Benefits of Dubai Offshore Companies at JAFZA

Benefits of Dubai Offshore Companies at JAFZA

We proceed immediately to the list of the main advantages obtained when registering a company in the Free Zone of Dubai JAFZA:

    • Lack of corporate tax;

This advantage applies not only to the Free Economic Zone, but also to all the Emirates. To date, the UAE does not have income and corporate taxes. In this situation, the exception to the rule will be oil production and banking. If you open a company in one of these areas, you still have to pay corporate tax. Also, there is an exception when working with alcohol and tobacco. In this case, you will have to pay a municipal fee.

    • A foreign investor can own 100% offshore companies;

Unlike local companies, owners of offshore companies may have a 100% capital shares, and the governing law does not apply to them. One of the reasons why offshore companies attract foreign investors is that local companies (outside the territory of FEZ) require that at least 51% of the shares belong to a local sponsor. Accordingly, the maximum amount of shares for a foreign investor may be only 49%.

    • The registration procedure is relatively quick and inexpensive;

It will take only 3-4 working days after submitting all the documents, and the company in Dubai in JAFZA will be successfully registered. Regarding the cost, the registration of a company in JAFZA clearly stands out from the costs of opening another type of company outside the Free Economic Zone in Dubai.

    • Low level of operating expenses;

Offshore companies have the right to conduct their activities through agents, for example, law firms or accountants, which must be approved by the registrar. Also, through them it is possible to contact the company itself. For offshore companies there is no need to rent premises or arrange employees in the UAE.

     Equity;

The presence of share capital is a completely optional condition, regardless of the registrar's requirement for the introduction of capital associated with the type of activity.

    • No restrictions on the transfer of shares;

You can use a written document to transfer shares of an offshore company. Also, it is worth noting that there are no restrictions on the acquisition by the company of its own shares.

    • Liability limited;

The shareholders of an offshore company are liable, which directly depends on and corresponds to the number of shares in the property. The name of the offshore company at the request of regulations should end with the word "limited".