JAFZA or Company Setup in Jebel Ali Offshore

Key Attributes of JAFZA Offshore Company

1. Shareholders:

   A minimum of one shareholder is required for a JAFZA offshore company registration. Corporate shareholders are permitted. Shareholders will decide the capital structure of the company and can have different classes of shares.

2. Directors:

   A minimum of one director is required for JAFZA offshore company registration, and Corporate Directors are permitted.

3. Secretary:

   A secretary is a must for for a JAFZA offshore company. The director can also become a secretary.

4. Beneficial Owners:

   All companies registered in JAFZA are required to maintain a register of Ultimate Beneficial Owners, and the same is required to be filed to JAFZA Authority.

5. Restrictions on Name & Activity:

   The name of a JAFZA Offshore company should end with Limited. The following words and their associated activities cannot be used – Assurance, Bank, Building Society, Chamber of Commerce, Chartered, Co-operative, Fund, Imperial, Insurance, Municipal, Mutual Fund, Royal, Consultants, and Trust.

6. Local Requirements for JAFZA Offshore Company:

   A company registered in JAFZA Offshore must appoint an approved registered agent. A registered agent’s office in the U.A.E. or the Jebel Ali Free Zone can also be used as the registered office.

7. Timescale:

   The registration process for JAFZA offshore company will take around 7 to 8 daysafter approval from the compliance department, shareholders or their authorized attorneys need to visit in person to sign the papers in the presence of JAFZA officials for JAFZA Offshore company incorporation.

8. Annual Reporting :

   JAFZA offshore companies are required to prepare accounts for not more than 18 months beginning on the date of the Offshore Company incorporation or, if the Offshore Company has previously prepared a profit and loss account, beginning at the end of the period covered by most recent account. Accounting records should include detailed transactions and accurate financial statements. Also, the underlying documentation such as invoices, contracts and all other relevant documents about accounts records, including business transactions, should be maintained for 10 years with their Registered Agents at the Registered Office.

   JAFZA offshore companies should undertake to maintain and arrange for the inspection and submission of any relevant documents and records as determined by the Registrar and per The Jebel Ali Free Zone Authority Offshore Companies Regulations 2018. Failure to respond to any of such requirements as determined by the Registrar will result in sanctions and or penalties as applicable.

9. Economic Substance Reporting:

   Companies and establishments that are involved in ‘relevant activities’ in the U.A.E. are required to submit economic substance notifications six (6) months after the financial period and economic substance reports twelve (12) months after the financial period to the regulatory authority in accordance with the provisions of the Cabinet Resolution, which stipulates the submission of these notifications.

10. Taxation:

    Companies registered in JAFZA Offshore pays no corporate taxes in the U.A.E. However, if it has a taxable supply in U.A.E., V.A.T. may be applicable. JAFZA 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.

11. Confidentiality of JAFZA Offshore Company:

    Details of shareholders & directors and U.B.O.’s need to be filed with authorities but are not available for public record.

12. Limitations of JAFZA Offshore Company:
    Company registered in JAFZA offshore cannot:
    1. carry out business (or provide services) with a UAE based customer / supplier
    2. have a physical office in UAE
    3. sponsor UAE residence visas for employees / directors / shareholder
    4. not entitled to tax residency certificate