JAFZA Offshore Company Setup

The United Arab Emirates has turned out to be an international business center in recent years. The businesses have various success stories and are continuously growing in the market. The development of the business world in UAE, business owners and investors are looking forward to establishing different companies in different jurisdictions. The business statistics also support the business market and provide a favourable business environment. 

Among these business-friendly jurisdictions, the Jebel Ali Free Zone Authority (JAFZA) stands out as one of the most favourable choices for offshore company formation. This article will consider the key points and benefits of JAFZA offshore company formation. 

What is JAFZA?

Jebel Ali Free Zone (JAFZA) is a free economic zone located in Dubai, UAE. It is a free zone and an integral part of UAE’s business hub. JAFZA is a huge platform for trade and connectivity, one of the best competitive locations for a JAFZA offshore company formation.

This zone offers numerous benefits and has been highly successful in the market. According to statistics of 2023, JAFZA has hosted over 9,500 companies from over 130 countries, including Fortune Global 500 firms, and supports the employment of more than 135,000 people in the UAE. 

Reasons for Establishing an Offshore Company Setup in JAFZA

JAFZA is an attractive and favourable destination for a company formation due to certain factors which are essential for entrepreneurs to know. The factors that make it useful for a JAFZA offshore company formation are as follows –

  • Business Environment.
  • Legalities.
  • Necessities.

JAFZA is the largest free zone in UAE. It is location is a game changer for businesses because it is located near the Jebel Ali Port, which is the busiest port in the Middle East. This also helps in accessing the largest market of over two billion people from Africa to Asia. It caters to many business activities, sectors and industries of the market. The process, legalities and requirements of a JAFZA offshore company formation are simple and can be completed quickly. 

There are various other benefits that are major reasons for an offshore company setup in JAFZA. 

What are the Activities Permitted in Dubai for the JAFZA Offshore Company Formation?

Dubai has formed an empire that allows all workspaces to explore and flourish. Whether it's any jurisdiction, they allow several activities that are regulated, flawless, and inclusive to benefit the stakeholders. 

The JAFZA offshore company setup cost is comparatively affordable, and that’s why Dubai is one of the ideal business spaces. The emirate permits various activities, and they are mentioned below –

a) International Trading:

An offshore company setup in JAFZA can engage in international trading activities that facilitate the import and export of goods and services.

b) Investment Holding:

Offshore Companies in JAFZA are often used for holding investments like shares in other companies and movable and immovable properties.

c) Asset Protection:

Offshore Companies are established for activities like the protection of assets with real estate, intellectual property, financial assets, etc.

d) Professional Services:

When it comes to providing professional services, whether it’s any activity/sector/industry like legal, consultancy firms, accounting, management, etc., the JAFZA offshore company formation permits it as a business activity.

e) Other Activities:

There are various other activities like owning a property, e-commerce activities, international business activities, wealth management activities, shipping-related activities, etc., for a JAFZA offshore company setup.

Steps of JAFZA Offshore Company Formation

There are certain steps for setting up a company according to the compliance standards of the authorities and necessary approvals. The below steps must be followed by the companies to maintain professionalism and functioning of business activities –

i) Business Activity:

The business owners must choose the type of business activity and business model to form a company. This selection must be according to the nature and scope of the business, and the entrepreneurs must take care of the suitability as well.

ii) Reserve a Name:

All kinds of companies need an appropriate name because it signifies the identity of the company. The name must be in such a way that it defines the purpose, objectives and business goals of the company. It must meet the standards of the company.

iii) Documents:

The business owners must prepare the necessary documents for an offshore company setup in JAFZA. To function with certain business activities and obtain approvals and licenses, an entrepreneur must submit the following documents - 

  • Copy of the Passport.
  • Necessary Visa Pages for all the Shareholders.
  • Business Experience Form (for all proposed shareholders).
  • Suggestion of Five Names for the New Company.
  • Original Proof of the Residence of the Shareholders.
  • Business Plan.
  • Bank Reference Letter of the Shareholders.
  • Unified Identity Number of all the Shareholders.
  • Passport Size Photos.

iv) Obtaining Necessary Visas:

The company must apply for employee visas. This is essential because the employees can easily reside and work in any part of the country other than their home country.

v) Compliance and Renewal:

The company must make sure that the employees and members are following all the required laws issued by the government. They must pay fees, follow regulations and meet other requirements of registration, licensing, etc.

vi) Open a Bank Account:

The company must create a bank account after the JAFZA offshore company formation to maintain business accounts, transparency, and manage business transactions.

Benefits of JAFZA Offshore Company Setup

The benefits mentioned below will help entrepreneurs concentrate on major points, such as - 

  • 100% Corporate
  • 100% Foreign Ownership
  • Personal Income Tax Exemption
  • Abundant and Inexpensive Energy
  • 100% Repatriation of Capital and Profit
  • 100% Import and Export Tax Exemption
  • One-Stop-Shop Administration Services
  • Easy Availability of Inexpensive Workforce
  • Access to over 1.5 billion Consumers with Increasing Demand.

Read the benefits of JAFZA offshore company in detail.

Services Provided for JAFZA Offshore Company Formation

It is highly beneficial to get in touch with a consultancy firm while starting a company because their guidance helps in the setting up process and follow-up of legal laws. Let’s explore the business services provided by Commitbiz for the JAFZA offshore company formation.

a) Company Registration:

Commitbiz will assist the company with the required JAFZA offshore company registration. We'll give all the information for the registration procedure to the JAFZA authorities.

b) Articles of Association:

Our firm will provide services related to the Articles of Association. We'll take care of the preparation and required details. 

c) License:

Licensing is another essential factor for forming a JAFZA offshore company. We will help you get the required licenses for your company.

d) Visa Requirements:

Acquiring visas for the employees working for your company. This will allow them to live and work in any place appropriate for the business. Under our services, we also help with visa requirements. 

Therefore, an offshore company setup in JAFZA offers a mixed balance of favourable benefits, a friendly tax environment, and business-friendly policies that are a welcoming approach to business individuals and investors in the world. This jurisdiction contributes to the economy, caters to various business activities and engages foreign investments. Businesses wish for success, profits, and endless international opportunities, and JAFZA shines as a popular jurisdiction in the thriving lands of the UAE.

Entrepreneurs, with the help of a consultancy firm like Commitbiz, must consider forming an offshore company setup in JAFZA to build a reputation, achieve success, and earn profits. Contact us and form your JAFZA offshore companies now.

FAQs

How many shareholders are required for JAFZA offshore?

A minimum of 1 shareholder is required.

Are corporate shareholders permitted in Dubai offshore?

Yes, JAFZA allows corporate shareholders.

Is it possible to incorporate business in the Jebel Ali offshore remotely?

No, the physical presence of the partners is a must.

How many directors should a Dubai offshore company have?

A minimum of 2 directors are required.

What activities are not allowed for an offshore company in JAFZA?

The company cannot carry out banking, consultancy, insurance advertising etc.