The Emirate of Ajman situated on the coast of the Arabian Gulf extending over a distance of 16 kms between Sharjah & Umm Al Quwain is located on the western coast of United Arab Emirates. It covers an area of 259 sq km and was formed by the Al Nuaimi tribe, well known for their bravery, courage and wisdom who migrated to this region from Oman around 1775.
Ajman Free Zone, established in 1988, was granted autonomous status under the Amiri decree no. 3 of 1996 issued by H.H. Sheik Humaid Bin Rashid Al Nuaimi, Ruler of Ajman. Ajman Free Zone Authority has been named as the sole regulatory agency for Free Zone in the Emirate.
The free zone authority introduced the registration & formation of offshore companies under Ajman Offshore Free Zone Offshore Companies Regulations of 2014.
Characteristics of an offshore company registered in the AFZA are as follows:
|Shareholders:||Minimum of one shareholder is required. Corporate shareholders are permitted. Shareholders will decide capital structure of the company. Single class of shares permitted and bearer shares are not permitted.|
|Directors:||A minimum of two directors are required and corporate directors are not permitted. Individual shareholder can be a director as well.|
|Secretary:||Every company must have a secretary. Director can be a secretary as well.|
|Restrictions on Name & Activity:||Names must end with Limited.|
|Local Requirements:||Company must appoint an approved registered agent.A registered agent's office in the UAE can be used as the registered office of the offshore company.|
|Timescale:||Registration of the AFZ Offshore will take approx. 3 days. Shareholders or their authorized attorneys need to visit in person to sign in presence of AFZA officials for incorporation of the company.|
|Annual Reporting:||Every company is required to keep financial books and prepare auditor's reports within 3 months by the end of every financial year. These must be approved by the shareholders. The accounts / audit report however, do not need to be filed with the Authority.|
|Taxation:||AFZA Offshore pays no taxes in UAE.
AFZA Offshore cos are non-resident companies and hence not entitled to tax residency certificate and also can not avail benefits under any Double Tax Avoidance Agreements.
|Confidentiality:||Details of shareholders & directors need to be filed with authorities but are not available for public record.|
|Limitations:||Ajman offshore cannot:
|Company Renewal:||Renewals for AFZA Offshore companies falls every anniversary date of incorporation. Failure to do so result in penalties. In the event the company is not renewed within 6 months of the renewal due date, the company will be struck off from the registrar of the companies.|
|Documents Required:||Individual's KYC Docs:
Whilst every effort has been made to ensure that the details contained herein are correct and up-to-date, it does not constitute legal, tax or other professional advice. We do not accept any responsibility, legal or otherwise, for any errors or omissions.