Foreign investors looking to incorporate an offshore company in the UAE can consider Ajman as the top option on their list. By opting for the Ajman company formation process, the investors can have access to a wide range of benefits such as zero taxation, 100% ownership, a vast number of activities, minimal reporting requirements, and the freedom to select high-risk activities, including financial services. The investors, however, need to incorporate their offshore entities in Ajman only through registered agents in the UAE.
Regulating Authority for Ajman Offshore
Ajman Free Zone Authority (AFZA) controls and regulate the process of Ajman offshore company formation. Even though AFZA was launched in 1988, it started providing offshore company formation services in 2014. The free zone authority is located in Ajman, which is a strategic place with easy connectivity through land, air and sea. Close proximity to investment hubs such as Dubai and Abu Dhabi is an added advantage for the investors. Furthermore, Ajman is one of the most cost-effective emirates in the UAE that making doing business easier for foreigners.
Types of Activities Permitted
Foreign investors often express interest in Ajman offshore company formation due to the unique activities provided by the authority. Unlike other offshore registries in the UAE, foreign investors can select high-risk activities as well. However, the investors need not undergo a burdensome approval process to carry out such activities. The following are the list of activities foreign investors are allowed to conduct:
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- Credit & Finance Bank
- Currencies & monetary Broker
- Financial Advisory Services
- Financial Instruments Bidding
- Financial Investments
- Financial Investment Consultancies
- Brokerage Services for Crude Oil and Oil Commodities trade Transactions
- Commodities Trading
- Commodity Exchange Portfolio Management
Prominent Features of Ajman Offshore Company Formation
The following are the most prominent features associated with Ajman offshore company formation:
1. Number of Directors
Ajman Authority mandates that the investors need to appoint at least one director for the offshore company. However, the number of directors should never exceed five. The investors are, however, not allowed to appoint a corporate entity as director of the company. An individual can serve as both the shareholder and director of the offshore company registered in Ajman.
2. Requirements for Shareholders
Shareholders of Ajman offshore companies can decide the authorised share capital of the company. Shareholders are allowed to invest in other companies established in the UAE.
3. Appointment of Secretary
Offshore companies registered in Ajman should appoint at least one secretary who will oversee the secretarial and administrative obligations of the entity. It is important to note that a director can also assume the role of the secretary. Consult with the registered agents in the UAE to know further about the requirements.
4. Appointment of Registered Agents
Investors can set up offshore companies in Ajman through registered agents. Registered agents in the UAE can help the investors through all the steps of company incorporation and administrative requirements.
5. Registered Office Requirements
Investors need to provide the address of a physical office to establish an offshore company in Ajman. They can use the office address of the UAE registered agents as the company’s registered address.
6. Restrictions on Activities
In general, no offshore entity is allowed to carry out any business activities in the UAE. Offshore companies incorporated in Ajman are also required to abide by this rule.
7. No Trade License
A Free zone or mainland company established in the UAE operate with a trade license. However, UAE offshore companies are issued a certificate of incorporation.
8. Ability to Open Bank Accounts
It is rather easy to open a corporate bank account in the UAE under Ajman offshore as the reporting requirements are not stringent. Moreover, Ajman offshore enjoys a good reputation among banks and business circles, and this makes the process easier.
Reporting and Compliance Requirements
The UAE free zone, mainland, and offshore companies that conduct the nine relevant activities fall within the scope of Economic Substance Regulations (ESR). As a result, Ajman offshore companies are also required to meet their ESR obligations. The companies should conduct an annual assessment to determine whether they have conducted the relevant activities such as Banking business, Insurance business, Lease-Finance business, Investment Fund Management business, Headquarters business, Shipping business, Holding Company business, Intellectual Property (IP) business, Distribution & Service Centre business.
Companies that conduct any one of these relevant activities need to meet the ESR obligations such as ESR notification filing, ESR Report submission and ESR test. Apart from the ESR, Ajman offshore companies need not comply with any other reporting requirements. The regime here is less stringent compared to other offshore registries such as RAK ICC and Jebel Ali Free Zone Authority (JAFZA) Offshore. Contact the registered agents in the UAE to get assistance on the reporting requirements.
Registered Agents for Ajman Offshore Company Formation
The process of offshore company formation in Ajman is the most viable option for foreign investors. Ajman offshore offers a wide range of activities that require no special approvals. Unlike other offshore companies in the UAE, Ajman permits a host of high-risk business activities which are not permitted in JAFZA or RAK ICC. Also, offshore company formation in Ajman is characterised by its minimal reporting requirements. However, to incorporate an offshore company in Ajman, the investors need to appoint UAE registered agents such as Jitendra Business Consultants (JBC).
JBC can assist the investors in completing all the requirements of offshore company registration. The investors can use the registered agent’s address as their official address while incorporating an offshore company in Ajman. JBC has a team of highly qualified business consultants who can assist foreign investors in obtaining a certificate of incorporation without any delay. Our company formation services in the UAE also include assistance with filing ESR and other reporting requirements. Consult with JBC today to start the incorporation procedures without any hassle.