Jafza Offshore Company Formation: All You Need to Know

The Government of Dubai established the Jebel All Free Zone in 1985. It covers over 100 square kilometers and is centered on the world’s largest artificial port. In the past, companies incorporated in the JAFZ were required to have a physical presence in Jebel Ali. The idea of setting up offshore companies was first introduced in Dubai in 2001, but it got a proper structure on January 15, 2003, with the JAFZA Offshore Company Regulations 2003. By then, JAFZA Offshore Company formation in Dubai implemented comprehensive rules and regulations. 

Generally speaking, an offshore company in Dubai is a non-resident entity incorporated in the Jebel Ali Free Zone in the United Arab Emirates. JAFZA Offshore Company Regulation 2003 permits individual customers to establish offshore companies. 

JAFZA Business Setup Benefits

Having a company located in JAFZA offers many benefits to business owners. Due to its geographical location, the Jebel Ali Free Zone is close to Dubai International Airport and Al Maktoum Freight Airport and has access to most markets around the world. With the Jebel Ali Free Zone, both airports can operate with a single customs service, allowing hassle-free air cargo operations. 

Here are some of the benefits of offshore company formation in the UAE: 

• Fully furnished offices, business parks, warehouses, showrooms, and traders’ markets 
• No corporate taxation (for 50 years), personal income taxes, and import/reimport duties 
• Reliable and inexpensive electricity supply 
• Profits and capital are fully repatriated 
• Employing foreigners is permitted 
• Tax-free (VAT-free) 
• No restrictions on currencies 

Features of Jafza Offshore Company 

Ownership: The only jurisdiction that permits offshore corporations to lawfully own real estate in Dubai is Jafza. Offshore firms can own shares in both free zone and onshore enterprises, according to the free zone authorities (LLC).

Documentation & Classifications: Attestations are not required in the United Arab Emirates, Bahrain, Saudi Arabia, and Qatar. It is not necessary to classify commercial activity in specific categories in a free zone. However, it is a good option for investors who wish to set up a bank account for keeping all of their financial transactions in a single category.

Shareholding: The minimum shareholder requirement for offshore companies in Jafza is one. A company can also be a shareholder in the jurisdiction. However, the company’s partners need to be present at the time of registration. 

Directorship: For an offshore company to be eligible for offshore status, it must have two directors. Free zones, however, do not allow company directors. On the public register, the names of the directors will also not be published. 

Secretarial: It is essential for offshore companies to have a secretary. A director can also serve as a secretary. 

Jafza Offshore Business Setup in Dubai: Process

In Jafza, it is necessary to establish an offshore company through the following steps: 

• Choose a company name
• Apply online or Contact MMF (Business consultant)
• Obtain and submit the necessary documentation
• Send the draft of your Memorandum of Association (MOA) and Articles of Association (AOA)
• Create an offshore bank account 

Want To Set up Your Offshore Company? 

Any entrepreneur looking for business formation in Dubai should establish an offshore company with a local business consultant as they are fully aware of the legal procedures. 

The MMF Business Setup Company is one of the most prominent in the UAE. We have built and managed businesses for entrepreneurs for decades now. We will oversee the entire process of setting up your company. From registering your business to obtaining approvals from the authorities, we will guide you every step of the way. 

Learn more about offshore company formation in Dubai with our legal corporate advisers. Give us a call on +971 56 190 5995, and we will assist you as soon as possible.