Offshore Business Setup in Ajman

Ajman is one of the seven emirates that make up the UAE. It is a strategic location for businesses to set up their operations due to its proximity to the ports and airports in Dubai and Sharjah. Ajman has emerged as a popular destination for offshore business setup due to its liberal economic policies, ease of doing business, and low-cost business setup solutions.

Ajman offshore business setup provides foreign investors with a cost-effective and efficient way to set up a business in the UAE. This type of business setup is ideal for entrepreneurs who want to expand their business globally and enjoy the benefits of offshore tax planning.

Step by Step Process for Ajman Offshore Business Setup:

Ajman offshore is a popular choice for businesses that want to establish an international presence without being physically located in the United Arab Emirates. Offshore Company Formation in Ajman Free zone offers a range of advantages, including reduced taxes, simplified compliance, and the ability to own property in the UAE. Here are the steps for Azman Offshore Business Setup:

Step 1: Choose a business activity

The first step is to decide on the type of business activity you want to undertake. Ajman offshore allows businesses to engage in a wide range of activities, including trading, investment, holding company, and asset management.

Step 2: Choose a company name

You need to choose a unique company name for your Ajman offshore company. The name should not conflict with any existing trademarks or company names in the UAE.

Step 3: Submit documents

For Ajman Offshore Company Formation, you need to submit the following documents:

• Completed application form
• Passport copy of shareholder(s)
• Address proof of shareholder(s)
• Company name reservation certificate
• Business plan (optional)

Step 4: To Obtain Ajman Offshore Business License

Once you have submitted the documents, you can obtain an offshore license from the Ajman offshore authority. The license will enable you to conduct your chosen business activity in the UAE.

Step 5: Open a bank account

To operate your business, you need to open a bank account in the UAE. You can choose from a range of local and international banks, but it is advisable to select a bank that has experience in dealing with offshore companies.

Step 6: Obtain a residence visa

Ajman offshore allows business owners to obtain a residence visa. The visa enables them to live and work in the UAE and provides them with access to government services and benefits. The process of obtaining a residence visa can take several weeks and requires you to submit various documents, such as your passport and proof of income.

Step 7: Lease an office space

To establish a physical presence in the UAE, you need to lease an office space. Ajman offshore companies are not allowed to have a physical office within the UAE, but they can lease a virtual office or a shared office space.

Step 8: Register for VAT

If your Ajman offshore company engages in taxable activities, you need to register for VAT. The standard rate of VAT in the UAE is 5%, and businesses are required to file VAT returns every quarter.

Step 9: Comply with local regulations

Ajman offshore companies are required to comply with local regulations and laws. This includes maintaining accurate financial records, filing annual reports, and renewing their licenses on time.

Step 10: Engage a local agent

Finally, you need to engage a local agent to act as your representative in the UAE. The agent will assist you in obtaining licenses, permits, and visas and will also provide you with guidance on local regulations and laws.

Key Features of Ajman Offshore Companies:

1. Modern Legislation: Ajman offshore companies operate under contemporary legal frameworks, ensuring regulatory compliance and ease of business operations.

2. Zero Taxes: Offshore companies in Ajman are exempt from corporate and income taxes, enhancing financial efficiency and profitability.

100% Ownership by Foreigners: Foreign investors have complete ownership control over Ajman offshore companies, providing flexibility in management and decision-making.

3. Single or Multiple Directors: Companies can have a single or multiple directors, offering versatility in corporate governance structures.

Ownership of Shares in Local Companies: Ajman offshore companies can own shares in local companies, facilitating investment opportunities and strategic partnerships.

4. Zero Paid-up Capital: There are no requirements for paid-up capital, reducing initial financial obligations for company formation.

6. No Accounting and Audit Requirements: Offshore companies in Ajman are not subject to mandatory accounting and audit procedures, minimizing administrative burdens and costs.

7. No Limitations on Nationality: There are no restrictions on the nationality of shareholders, directors, or employees, fostering inclusivity and diversity in corporate environments.

8. Conduct Business Outside the UAE: Ajman offshore companies are permitted to conduct business activities outside the UAE, enabling international expansion and market access.

