Offshore Business Setup in JAFZA
Set up an Offshore Business in JAFZA
An offshore company is a legal business organization set up to operate outside its registered authority or the location of its ultimate ownership. There are countless jurisdictions in the world where you can set up an offshore business. However, Jebel Ali Free Zone Authority (JAFZA) stands out as among the best jurisdictions to start an offshore business company in UAE. In this article, we will explore a detailed guide to setting up Offshore Business in JAFZA.
Advantages of Opening your Offshore Company in JAFZA
You can access many benefits by beginning your offshore company in the Jebel Ali Free Zone Authority (JAFZA). However, discussing all benefits might be complex in a single article, but we have outlined the top benefits that you can obtain by setting up your offshore company in JAFZA:
- Discretion and Privacy: The JAFZA provides you with unparalleled privacy protection if you set up an offshore company. This free zone keeps financial records and personal details of your company’s shareholders and directors away from public records. In addition, you are exempt from mandatory audits, ensuring higher confidentiality.
- Non-resident status: An offshore company in JAFZA is considered a non-resident company, which means you are not permitted to conduct business activities in the United Arab Emirates (UAE) if you are an offshore business owner. This non-resident status gives advantages and flexibilities for specific investment and asset protection.
- Asset protection: Asset protection is among the significant advantages of setting up an offshore company in JAFZA. This regulation gives a secure environment for protecting wealth and assets. This protection can be beneficial for holding assets, like investments, intellectual property, or properties.
- Door to the global market: You may instantly enhance your business’s reputation by establishing a JAFZA-based offshore company that facilitates international collaboration and company growth. In addition, you can acquire the ability to open a corporate bank account in the UAE which is essential for the global financial operation and access to many currencies.
- Tax Benefits: While the UAE has introduced a Corporate Tax of 9%, you, may still set your offshore company apart from this tax because the offshore companies operate outside the nation. It presents a robust economic advantage for you.
Read More about Corporate Tax for Offshore Companies in UAE.
Documents Required to Set up an Offshore Business in JAFZA
There are a few documents that you must gather before proceeding with the steps to start your Offshore company in the JAFZA. Below are some common documents that you need while setting up your offshore company:
- Recent 6-month Bank Statement of the Company.
- Certificate of Good Standing
- Application for Certificate of Incorporation
- Passport Copy of your Company’s Shareholders
- Curriculum Vitae of Your Company’s Shareholders
- Latest Utility Bill as Proof of Residency if you are an individual shareholder
- For corporate shareholders: Board Resolution granting Power of Attorney, MOA, AOA, Certificate of Good Standing.
Besides these documents, you might need other documents based on several factors. Therefore, you should consult Flyingcolour Business Setup because our experts will give you a complete list of documents that you need to set up your offshore business in JAFZA.
What are the steps Involved in Setting up an Offshore Business in JAFZA?
You must follow some steps to effectively start your offshore company in JAFZA. Understanding these steps is essential to get an overview of the process that you need to follow. The following is the list of steps you should follow to begin your offshore business in the JAFZA:
1. Choose a Registered Agent
You should begin the process of setting up your offshore business by choosing a registered agent. This registered agent will be responsible for all actions and administration related to the Jebel Ali Free Zone Authority (JAFZA). Remember, you should work with the registered agent for connection with the JAFZA authority.
2. Choose your Company Name
After selecting a reliable registered agent for your offshore company, you should opt for a reliable company. However, submitting three potential names is the best method to avoid any delays. If your favorite name is already registered, you shouldn’t wait too long, be ready with another name.
3. Submit the Memorandum of Association (MoA) and Article of Association (AoA)
The Article of Association (AoA) and Memorandum of Association (AoA) hold significant importance for starting your offshore business in the Jebel Ali Free Zone Authority (JAFZA) as they undergo examination and verification by the authority at the JAFZA. Therefore, you must submit the Article of Association (AoA) and Memorandum of Association (MoA) to the relevant authorities.
Remember, you should include the company data, including shareholders and management team, as well as the information about the rules and regulations, in these documents. In addition, you should ensure these documents are in English.
4. Submit the Documents
Apart from a Memorandum of Association (MoA) and Article of Association (AoA), you must submit other documents we have mentioned above. However, you don’t need a trade license to start your offshore company in JAFZA, but you need a Certificate of Incorporation. Therefore, you must submit the documents mentioned above to acquire the Certificate of Incorporation to kick-start your offshore company.
5. Open your Corporate Bank Account
Once submitting the documents and complete all steps mentioned above, you should move forward to open your corporate bank account in the United Arab Emirates (UAE) in order to start your corporate business transactions smoothly.
Remember, you may begin your corporate bank account either in the UAE or an international bank with the currency of your choice. Therefore, you should carefully select the appropriate bank for your corporate bank account.
How can Flyingcolour Business Setup help you?
Setting up an offshore company in Jebel Ali Free Zone Authority (JAFZA) is an excellent way to start a business operation in the UAE without having a physical presence. Apart from this, you can obtain countless benefits by starting your offshore company in JAFZA. Flyingcolour Business Setup can help you to start your company in JAFZA. Plus, our experts will guide you on the right path to set up an offshore company in this jurisdiction.
To learn more about Setting up an offshore company in JAFZA, book a free consultation with one of the Flyingcolour team advisors.
Please note that this article was published on 16/07/2024 by the federal policies and updates at the time of writing. For the latest info please talk to our consultant.
