Incorporation of entities in JAFZ
Click here to view table.
Registered Agent Requirements:
All actions and administrative duties, that require dealing with JAFZ Authority in relation to the offshore company, are performed through the registered agent on behalf of the shareholder(s). The registered agent will also liaise with the JAFZ company registry to pay the annual renewal of registration fee for the offshore company. As offshore companies are in practice not permitted to have their own registered address, the registered address of the offshore company is that of its registered agent.
Licensing and Permitted Activities:
Unlike an operating company with a business licence that is incorporated in the UAE, whether incorporated in JAFZ, the UAE mainland jurisdiction, or other free zones, the JAFZ offshore company is not issued with a business licence at the time of incorporation. Rather, the offshore company only receives a certificate of incorporation. Other corporate documents for the offshore company will include a memorandum and articles of association. Because a business licence is not issued, the offshore company cannot conduct any commercial activity with persons within the UAE. However, as commercial activities conducted outside the UAE are not subject to UAE law, the offshore company may conduct commercial activities outside the UAE.
Whilst the JAFZ offshore company is not permitted to conduct any type of business or activity in the UAE, it does, subject to JAFZ Authority’s approval and the Dubai Land Departments’ current policy, retain the right to acquire freehold property within specific designated areas in Dubai.
A JAFZ offshore can also act as a holding company by way of acquiring shares in UAE mainland companies and other free zone companies, as well as, subject to the applicable banks policy, open a bank account, pledge its shares, and secure loans and other finance facilities.