New JAFZA Offshore Regulations
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 are not implemented yet but it will be announced soon.New regulations with several benefits for international businesses and investors. Some key factors with the new regulations are as below;
Article 31.2, members of an Offshore Company (such as Directors and Shareholders) may apply for a residence visa if the company owns property in any of JAFZA’s freehold areas, and the approval of such application is subject to the Authority’s eligibility requirements.
- Re-domiciliation of Company
Article 111, Foreign Companies can be re-domiciled as a JAFZA offshore Company, or Offshore Company be transferred to a foreign company.
Article 118.1, an offshore company can be converted to a Free Zone Company, to be able to conduct business and trade in the UAE.
Article 33.1 An offshore Company will now only require one Director instead of two. Nominee Director is also allowed.
- Variation in Rights of Shares
Article 19, an offshore company may subject to the consent of the Registrar, can create different classes of shares, by providing the different classes of shares in its articles of association.
A minimum of 75% of shareholders are now required to pass a resolution, increased from the previous requirement of a simple majority.
According to the New Offshore Regulations, an Offshore Company is also permitted to hold a lease of property for use as its registered office in any of the designated freehold area in the UAE, own a stake in another operating company within the UAE and own property in one of the designated freehold areas. For more information towards offshore company and company Set up with Jebel Ali Free Zone Authority, please feel free to contact our Corporate Services team at firstname.lastname@example.org.