The Jebel Ali Free Zone Authority (JAFZA) recently published new Regulations for Jebel Ali Offshore Companies, which will replace the current regulations that were introduced in 2003. The implementation date for the new Regulations is currently unknown, but will be announced soon. The new Regulations will introduce a number of benefits for international investors using Jebel Ali Offshore Companies.
New Rights
- Residence visas. Members of an Offshore Company (such as Directors and Shareholders) can now apply for a residence visa if the company owns a property in any of JAFZA’s freehold areas.
- Increased permitted activities. An Offshore Company can now own a property in any of the designated freehold areas within the UAE and use the property as its registered office. It can also own a stake in another operating company onshore in the UAE.
- Conversion and redomicilation. An Offshore Company can now convert to a Jebel Ali Free Zone company, which can hold a licence to conduct business in the UAE. In addition, foreign companies can now redomicile as a JAFZA Offshore Company, or an Offshore Company can transfer to a foreign country.
Enhanced Governance
- Multiple share classes. An Offshore Company can create different classes of shares, for example to allocate voting rights or rights to dividends.
- Streamlined director requirements. An Offshore Company will now only require one director instead of two. Corporate directors are now also permitted.
- Resolution requirements. A minimum of 75% of shareholders are now required to pass a resolution, increased from the previous requirement of a simple majority.
Trident Trust’s experienced UAE corporate services team is able to assist with all aspects of JAFZA offshore and onshore company formation and administration, as well as the formation of companies in all UAE free zones. Please do not hesitate to contact us to discuss the new regulations and how we may assist you.