An offshore foundation company is one legal entity that is established outside of the founder's country and created under civil law. There is a proper structure for an offshore foundation company. The founder starts the company, which can be an individual or any legal entity. These types of companies provide all the benefits of any other offshore company.
JAFZA Jebel Ali Free Zone Authority is one of Dubai's most popular free zones. JAFZA offshore foundation company is commonly used for wealth management and asset protection purposes. Therefore a JAFZA offshore foundation company is suitable for asset protection, philanthropy, and inheritance planning. This guide will discuss the foundation of JAFZA offshore company formation.
What is a Foundation Company?
A Foundation Company is a legal entity used for multipurpose management and is a mixture of a corporation and an offshore trust. An offshore foundation company in JAFZA is appropriate for asset protection that includes family. As mentioned earlier, the foundation company comes under civil law that originated from the European mainland. A JAFZA Foundation company does not have any members or shareholders. The foundation company is lawfully registered under the UAE Companies Act.
The Characteristics of a JAFZA Offshore Foundation Company
There is a basic structure of an offshore foundation company in JAFZA which includes the following:
- Founder: The founder establishes the foundation company and provides the foundation charter highlighting the company provisions. The founder can be an individual or a legal entity like an IBC (International Business Company) or LLC (Limited Liability Company). The founder of the company transfers the assets.
- Council member: The minimum number of members is three, consisting of a council member. This council is responsible for fulfilling the tasks mentioned in the charter. However, the board of directors is not responsible for performing fiduciary duties towards the beneficiaries.
- Charter: The charter is a public document highlighting the foundation company's assets, liabilities, and purpose.
- Regulations: The regulations are privately issued documdocumentsioning the rules-regulations of the foundation company and the members and beneficiaries of the company.
- Protectors: The protector is basically the director of the foundation company, who looks after all the activities and assets of the company.
- Beneficiaries: The beneficiaries are the individuals who will be bebenefit the assets kept in the foundation company. They can only be held responsible for ownership interest once the company's laws release the assets.
Types of Foundation Companies in JAFZA
Six types of offshore foundation companies are there in JAFZA, which are listed below:
- Public foundation company
- Private foundation company
- Charitable foundation company
- Corporate foundation company
- Family foundation company
- Community foundation company
Advantages of a JAFZA Foundation Company
The benefits of an offshore foundation company in JAFZA are similar to the other offshore companies, which are as follows:
- The foundation company provides confidentiality and privacy to the assets.
- JAFZA provides favorable tax regimes for any offshore company formation.
- An offshore foundation company is a great way to asset protection.
- One can diversify their wealth by putting it in an offshore foundation company in JAFZA.
- The offshore foundation company JAFZA is more flexible in its operations.
- The offshore foundation company has more longevity for assets compared to any other form of offshore company.
How to Start a Foundation Company in JAFZA?
Follow the below-mentioned steps for offshore JAFZA foundation company:
Research the market properly
In the first step, research more about the jurisdiction and the benefits of sparks establishing the offshore foundation company.
Contact a Business Professional
In the next step, contact a legal expert who has experience in JAFZA offshore company formation process. They will make you understand the process of opening an offshore foundation company in JAFZA.
Draft a Business Plan
Make the proper business plan mentioning all the beneficiaries, the expenses, planning, and business techniques you want to use in the foundation company.
Submit the Documents
You must submit all the relevant documents to our business experts for an offshore foundation registration process in JAFZA. For the most part, the accompanying docs documentsired are passport copies of the individuals included and the utility bills. Obtain the registration endorsements from the respective authorities in JAFZA.
How Can We Help?
Business Setup Worldwide is a business consultancy encouraging clients to start offshore businesses, which will benefit them. Our business advisors make sure that you get your offshore foundation company registered in JAFZA at an affordable cost. Contact us if you have any queries; we'd be happy to help.