OFFSHORE COMPANY FORMATION IN DUBAI

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 company is not allowed to carry out the business in the country of its incorporation in UAE. It can do the 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 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 the 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 compliace approval.

Your personal visit for signature verification is required. If a company director is a different person, his 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 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 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 UAE to process those amendments unless it’s a shares transfer. But even that can be done by your agent 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 need 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 agent, 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.

BENEFITS OF JAFZA OFFSHORE COMPANY

  • Allowed to own property in Dubai

START YOUR JAFZA OFFSHORE COMPANY TODAY

JAFZA OFFSHORE COMPANY FORMATION COST

NO VISA COMPANY

LICENSE TYPE VISAS INCLUDED TOTAL COST
JAFZA Offshore company no visa AED 18,900 $5,200 download breakdown

DOCUMENTS

DOCUMENTS

PROCEDURE

NO VISA OPTIONS

  • - Passport copy
  • - Latest utility bill as address proof
  • - CV
  • 1-2 weeks- company formation

Top 10 questions about RAK Economic Zone company

  • Can I rent an office of my RAK offshore company in Dubai?

    You cannot have an official lease contract for the office, but your registered address will be in Dubai. It will be the address of your agent. It will be mentioned in your incorporation documents and normally the agent would be able to receive your correspondence at that address. You can also lease a space in a business center, where you can have a desk, phone answering, meeting room and other related services.

  • Does offshore company have to register with Federal Tax Authority and pay VAT?

    No, offshore company is not liable for VAT, because it's business can be carried out only outside of the UAE, thus UAE VAT does not apply. It also doesn't have to be registered with Federal Tax Authority.

  • Should I pay any other TAX?

    UAE is free from income tax and corporate tax. It has only import tax 5% for the goods that you bring into the country, and VAT 5% for the trading or service transactions that happened in UAE. But since an offshore company cannot import any goods to UAE, it is exempted from import tax too.

  • What is the difference between offshore and free zone company?

    There are a few major differences:

    1. Offshore company is not allowed to do business in the UAE, but a free zone company can import goods and provide services in the territory of the UAE.

    2. Offshore company is not eligible for UAE resident visas, whereas a free zone company is usually entitled for resident visas.

    3. Free Zone company may be liable for VAT if it does business in the UAE, but offshore company never has to pay UAE VAT.

    4. Offshore company is the cheapest type of UAE corporate entity, and any free zone would always cost higher.

  • Should I renew my company? When? How much does it cost?

    Yes, offshore company has to be renewed annually. The cost of the renewal is 2 150$ including Certificate of Good Standing, which serves as a formal proof of the company renewal. Usually we deliver this certificate to the bank in order to update the records and make sure the account of the company stays active.

  • Can I get a resident visa if I have an offshore company?

    No, offshore company is not entitled for resident visas.

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