Dubai Offshore at Glance

Dubai Offshore at Glance December 27, 2019

In 2003, Dubai Ports and Customs Authority issued the Regulation “On Offshore Companies” and authority of Jebel Ali got authorized to register offshore companies in Dubai.

The Jebel Ali Offshore Company is regulated by Jebel Ali Free Zone Authority Offshore Companies

Regulations of 2003. It’s been designed in a manner that can hold freehold property in some projects, namely: properties on the Palm Islands and other projects by Nakheel, Emaar and Dubai Properties.

By this, we can make out activities permitted to these offshore structures that are mainly realization of purchase, sale and ownership of property rights to real estate in Dubai.

Going forward, the Land Department issued a circular which prohibited all offshore companies to own property in Dubai, except those which were registered at JAFZA Offshore. This circular is solely

applicable to new registrations for property ownership at the Land Department from 1 stJanuary, 2011.

These offshore companies are restricted to carry out any activity in the territory of the UAE but are allowed to engage in commercial activities outside the UAE. The restricted activities are:

                 

Insurance, Banking,

Financial,

Professional Services, Consulting,

Intellectual Property, Media,

Security,

Publishing,

Advertising,

Movie Production, Gambling, Casino,

Game & Win, Advisory,

Real Estate, Military

and Education

Though, this offshore company has some similarities with the offshore companies from other

jurisdictions, there are also some substantial differences, i.e. restrictions on bearer shares, nominee

shareholders and nominee directors are not permitted by Jebel Ali Offshore Company. The shareholders will need to personally visit JAFZA for signing incorporation documents.

Following are the differences between offshore companies and free zone company in Jebel Ali:

Offshore company in Jebel Ali Offshore Company

Other Free Z

Minimal capital required

AED10,000

AED50

Paid-up capital

No

Yes*

Office requirement

The legal address of the offshore company is the address of the registration agent.

Office manda

License for business in Jebel Ali Free Zone (export, import, trading, manufacturing, etc)

No

Yes

Provision of residence visas for shareholders/directors of the company

No

Yes

Bank account in the UAE

Yes

Yes

100% corporate and personal income exemption

Yes

Yes

100% import and export tax exemption

Yes

Yes

100% foreign ownership

Yes

Yes

100% repatriation of capital and profit

Yes

Yes

Value added tax

Exempt

North

Local sponsor requirement

No

No

Trade

Internationally allowed

Direct to rest

You are just 7 steps away to get your company registered in JAFZA Offshore.

1. Contact a reliable registered agent either who is authorized by JAFZA or has access to such agents.

2. Ask agent for the service quote. For the services listed below: a) Company Registration b) Bank account opening

c) Any special attestations needed

3. Provide registered agent 3 names suggestion for the proposed company out of which they will advise with the name availability.

4. Finalize the activity of the offshore company.

5. Decide the share capital.

We usually recommend AED 10,000/-

6. Decide the appointed shareholder, director and Manager.

Minimum 2 directors required.

7. Fulfill the document requirements

For individual “shareholder” applicants: 1. Passport copies

2. Utility bills or last 6 months Bank statement for proof of residential address 3. Brief resume of each applicant

4. Two passport size photographs

For corporate applicants: The following documents are required duly notarized in the country of origin and attested by the UAE Embassy/Consulate:

1. Copy of Certificate of Incorporation

2. Original Certificate of Good Legal Standing

3. Copy of Memorandum & Articles of Association

4. Original Board resolution approving investment in the offshore company along with Power of Attorney 5. Original Certificate of Incumbency showing list of the shareholders, directors and the name of the

ultimate beneficial owner (in case of nominee shareholding only) of the company duly certified by the company registrar

6. Passport of the shareholder/s / director/s of the company

For each of the director / manager / secretary of the proposed JAFZA offshore company:

1. Passport copies

2. Utility bills for proof of residential address

3. Brief business background / resume of each applicant

Time frame to incorporate a JAFZA offshore company From the date of submission of the incorporation documents, it takes 4-5 working days for the JAFZA Criminal Investigation Department to complete its due diligence investigation of the proposed Shareholders, Directors and Secretary.

Are you looking to register your Offshore Company in Dubai?

We provide fast and reliable Offshore Company formation services. Our Offshore Company formation fees are highly competitive. Moreover, we are recognized by JAFZA offshore as a ‘Best offshore

consultant’ 2013 and ‘Best Strategic Partner’ 2017. Please get in touch with us for professional

assistance. You can reach us at email incorporation@nrdoshi.ae or use the contact us form on this website. First consultation is FREE. By

Dhruti Thakkar Consultant – Corporate Services and Compliance