Investors eyeing offshore company formation in the UAE have three options: Ajman offshore, JAFZA offshore and RAK ICC. However, among the three options of offshore business setup in the UAE, Ajman offshore stands out from the rest by providing business activities that are generally not provided by other offshore authorities including regulated activities such as financial services. Apart from the activities, the cost of company formation in Ajman offshore is reasonable and reporting requirements are minimal as compared to RAK ICC and JAFZA offshore. The investors are required to appoint registered agents in Ajman offshore to set up a company at affordable costs.
Let’s look into the details of why Ajman is a better option in terms of activities and minimal reporting requirements compared to offshore business setup in JAFZA or RAK ICC.
1. Even Regulated Activities are Permitted
Investors initiating the process of business setup in the UAE often face a key stumbling block in the form of business activities. Investors who wish to initiate offshore company formation in JAFZA or RAK ICC will be disappointed if their chosen business activity falls under the category of regulated activities such as financial services. Some of the unique activities that are permitted for company formation in Ajman offshore are:
- 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
2. Easy Approval Regime is a Blessing for Foreign Investors
The process of business setup in the UAE is characterized by the legal prerequisites that the investors should meet to register their companies. The mainland business setup in the UAE requires the investors to secure external approvals from the concerned ministries for high-risk activities such as real estate services, consultancy services, construction, legal activities etc. Although the requirement of approvals are minimal in the free zone and offshore company formation in the UAE, many free zone & offshore authorities either don’t permit high-risk activities or ask for external approvals or require additional compliances to meet the AML & CFT Laws in the country.
Offshore company formation in RAK ICC doesn’t offer the investors more options of regulated business activities and the authority ask approval for the available special activities. Similarly, JAFZA offshore company setup is focused on trading activities and the investors are left with few or no choices when it comes to activities such as commodity trading or any other regulated financial services. In contrast, offshore company formation in Ajman allows the investors flexible options regarding high-risk activities. The Ajman Free Zone Authority doesn’t demand special approvals while setting up an offshore company even if the activity is categorized as high-risk.
3. Minimal Reporting Requirement is a Plus
Confidentiality was the biggest feature of offshore company formation in the UAE until the Economic Substance Regulations (ESR) came into force. Apart from the reporting requirement as per the ESR, Ajman offshore company formation demands minimal reporting requirements from the foreign investors who mainly make the offshore investment to secure freehold real estate properties in the UAE. ESR notification and ESR test requirements apply to investors who register an offshore company in Ajman. However, in general, the Authority doesn’t ask for other requirements such as AML/CFT etc. Incorporating an offshore company in Ajman is much flexible and easier compared to other options of offshore company formation UAE such as RAK ICC and JAFZA.
4. Recognized by the Banks
Opening a bank account is one of the biggest challenges faced by a foreign investor during the process of company formation in the UAE. The challenges increase when it comes to the offshore business setup in the UAE due to the due diligence requirements post the AML/CFT regime. However, Ajman offshore is recognized by the banks in the UAE and the investors need not worry about the bank account opening procedure. By forming an offshore company in Ajman, foreign investors can enjoy credibility among the business circles and with the banks.
Other Advantages of Offshore Company Formation in Ajman
Registering an offshore company is highly beneficial for foreign investors given the unique reasons discussed in this article. However, some other common benefits are worthy to be mentioned. They are
- 100% ownership, no local partner required
- Personal income tax exemption
- Exemption from other taxes
- Secure transfer of profits and capital
- World Class infrastructure
- No audit requirement
- No restrictions on foreign currency
- No need to rent any office space
- Directors can be appointed
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 characterized by its minimal reporting requirements. However, to incorporate an offshore company in Ajman, the investors need to appoint a registered agent such as Jitendra Business Consultants (JBC). JBC is one of the best registered agents in the UAE with years of experience in registering offshore companies in Ajman, JAFZA and RAK. JBC’s business setup consultants in Ajman assist the investors in completing all the requirements of Ajman offshore company registration. The investors can use JBC’s address as their official address while incorporating an offshore company in Ajman. With JBC’s assistance, registering an offshore company in Ajman is easier and will be completed in a few days without any hassle.