Jebel Ali Free Zone (JAFZ) in Dubai is primarily famous for providing free zone business opportunities to foreign investors. Here, companies are provided with several benefits related to free zone. But JAFZA (Jebel Ali Free Zone Authority) is not limited for provision of free zone facilities as there are opportunities for offshore companies as well available in this designated free zone. More than 15 years have now passed since the introduction of offshore businesses in JAFZA after its introduction in 2003.
The location of JAFZA offshore is quite favorable for offshore companies due to proximity of the world’s largest free zone (JAFZ) (where more than 700 companies from around the world are located) and Port of Jebel Ali (world’s largest man-made harbor). Another important attraction for JAFZ offshore is its presence in Dubai which is a business hub not only in UAE but in the whole of MENA (Middle East & North Africa) region.
Benefits of JAFZA Offshore company formation
There are multiple reasons due to which JAFZ Offshore must be the first choice for any foreign individual and corporation that want to setup offshore business in one of the world’s prime location.
- The best advantage of JAFZ offshore is its tax-free environment. Despite being known as a tax haven, several offshore jurisdictions are not completely free from tax and they apply few taxes on businesses present in these locations. But this specific free zone in Dubai is a tax-haven in a true sense as businesses incorporated in JAFZ Offshore are completely free from taxes and duties
- A minimum of two directors of any nationality is required for an offshore company. Another requirement is just a single shareholder of the company. Director’s residency in Dubai is not needed
- A secretary of any nationality is also a requirement. But a director or a shareholder can also become secretary of his/her offshore company
- Unlike businesses in mainland UAE, there is no requirement of including a local person in the business. Instead, complete foreign ownership is permitted by JAFZ
- Opening a JAFZA offshore company is simple, quick and cost-effective. It usually takes between 10 and 12 days to incorporate the business. Minimum share capital required is just AED 1
- The location of JAFZ Offshore is very business-oriented. It is especially due to the closeness of Jebel Ali Port which is the busiest port in the Middle East and the 9th busiest in the world
- Company owners are able to do business in the Middle East and anywhere in the world without any legal issue
- After registration of an offshore company, it becomes easier to open a bank account in Dubai. There is a difference between local and offshore bank account in Dubai.
- Shareholders are not required to visit Dubai for setting up a company while a meeting of directors can be held anywhere in the world
- 100% repatriation of profits is allowed for offshore companies
Rules and Regulations:
- JAFZA Offshore company registration fee is AED 10,100 and annual registration renewal fee is AED 2,500
- Offshore companies in JAFZA are not allowed to do business in the UAE
- Companies can’t carry out specific business activities including banking, insurance & re-insurance and other businesses prohibited by JAFZA
- Annual accounts must be approved by directors and the accounts will be preserved for 10 years
- Office registration is also required for JAFZA offshore companies
- General meetings must be held annually or maximum within 18 months
- Company’s name must end with “Limited”
The above-mentioned are few important points related to JAFZA offshore company. All these benefits are achievable with offshore company formation in JAFZA. For this purpose, you need to contact a formidable consultancy firm that has vast experience in Dubai and offshore business. We at RIZ & MONA Consultancy are in the Dubai business field for the past several years. We also have immense experience in offshore business in Dubai and overall UAE.