The Jebel Ali Free Zone Authority (JAFZA) established the Jebel Ali Free Zone Offshore Firms Regulations in 2003, allowing offshore companies to be established in the Emirate of Dubai's Jebel Ali Free Zone. This allowed multinational businesses to establish offshore organizations in Dubai and Jebel Ali Offshore in accordance with international offshore legislation.
These jurisdictions were created to allow for efficiency and ease in global offshore locations, as well as to provide non-resident corporations with a legal entity that is well-known among international financial authorities. Dhanguard will tell you more about Jafza with help of this blog.
Why should you Register an Offshore Company in Dubai?
Due to its distinctiveness, offshore status, tax benefits, liberal government rules and regulations, and political and economic stability, offshore company formation in Dubai, one of the fastest expanding investment hubs in the United Arab Emirates, is a dream comes true for foreign investors.
Apart from this, there are a variety of reasons why investors go to Dubai to Establish an Offshore Corporation, including
- Asset Security
- In operations, complete anonymity, confidentiality, and privacy are required.
- Control and business activities are simple.
- All types of local taxes are exempted (personal, corporate, professional)
- Profit maximization and tax minimization are two of the most important goals in business.
- There is no duty to complete audit reports.
- There is no requirement for a minimum amount of capital.
- Investment safety is paramount.
Read more :-What are the Numerous types of Audits in UAE?
Formation of the JAFZA Offshore Company
As previously stated, the Jebel Ali Free Zone Authority allowed the registration of special status offshore firms or non-resident companies in Dubai that had a corporate legal body and shareholders who were people or corporate bodies.
Jebel Ali Offshore Features and Regulations
Features and Regulations of Jebel Ali Offshore Jebel Ali Offshore Regulations have been framed by the Jebel Ali free zone authority to provide the convenience and efficiency of global offshore locations to business owners investing in Dubai offshore, while also maintaining a high repute with international financial authorities, which has acted as a critical determinant in taking the Dubai offshore on the path to success.
- An offshore business has all of the rights and powers of a natural person.
- There is no requirement for a minimum amount of money.
- There are no bearer shares or differential classes of shares allowed, and all shares must be completely paid when allotted.
- There is no requirement that the capital be deposited in a bank.
- A minimum of two Directors is required.
- Every offshore business should have a Secretary (a UAE resident) who can also serve as a Director.
- It is permissible to have 100 percent foreign ownership.
- A regulatory structure that is efficient and free of taxes and duties.
- The ability to open a corporate bank account in Dubai with a degree of flexibility.
- The Company must appoint a registered agent (legal firms, auditors, consultants) from the approved list of registered agents maintained by JAFZA / Dubai.
What Is It About Jebel Ali Offshore That Is So Exceptional?
Over 40 countries have Double Taxation Avoidance Agreements (DTAA) with the UAE and Dubai.
The United Arab Emirates is neither an overseas territory nor a country that is reliant on another.
Owners of offshore companies are permitted by law to own or have an interest in properties in Dubai.
Directorship and Ownership of Stock
Shareholding
- A minimum of one shareholder is necessary.
- A minimum of two directors is required.
Directorship
Any firm registered in JAFZA Offshore or Dubai Offshore is subject to the following restrictions
- No offshore corporation in Dubai or JAFZA is allowed to do business with UAE residents.
- No offshore corporation in Dubai or JAFZA is permitted to engage in banking activities.
- Insurance-related business shall not be conducted by any Dubai Offshore or JAFZA Offshore entity (as an insurance broker, reinsurance or insurance company or insurance agent)
Limitations of Dubai Offshore
- Dubai Offshore Bearer Shares are not subject to any restrictions.
- The company is unable to rent local space.
- The company is unable to engage in business operations such as banking, insurance, consulting, and advertising.
- The stockholders should travel to JAFZ / Dubai.
What are the Requirements for forming an Offshore Business in Dubai?
Requirements are as follows
- The authority receives a visit from shareholders.
- Minimum number of stockholders is required.
- Minimum number of directors is required at least 1
- A resident secretary in the UAE
- Capital stipulation minimum
- The company's capital might be any quantity and any denomination.
- Deposit of funds in a bank is not required.
- 'Limited' is a name suffix (e.g., ABC Holding Limited)
- Profit repatriation is a possibility.
- Documentation is required (Individual shareholding)
- Letter of recommendation from a bank (latest)
- Original proof of residence (latest)
- Copies of passports
- The stockholders' résumé (profile)
On completion of papers, it takes about 6-7 working days to form a Dubai offshore company.
Dhanguard for Offshore Company Formation in Dubai
Dhanguard is a recognized firm that assists international entrepreneurs in forming offshore companies in the Dubai jurisdiction. We examine our clients' business demands and recommend that they form an offshore company in Dubai if it appears to be a good fit for their international business needs. Our business development team works to preserve our clients' assets by ensuring free money repatriation and zero taxation, as well as lowering their obligations and ensuring their business growth.
Extensive domain knowledge enables us to comprehend our clients' specific requirements and to provide them with a trouble-free and customer-friendly working environment. We function as our clients' registered agent in JAFZA / Dubai, assisting them with:
- Obtaining a certificate of incorporation
- Registering a business with the registrar of businesses
- Opening a bank account with several currencies
- Forming the Memorandum and Articles of Association, as well as Registration Forms
- Obtaining a PO Box for the office premise in Dubai
- Licensing renewal
Conclusion
We handle legal and documentation procedures, provide strategic business inputs, provide cutting-edge amenities, and handle your offshore company creation in Dubai from start to end so you can focus on growing your business. Please contact us if you need help forming an offshore business in JAFZA or Dubai; Dhanguard experts will be happy to help.