Investors across the world who are looking to conduct international trade should consider opening an offshore business in Dubai. The offshore structure of company formation offered by the Jebel Ali Free Zone Authority (JAFZA) is cost-effective, and tax-efficient and hence provides easy access to the international market with minimal administrative work. This article will help you understand how as a business you can set up your offshore business in JAFZA and how FAR Consulting Middle East officials can guide you in doing the same at minimal cost.
Discussing the advantages of forming an offshore company in JAFZA
The major advantages of the formation of an offshore business in the UAE are mentioned below:
1. Exemption from corporate taxes
2. Confidentiality and privacy
3. Gives the company a flexible and regulated structure.
4. Banking prospects and an advanced banking system
5. Possibility of collaborating with international investors
6. Possibility of hiring skilled and qualified workers
7. Having privacy and secrecy in the company assured
Offshore business formation in JAFZA: Key considerations
An offshore corporation in JAFZA refers to a legal entity formed for the purpose of conducting overseas business activities in nations apart from the UAE. These businesses make these nations appropriate for international commercial activities due to the fact that they are free of tax, full foreign ownership and confidentiality. It is important to bear in mind that all the offshore businesses that are conducted through JAFZA cannot trade in the UAE mainland.
Major factors and beneficences
- Limited Liability: Legal protection is drawn from the fact that shareholders risk only their stake in the share capital.
- Tax Exemption: No import-export taxes, income taxes or corporate taxes are payable for offshore businesses in JAFZA.
- Complete Foreign Ownership: A foreign investor does not need a local counterpart to invest in the business, and thus the investor can own up to 100% of the business.
- Confidentiality: Details about directors and shareholders are not publicly available or available to the public domain.
- No Minimum Capital Requirement: Capital structuring is also free since there is no specified minimum amount of share capital needed.
- Property Ownership: Offshore businesses in JAFZA are allowed to acquire freehold property in designated areas within Dubai.
- Bank Account Access: Concerning multiple currency banking account opening there are certain policy advantages of UAE in international financial transactions.
How to Set up an Offshore Business in the JAFZA
The major steps of offshore business set up in JAFZA has been highlighted below:
- Hire a Registered Agent: Offshore businesses that are operating in JAFZA have to appoint a registered agent that has been approved by JAFZA. The place of business of the particular agent is always the registered office of the company.
- Choose a Name for Your Business: Send the registered agent three original company names of its desired choice which should conform to the JAFZA naming policy and procedures for consideration.
- Create Legal Documents: Prepare the Memorandum of Association and the Articles of Association which are the legal documents prescribing the objects of the business and the way it will be run.
- Submit Required Documentation: Submit all relevant documents such as the Shareholder and director identification and proof of address and bank reference letters through the registered JAFZA agent.
- Create a Corporate Bank Account: To manage the company’s operational monetary transactions and to organize the financing, utilizing the assistance of the registered agent, open a corporate bank account in the United Arab Emirates.
- Obtain Certificate of Incorporation: VIA Legal incorporation is then confirmed by the issue of a Certificate of Incorporation by JAFZA upon approval.
Operational Aspects
- Business Activities: The operation of its offshore firms is allowed to operate internationally and to engage in investment and owning assets such as patents but it is prohibited for JAFZA offshore firms to operate with in United Arab Emirates.
- Office Space: The address of the registered agent becomes the address of the business; offices space in JAFZA is not mandatory.
- Accounting Records: Business organizations are required to keep proper records of account that can be stored at the registered agent’s office.
- Annual Renewal: The company registration also must be renewed each year in accordance with the JAFZA regulations through-going the registered agent.
Framework for Law and Regulation
The Jebel Ali Free Zone Offshore Companies Regulations govern the operations of JAFZA offshore businesses. These rules offer a precise legal framework that guarantees openness and adherence to global norms. Following these rules is essential to preserving the company’s reputation.
Benefits of Selecting JAFZA
- Strategic Location: Proximity to Jebel Ali Port and Al Maktoum International Airport facilitates efficient global trade and logistics.
- Robust Infrastructure: Access to state-of-the-art facilities and services supports seamless business operations.
- Reputation: JAFZA’s longstanding reputation as a leading free zone enhances the credibility of companies registered within its jurisdiction.
FAR Consulting Middle East will also help you incorporate an offshore company in JAFZA
Since business operations of the country have liberalized, international businesspeople seeking to exploit the friendly business climate of Dubai stand a great opportunity by forming an offshore company in JAFZA. Perhaps, the greatest benefits distinguishing the simplified procedure from the standard one are the complete foreign ownership and tax exemption. This platform is highly effective in terms of foreign operation management and international opportunities by being in accordance with JAFZA rules and regulations. Consult the experts at Farahat & Co. for more information and to avoid any hassle in terms of the company formation process. The experts employed by their staff are ready to assist you at any point and provide an answer to your queries. For the beginning of the formation of an offshore business entity in JAFZA call Farahat & Co. at the numbers listed above immediately.