Offshore Companies in the Jebel Ali Free Zone Background and Developments

The concept of offshore was first introduced in Dubai in late 2001 but it took concrete shape on January 15, 2003 when Jebel Ali Free Zone Offshore Companies Regulations 2003 came into force. Jebel Ali Free Zone Offshore Companies Regulations 2003 laid down detailed rules and regulations for establishing offshore companies in JAFZA. An offshore company is defined as a non-resident company having a corporate legal entity. Jebel Ali Free Zone Offshore Companies Regulations 2003 allows the formation of an offshore company by individuals or a corporate body. Distinctive benefits of Jebel Ali Offshore Companies include:

No requirement to acquire office premises. Easy and simple procedure for registration. Minimum operating cost. Highest asset protection. 0% tax environment. Opportunity to invest in property and stocks worldwide. Unrestricted flow of capital. Transfer of assets, stocks, etc. 100% foreign ownership. No minimum capital requirement. Bank accounts can be opened and operated in the name of the offshore company subject to the requirements and approval of such local and international banks where such an account can be opened. In addition to the above, upon registration of a Jebel Ali Free Zone Offshore Company, you are permitted to open a branch office of the same outside the UAE with office premises and employees subject to the approval and requirements of the proposed branch jurisdiction. Distinctive features & Restrictions of the Jebel Ali Free Zone Offshore Company Shareholders

A minimum of one shareholder is required. Corporate shareholders are permitted. Shareholders will decide capital structure of the Company. No fiscal minimum capital requirements have been stipulated. Bearer shares are not permitted. Different classes of shares are not permitted and shares have to be fully paid when allotted. A shareholders meeting should be conducted periodically (at least once in a year). Every offshore company shall maintain minutes of all proceedings at general meetings. The Register of Members shall be open for inspection by any member of the offshore company. If inspection is refused, the company commits an offence. Currency Where previously the denominated currency of the share capital was to be stipulated and paid up in UAE Dirhams, the capital can now be denominated in U.S. Dollars. Directors & Company Secretary A minimum of two individual directors are required to be appointed and corporate directors are not permitted to be appointed...