Business Setup in Jebel Ali OffShore

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Jebel Ali Free Zone (JAFZA) and Offshore Company Formatio

Jebel Ali Free Zone (JAFZA), located in the western part of Dubai, is the largest free zone in the MENA region, offering a strategic platform for international trade and business. Established in 1985, JAFZA began with standard office and warehouse units and later expanded in 1990 to include light industrial units. It remains the most reputable and respected free zone in Dubai, providing businesses with an excellent environment to grow and succeed.

JAFZA also offers the unique opportunity to establish offshore companies, commonly referred to as JAFZA offshore companies. These entities are designed to facilitate international trade and offer several benefits, including:

0% Taxation: Offshore companies in JAFZA enjoy a tax-free environment, making it a cost-effective solution for businesses.
No Paid-up Capital Requirement: Unlike other jurisdictions, JAFZA does not mandate a paid-up capital to set up offshore companies, reducing the initial financial burden.
Broad Range of Business Activities: JAFZA offshore companies are not limited by industry or activity, providing flexibility for businesses to engage in multiple sectors.
Property Ownership: JAFZA offshore companies were among the first offshore entities allowed to hold real estate in Dubai, making them popular among property investors.

Steps in Setting Up Your Offshore Company in JAFZA

Creative Zone offers end-to-end assistance, making the complex process of establishing an offshore company in JAFZA straightforward. Here are the key steps to get started

Determine Your Company Name & Activities
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The first task is to choose a company name and define its activities. The name must be suitable, non-offensive, and free from religious or political sensitivities.

Select a Registered Agent
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JAFZA mandates that offshore companies engage a registered agent. The agent will act as an intermediary between your company and JAFZA authorities, handling documentation and compliance matters.

Prepare the Memorandum of Association (MOA) & Articles of Association (AOA)
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Draft the MOA and AOA, which outline the legal framework of your company. These documents are subject to review by JAFZA and must be in English.

Submit the Relevant Documents
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In addition to the MOA and AOA, submit all other required documents for company registration and trade license approval.

Open Your Corporate Bank Account
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After completing the previous steps, you can open a UAE corporate bank account, which is essential for managing business transactions.

Key Benefits of JAFZA Offshore Company Formation

Global Trade Opportunities

JAFZA offshore companies can trade internationally, making them ideal for global operations.

No Audits or Shareholder Meetings

 Offshore companies are not required to hold shareholder meetings or conduct external audits, simplifying governance.

Registered Agents

Offshore companies must be incorporated through a registered agent, and the agent’s office will serve as the company’s registered address.

JAFZA offshore companies provide a highly flexible, tax-free structure that suits international business needs while maintaining the ability to own property in Dubai. To form a JAFZA offshore company, businesses must ensure compliance with regulations and maintain proper accounting records.

Requirements for Setting Up a JAFZA Offshore Company

Establishing a JAFZA offshore company requires submitting specific documents and following procedural guidelines based on the chosen business structure and activity. Below are the essential requirements:

Application for Certificate of Incorporation: Submit a completed application form to initiate the process of incorporation.
Passport Copy of Shareholders: A clear copy of the passport for each shareholder is mandatory.
Curriculum Vitae (CV) of Shareholders: A detailed CV of each shareholder outlining their professional background and qualifications.
Recent 6-month Bank Statement of the Company: For companies, a recent bank statement covering the past six months is required to verify financial standing.
Certificate of Good Standing: This document is necessary to prove that the company or individual shareholder is compliant with legal requirements in their home country.
Proof of Residency (for individual shareholders) :  A recent utility bill must be provided as proof of residency for each individual shareholder.

For Corporate Shareholders

Board Resolution: A formal board resolution must be provided, awarding the Power of Attorney to the representative setting up the offshore company.
Memorandum of Association (MOA) and Articles of Association (AOA): Copies of these documents are required to outline the company's legal framework.
Certificate of Good Standing: This is also required for corporate shareholders to confirm their current legal status.

Note: JAFZA authorities may request additional documents during the setup process, which could impact the overall costs, including the JAFZA company setup cost and JAFZA trade license cost.

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Frequently Asked Questions

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