Jebal Ali Free Zone Authority (JAFZA) is located in Dubai. It is one of the world’s largest and fastest growing Free Zones Authorities. The main advantage of having a JAFZA Offshore company in Dubai is that this type of companies can Purchase a FREE HOLD property in Dubai.
Unlike an operating company that is formed with a business license, an offshore company gets a certificate of incorporation, along with the memorandum and articles of association as its constitutional documents. This means that the company cannot carry out business activities in the UAE, and as such its primary function (as is the case with most offshore companies) is to be a holding vehicle of assets for its parent shareholders. Given the fact that rules are different across countries, there is no objection if the company wishes to conduct business in a foreign jurisdiction, as that is outside the purview of UAE law.
The Advantages of Offshore UAE Company Formation:
1. 100% foreign national ownership.
2. No requirement of local sponsor or local service agent.
3. The offshore company is exempted from all corporate and income taxes.
4. UAE Bank Account opening.
5. Easy transfer of capital and profits.
6. Full repatriation of the profits and capital are allowed.
7. Fast incorporation.
8. Company can own real estate properties at approved areas by the Authorities.
9. Complete anonymity and privacy.
The shareholders of the company may be natural and/or legal persons (other entities), and often multinational companies incorporate such entities that are in turn owned by international legal entities. For the purpose of holding freehold assets, Jafza offshore companies require an NOC from the Dubai Land Department, which is relatively easily obtainable. This then allows the company to acquire, dispose off and rent assets in these jurisdictions.
Additionally, the offshore entity can acquire shares, and other assets in onshore companies, subject to the necessary approvals being received from the relevant jurisdiction. In all cases, administrative functions of the Jafza offshore are handled by an appointed agent.
Go for an offshore structure if
- You just need a UAE bank account to invoice international clients and receive payments.
- You want to do a Share Acquisitions under your offshore company name.
- You want to own assets under the offshore company name for Inheritance Taxes avoidance.
- You want to have a virtual office in Dubai.
We , Hallmark International Auditors, Jafza Offshore agent liaises with the Authority itself for any changes and amendments that are required to company documents, as well as with external stakeholders (such as banks, cross jurisdictional bodies, etc) for normal business practices. As offshore companies are not permitted to have registered addresses, the registered address of the said company is that of the registered agent.
Current owners of such offshore entities as well as those who are potentially considering the formation of such entities would be well advised to contact their legal representatives to properly evaluate the needs and thereby optimally form such holding entities.