framework for the business
- Advanced banking system and banking opportunities
- Opportunity to work with foreign investors
- Opportunity to recruit experienced and professional employees
- Having guaranteed confidentiality and privacy in the business
Also Read: Open a New Company in Jebel Ali Free Zone
Requirements of JAFZA offshore company formation
- Shareholders: a minimum of one shareholder whether individual or corporate in nature is required. Shareholders meeting should be conducted periodically. Every company should maintain minutes of all proceedings of meetings.
- Directors: A minimum of two directors are required and corporate directors are not permitted. Details of director are not available for public inspection. Each director holds office for a period determined by the shareholders. In the event of death or resignation, another director may be appointed by a resolution of the shareholders.
- Secretary: every company shall have a secretary which is appointed by the shareholders for such period as the shareholders may determine.
- Maintain Annual accounts and audit: every company shall maintain accounts, which shall be preserved from the date on which they are prepared. An offshore company accounts shall be approved by the directors and signed by one of them. An offshore company will appoint an auditor for annual audit who shall examine the report in accordance with these regulation upon the accounts prepared.
- Company register and minutes of meetings: all offshore companies are required to maintain the following registers
- Register of members
- Registers of directors and secretary
- Maintain Minutes of meetings.
- Inspection: the registrar has the power to appoint competent inspectors to investigate the affairs of offshore company. Upon discretion of the registrar, the inspection cost may be charged to any office of offshore company.
- Opening a bank account: JAFZA offshore company formation can open and operate bank accounts in local or international in the name of the company. Offshore company’s bank accounts are subject to the approval of local and international banks and the requirements differ from bank to bank.
Process for JAFZA offshore company formation
- Step 1. Finalize the scope of activity: It is important to check with the respective free zone authority about the permitted activities. There are certain rules and regulation on the type of activities and the procedure is different for each activity.
- Step 2. Deciding a name: the person initiating company formation will suggest few names for company, out of which one name shall be approved by the registrar.
- Step 3. Submit an application: Any one or more persons may, by signing and delivering to the Registrar an application for a certificate of incorporation. An offshore company may be incorporated to conduct any lawful business.
- Step 4. Review by registrar: the application with required documents are submitted will be reviewed and verified by the registrar. The registrar may refuse to register an offshore company if he proper grounds for refusing such registration
- Step 5. Issuing the certificate of incorporation. If all the documents are verified and there are no such grounds for refusal the registrar may issue a certificate for incorporation for offshore company.
Limitations on activities
Below mentioned are few activities which are not permitted for offshore company formation:
- Cannot Directly carry put any commercial activity in UAE
- cannot carry any banking business
- they cannot carry any insurance or re insurance, or insurance broker type business
- they are restricted from carrying out any other activity which may be prohibited by the authority from time to time
Business setup consultants for offshore companies
Far consulting middle east is a registered company that has been facilitating offshore company setup in UAE for global entrepreneurs. Our extensive experience helps us meet the unique needs of our clients and provide them a trouble free a customer friendly working environment.
We handle all the legal and documentation formalities provide strategic business inputs that take care of your off shore company formation. contact us for your off shore company setup requirements in JAFZA, our team will be glad to assist you.