9. Bank Accounts in the UAE and Abroad: Offshore companies can open bank accounts both in the UAE and abroad, facilitating financial transactions and global operations.

10. No Limitation on Capital Expatriation: There are no restrictions on the repatriation of capital, allowing investors to transfer funds freely without constraints.

11. Registered Address in the UAE: Ajman offshore companies must maintain a registered address in the UAE, ensuring legal compliance and facilitating communication with authorities.

Benefits of Establishing an Ajman Offshore Company:

1. Ajman Free Zone: Positioned within the internationally respected Ajman Free Zone, providing a favorable business environment.

Swift and Cost-Effective Registration Process: Ajman offers the most budget-friendly free zone registration process in the UAE.

2. Efficient Registration Timeline: The setup of an Ajman offshore company typically takes 2 to 3 working days, ensuring a quick and efficient registration process.

3. Global Banking Access: Establishing an Ajman offshore company grants access to operate bank accounts within the UAE or internationally, facilitating global financial transactions.

4. Confidentiality Maintained: Shareholders’ and directors’ information remains private, ensuring confidentiality in business operations.

5. Tax-Free Environment: Ajman offshore companies enjoy the benefit of zero taxation, providing a tax-free environment for businesses.

6. 100% Repatriation of Capital and Profits: Ajman offshore setups allow for the 100% repatriation of capital and profits, offering financial flexibility.

7. Complete Foreign Ownership: Ajman company formation allows for 100% foreign ownership, providing control and autonomy to foreign investors.

8. No Physical Office Requirement: An optional physical office presence within the UAE for an Ajman Offshore Company, offering flexibility in business operations.

9. No Minimum Paid-Up Capital: There is no obligation for paid-up share capital in Ajman offshore company formation, reducing initial financial requirements for investors.

Ajman Offshore Company Requirements:

• Shareholders:
  • Minimum one shareholder required; corporate shareholders accepted.
• Capital Structure:
  • Shareholders determine the company’s capital structure.
• Directors:
  • At least two directors required; no provision for corporate directors.
• Dual Role:
  • Individuals can hold both director and shareholder positions.
• Secretary:
  • Offshore company must have a secretary, who can also be a director.
• Physical Presence:
  • Shareholders or authorized attorneys must be physically present to sign documents before AFZA executives.
• Registered Agent:
  • Official registered agent must be appointed; their office address serves as the Ajman Offshore Company’s address.
• Company Name:
  • Company’s name must conclude with “Limited.”
• Property Ownership:
  • Company can own a maximum of three properties.
• Business Scope:
  • Business activities confined to the Free Zone and cannot extend outside, including transactions within the UAE.
• Investment:
  • Shareholders allowed to invest in UAE companies.
• Residence Visas:
  • UAE residence visas cannot be obtained based on the Ajman offshore company.

Essential Documents for Ajman Offshore Company Formation:

• Passport copies of all company shareholders.
• Copies of valid UAE Visas or Entry Stamp pages.
• Original proof of residence for each shareholder.
• Personal profiles (CVs) of each shareholder.
• Original bank reference letters (Good Standing Letters) for each shareholder.

Types of Activities Allowed for Ajman Offshore Companies:

1. Holding Company: Ajman Offshore companies can function as holding entities for various investments and assets.

General Trading: They are permitted to engage in general trading activities, facilitating the buying and selling of goods.

2. Professional Services: Ajman Offshore companies can offer professional services across various industries, catering to specific client needs.

3. International Services: They can provide international services, facilitating transactions and operations across borders.

4. Investments and Joint Investments: Ajman Offshore companies can undertake investment activities independently or in collaboration with other entities.

5. Shipping and Ship Management: They are allowed to engage in shipping and ship management activities, including vessel ownership and operation.

Commission Agents (Intermediary Brokers – IBs): Ajman Offshore companies can act as commission agents or intermediary brokers, facilitating transactions between buyers and sellers.

6. Advisory and Consulting Services: They can offer advisory and consulting services across diverse fields, providing expertise and guidance to clients.

7. Property Owning: Subject to land department approval or freehold properties, Ajman Offshore companies can own properties, facilitating real estate investments and holdings.