JAFZA offshore company formation

Overview of JAFZA offshore jurisdiction 

JAFZA offshore is a type of an offshore company registered by a Jebel Ali Free Zone in Dubai.

Until recently it was the only offshore company which could hold real estate property in Dubai. This feature made JAFZA offshore company setup highly demanded by property owners.

The situation has changed now and the property can be registered under a cheaper entity RAK offshore company.

Office

JAFZA offshore cannot have any office or facilities in the UAE rented under its name. 

As any offshore company, it has a legal address of its Agent.

Such a company is not allowed to carry out the business in the country of its incorporation in the UAE. It can do business on the international scale only.

Jebel Ali offshore can have a UAE bank account. The account can normally be managed online; most of the banks have an internet banking facility. Some banks provide debit cards as well.

Company activities

Business activities for JAFZA offshore company formation are not grouped or limited to any specific category. It means that the company can have a broad variety of activities.

It is still recommended to group activities and name them precisely. It will help when you apply for a bank account.

JAFZA offshore company setup costs

If you are setting up an offshore, JAFZA company setup cost will slightly differ depending on the registered Agent you choose.

The average fee is about 18,000 AED (4,930 USD).

JAFZA offshore company formation

Jebel Ali offshore company formation can be done only by a registered Agent. It means that you cannot do it directly with the government authority by yourself.

The registered Agent can be a business setup company in Dubai who will take care of the paperwork and the registration process.

Jebel Ali offshore company is usually registered within 1-2 weeks depending on compliance approval.

Your personal visit for signature verification is required. If a company director is a different person, their visit is also mandatory.

Note: offshore company registration in Dubai requires 2 directors only in case it’s a JAFZA offshore. Any other companies in different UAE authorities need only 1 director.

Resident visas

JAFZA offshore company, as any other offshore company in the UAE, is not eligible for UAE resident visas.

In case you need a resident visa, you have to consider other options of business setup in Dubai in free zones or the mainland. You can check business setup in UAE in any emirate as long as your company is registered at least in a free zone.

License renewal

JAFZA offshore company renewal is done by your registered Agent. Your personal presence is not required.

You only need to transfer the funds to the Agent, who will do the formalities. Upon renewal, you will receive a Certificate of good standing, which serves as a formal proof that your company is active.

The price of the renewal is usually about 11,000 AED (3,015 USD) depending on your Agent.

Amendments

Amendments, just like setup and renewal, can be done only through the Agent.

Standard amendments include:

• Shares transfer
• Activity change
• Company name change
• Director change and others

You do not have to be in the UAE to process those amendments unless it’s a shares transfer. But even that can be done by your Аgent if you provide a Power of Attorney to sign on your behalf.

JAFZA offshore license liquidation

If you want to close your JAFZA offshore company it is advisable to do a formal procedure of liquidation through your Agent.

Some people keep their offshore companies non renewed after a while they get struck off the register automatically.

However, if you need proof that your company has been closed and has no liabilities, an official liquidation needs to be done.

It would cost about 8,000 AED (2,200 USD) and take about 1 month. Formalities can be done by your Аgent, but you need to make sure that:

• You return original company documents to your Agent
• You close corporate bank account

Dubai business setup experts opinion

JAFZA offshore company is a time-proven instrument of doing an international business.

JAFZA is not a monopolist of registering companies for Dubai property holding purposes anymore, but it remains a stable and popular place of UAE business registration.