JAFZA Holding Company
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JAFZA Holding Company
In the context of the business environment of Dubai, establishing a JAFZA Holding Company has become an attractive option for many entrepreneurs and investors. JAFZA, known as a leading business hub in the UAE, offers a framework that supports the formation and operation of holding companies. With its modern infrastructure, favorable tax regulations, and strategic location, the region has emerged as a focal point for companies looking to expand their reach and secure their investments.
A JAFZA Holding Company not only provides a platform for global business operations but also ensures asset protection, simplified ownership structures, and access to a network of international markets. If you want to consolidate your business interests or even to explore new opportunities, JAFZA makes for a conducive environment in which a business gets the means to grow and thrive.
Secure your assets with a JAFZA Offshore company
Ideal for holding businesses and properties with tax efficiency and confidentiality.
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Let Elevate Accounting & Auditing guide you through the seamless conversion process and set up your JAFZA Holding Company with ease.
Requirements in Forming Offshore Company
| Shareholders | Share capital | Company Name |
|---|---|---|
| One or more shareholders are required, which can be legal or natural persons. There are no restrictions on nationality*. | The share capital is denominated in United Arab Emirates Dirham (AED). There is no minimum share capital requirement. | All permitted** names must be followed by the suffix "Limited". |
| Directors | Secretary | Zero Tax |
| Two or more directors, who must be natural persons, are required. However, a natural person shareholder can also be a director. There are no restrictions on nationality*. | One secretary is required, who must be natural person. However, a director or natural person shareholder can also be a secretary. There are no restrictions on nationality*. | No corporate, capital gains, capital repatriation, or any other tax is levied on the offshore company. |
| Office Space | Licensing | JAFZA Registration & Renewal Fees |
| The registered office space of the JAFZ offshore company is that of its registered agent. | A JAFZ offshore company is not issued with a license, only a certificate of incorporation. Therefore, it cannot conduct business with persons in the UAE. | AED 10,100 for registration and AED 2,500 for annual renewal of registration. |
- All natural persons undergo a screening conducted by the UAE Criminal Investigations Department (CID). Subject to the CID report and the UAE’s current immigration policies, certain individuals and nationalities are barred from acting as shareholders or company officers.
- Offshore company names may be rejected where they include or allude to an association the following fields of work: Insurance, Banking, Financial, Professional Services, Consulting, Intellectual Property, Media, Security, Publishing, Advertising, Movie Production, Gambling, Casino, Game & Win, Advisory, Real Estate, Military, and Education.
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 license in the UAE, a JAFZA offshore company does not receive a business license upon incorporation. Instead, it is issued a certificate of incorporation along with corporate documents like a memorandum and articles of association. Without a business license, it cannot conduct commercial activities within the UAE but is allowed to operate internationally, as these activities fall outside UAE jurisdiction. However, subject to approval from the JAFZA Authority and the Dubai Land Department’s policy, it can acquire freehold property in designated areas of Dubai.
A JAFZA offshore company can also function as a holding company by acquiring shares in UAE mainland companies and other free zone entities. Additionally, it can open bank accounts, pledge shares, and secure loans or financial facilities (depending on bank policies). This flexibility makes it an attractive option for investors who want to manage and grow their assets.
Benefits of Establishing a Holding Company in JAFZA
- Tax Advantages: One of the most appealing aspects is the favorable tax environment. Holding companies in JAFZA can benefit from exemptions on income, corporate, and withholding taxes.
- Asset Protection: A holding company acts as a buffer that shields the assets of the parent company from liabilities incurred by its subsidiaries.
- Risk Management: By distributing investments across multiple subsidiaries, business owners can minimize the impact of any single company’s poor performance.
- Confidentiality: Establishing a holding company can also contribute to enhanced privacy for business owners.
Types of Holding Companies in JAFZA
In JAFZA, companies have the flexibility to choose from different forms of holding companies, each with its own set of guidelines and requirements. The two main options available are:
Offshore Holding Company
An offshore holding company in JAFZA is structured to own shares in various businesses without engaging in day-to-day operations. This option does not require a minimum paid-up share capital, making it a popular choice for investors who are looking for a lean operational structure.
Freezone Holding Company
A freezone holding company offers more flexibility than a standard investment holding entity, allowing it to engage in additional business activities. It does indeed require a minimum share capital of AED 50,000 and a physical office, although it provides the advantage of operating as a business while managing investments. For those considering a Dubai Free Zone Company, this structure integrates into the broader company setup landscape in Dubai.
Your Business Future in JAFZA
Establishing a JAFZA Holding Company offers an organized, efficient approach to managing investments and protecting business assets in one of the most strategically important regions of the UAE. The perfect mix of favourable tax treatment, strong asset protection, and a comprehensive business environment makes this option attractive for investors looking to expand their operations.
Connect with us to learn more about the process and how you can take advantage of the opportunities offered by a holding company in JAFZA.
Open a bank account for your JAFZA Offshore company in Cyprus, BVI, Dubai, and other key jurisdictions.
Frequently Asked Questions
A holding company in JAFZA is a legal entity that owns shares in other companies but does not engage in business activities itself. It is used for asset protection, tax benefits, and investment management.
Some benefits include tax exemptions, asset protection, reduced business risks, and enhanced confidentiality. JAFZA provides a favorable environment for managing investments efficiently.
The cost varies depending on the type of holding company, required licenses, and office space. It is best to consult with experts like Elevate Accounting & Auditing for a cost estimate based on your needs.
An offshore holding company can own shares but cannot operate in the UAE, while a freezone holding company can engage in business activities within JAFZA and requires a minimum share capital and office space.
A Jebel Ali Free Zone License is required for legal operations. The type of license depends on the business structure and activities allowed under JAFZA regulations.
Yes, many investors establish both a Dubai Free Zone Company and a holding company for better business structuring and investment management within the JAFZA Business Hub in UAE.
How Elevate Accounting & Auditing Assists
At Elevate Accounting & Auditing, we have extensive experience guiding businesses through the complex web of JAFZA Company Formation. Our team works closely with clients to manage documentation, address regulatory requirements, and clarify the financial aspects, including an understanding of the JAFZA company setup cost.
Our experts are well-versed in obtaining the necessary Jebel Ali Free Zone License and can offer advice on how to best organize your business structure. Our approach is designed in such a manner that you get the information needed to make informed decisions.