What You Need To Know When Planning To Setup A Business In Freezone?
Aspects like growth stability, tax relaxation, sophisticated business laws and many others, draw attention of various investors to set up a business in UAE. The free zones of Dubai are the areas looked for starting a company. Although the benefits offered here have made the freezone company formation in Dubai quite popular amongst every person seeking for running his own business, but the procedure for incorporating a business here can be complex. So before thinking of a freezone company formation in Dubai, you must take the help of expert business advisors who can guide you throughout the procedure.
In this article we shall be taking a look at the various things that you must know before forming an offshore company in Dubai
What are Free zones in Dubai?
For encouraging trade and inward investment, the government of UAE introduced over 30 free trade zones, a majority of which are in Dubai, each of which is governed by an independent Free Zone Authority (FZA).
Advantages of setting up a Dubai free zone company
- Setting up a free zone company in Dubai allows you a 100% ownership of the company, even if you are a foreign investor. Unlike other sort of companies, where you are required to look for a local Dubai citizen who owns 51% of your company.
- Your free zone company will entirely be exempted from tariffs that last for several years.
- Each of the free zone company possesses an excellent international quality infrastructure as well as a business friendly environment. These companies get benefit from the government of UAE directly.
Disadvantages of setting up a Dubai free zone company
- You are not allowed to expand your business in other UAE markets if you own a free zone company. You have to remain confined in the business you have started.
- The specific free zone in Dubai is designated to a particular business industry and therefore you cannot operate your business beyond that scope.
Adam Global is a reputed and experienced business advisory company in Dubai, the experts from where can assist you to form a company in a Dubai free zone.
Ways to Make the Best of Jafza Offshore Companies
One of the most popular of free zones in Dubai is the Jebel Ali Free Zone or Jafza. This economic zone is situated in the Jebel Ali area at the western end of Dubai, and quite near to Abu Dhabi. It was in 1985 that the economic operations commenced in this free zone with standard size office units. Since then, many investors became interested in forming Jafza offshore companies and today its facilities include large industrial units. It is the world’s largest free zone where people from all around the world want to setup and run a profitable business.
If you too are interested in starting a Jafza offshore company, then you must consider the following key points before initiating.
- Shareholders of Jafza offshore company
A Jafza offshore company requires at least 1 share holder, either a corporate or an individual shareholder. It is him who decides the capital structure of the company.
- Directors as well as Secretary of Jafza off shore
At least 2 directors are required to form a Jafza offshore company and only individuals can sustain the position of director. The secretary of the company can hold the director’s position.
- Criminal Investigation Department (CID) Approval
The directors, shareholders and the secretary of the company has to pass from CID screening to show that none of them are involved in a criminal activity.
- Confidentiality of Jazfa offshore
The details of shareholders, directors and secretary are kept secret and not revealed to the public.
Procedure of Jafza offshore company formation
- For registering the name of the Jafza offshore company, make sure it ends with ‘Limited’’ also register the apt address of the company.
- It is sufficient to define the purpose or the nature of the Jafza offshore company formation also give a brief company detail.
- Also show the amount of share capital proposed by the company..
- Provide the full names and as well as the address proof of each of the shareholders and the directors.
- Provide the MOA as well as AOA of the Jafza company.
Adam Global is the best of advisory firms in Dubai that can help you set up a Jafza offshore company.