JAFZA Restricted Offshore Activities

JAFZA Restricted Offshore Activities

The United Arab Emirates has always been known for its innovation and flexibility attracting millions of tourists and business investors.

With the continuous implementation of science and technology, the UAE has been able to grab high-end Foreign Direct Investment (FDI) that has uplifted the nation to its next level.

Just like the company formation process in the onshore areas, the Government has also permitted the business investors to invest in the offshore business activities in Dubai. 

The Jebel Ali Free Zone Authority (JAFZA), is regarded as an offshore ground and is also called Dubai (Offshore) that provides numerous tax benefits and an incredible business climate to the investors.

However, carrying out business in any tax-haven jurisdiction also brings in a particular set of restrictions. This guide highlights constraints that Dubai Offshore holds for business investors. 

If you are planning to invest in Dubai Offshore Business, then this guide is a must-read for you.

Restrictions on JAFZA Business Activities

As per the rules and regulations, a JAFZA Offshore company holds the following limits for the business investors to proceed ahead:

  • To directly carry out the business process in the region of the United Arab Emirates
  • To keep any lease of a property in the UAE
  • Proceed ahead with any of the banking business
  • Carry our insurance, re-insurance or brokerage activities
  • Carry out any activities that are prohibited by the relevant authority from time to time

Now, setting up a Dubai Offshore (JAFZA) company also brings in particular limitation, which includes:

  • The allowance of bearer shares
  • The company is not allowed to rent the local premises in any situation
  • Activities such as banking or brokerage are not allowed
  • Existing business entity shareholders should visit JAFZA Authority physically

How to Start An Offshore Business in JAFZA?

To proceed with the establishment of an offshore company in JAFZA, one has to take care of the following essentials:

  • The business investors need to appoint an approved and certified business expert
  • One needs to be clear to hold the relevant set of documents that needs to be submitted to the authorities that involve:
    • Identity proof of the shareholder(s)
    • Address proof of the shareholder(s)
    • A valid certificate of good standing
    • Copy of Memorandum of Association (MOA)
    • Copy of Articles of Association (AOA)
    • Board of Directors resolution
    • Certificate of Incumbency
    • Passport size photo of the business investors
  • Once the documents are held, they are to be presented to the business advisors, which undergo the verification process carried out by the relevant authorities.
  • Once approved, the license gets issued, after which the business investors can carry out the offshore activities at ease.

By now, you must have understood that the setting up of an Offshore Company in JAFZA involves multiple steps that involve legal proceedings. It is important to note that these legal activities are to be carried out in an error-free way to speed up the process.

Most business investors prefer to take the help of certified experts who can help them to carry out the process at ease. Here are the Core Reasons for Hiring an Offshore Business Consultant, which are essential for a business investor or owner to understand.

Business Setup Worldwide has been standing as one of the top ten business consultants in the UAE, which has been a guiding force for business investors to transform their business ideas into reality.

Since our inception, we have been helping numerous business investors to set up their businesses across various business locations at a global level. The incorporation proceedings turn out to be simplified and transparent, and our business investors are well-versed with the entire process to provide tailored solutions suiting your business needs.

In case you are looking forward to establishing your offshore business in JAFZA, feel free to have a word with our experts. Contact us today-we’d be glad to assist.