Offshore Company Formation in JAFZA

An offshore company is often confused with a free trade zone. Unlike free trade zones, offshore companies are allowed to operate beyond its jurisdiction with other companies in the UAE. The two most popular offshore zones include Ras Al Khaimah (RAK) and the Jebel Ali Free Zone (JAFZA). Offshore Companies have the freedom to open multi-currency accounts in the UAE and conduct business globally. They get total anonymity, confidentiality, and privacy in operations. Additionally, they face no value-added tax or capital gains tax. Another key point of differentiation of an offshore company with an FTZ company is that an offshore company is not bound by the minimum capital threshold.

As per UAE laws, an offshore company cannot rent office space in UAE (but can operate in an office under the name of the company’s registered agent in UAE). Also, no employment permits or visas are issued to offshore company managers or employees.

Benefits of forming business in JAFZA offshore

JAFZA is formed under the special stipulations of JAFZA offshore company regulations. Businesses setting up offshore operations here can avail of many business benefits.  Some key advantages on offer include –

• After you have registered your company as a JAFZA offshore company, you get a legal status for conducting business transactions with companies or individuals within the JAFZA premises or outside it anywhere in the Middle East.
• JAFZA offshore companies avail of zero tax facility on both – corporate tax and income tax. Additionally the foreign companies operating here have the provision to repatriate 100% of the capital and profits from the company.
• JAFZA has emerged as a favourite global hub for trading and manufacturing. Companies into these businesses are approaching JAFZA due to the facilities on offer here.
• Offshore companies in JAFZA have the facility to own property either in their own name or in the name of a company that is located in UAE.
• Offshore companies in JAFZA find it easier to start and operate own bank accounts in Dubai.
• JAFZA offshore companies enjoy a streamlined and simplified process in matters like banking, insurance, legal matters, and accounting.
• There is no requirement to deposit capital in the bank.

A registered agent like EBS needs to be appointed by an offshore company in JAFZA to handle paperwork and get office space on lease.

Types of  legal entities

Offshore companies in JAFZA enjoy legal status are formed under the JAFZA Offshore Companies regulations. There are three broad categories of business set up that can exist here

Procedure to set up the company

• Get in touch with a reputed JAFZA registered agent like EBS for the registration process.
• Obtain a quote for the scope of work needed for offshore company formation in JAFZA. These may account for tasks like bank account opening, attestations, nominee fees, and registration with the JAFZ authorities.
• Provide 3 options for company or trade name. The authorities will finalize one out of the 3 options.
• Finalize the mode of operation of the business -either consultancy, trade, or holding company.
• Finalize the list of shareholders.
• Fix the share capital for the shareholders of the business.
• Submit the mandatory documents like
  • Application form
  • Copy of passports of managers and shareholders
  • Each shareholder needs to furnish a utility bill from the country of residence
  • Bank reference

Why EBS?

JAFZA provides limitless opportunities to companies wishing to take advantage of the relaxed regulations of the JAFZA authorities for conducting business. However, for this, you need a registered agent to take you through the maze of paperwork, formalities, approvals, and bank account opening stipulations. EBS has the specialist competencies to ensure a successful offshore company formation in JAFZA. Sicken the cost for non-compliance is pretty steep, it makes perfect business sense to work with our consultants who will guide you in each step, while you focus on your business operations for company set up in JAFZA offshore.