Ajman Offshore Company Formation 

Ajman, one of the seven emirates of the UAE, offers a strategic location and favourable business environment for offshore company formation. With its investor-friendly policies, tax benefits, and straightforward setup process, Ajman has become an attractive destination for entrepreneurs and businesses looking to establish an offshore presence. This article provides a detailed guide on Ajman offshore company formation, including its benefits, requirements, and step-by-step process.

What is an Offshore Company?

An offshore company is a legal entity established outside the country of its primary operations or its owner's residence. These companies are typically formed in jurisdictions with favourable tax regulations, business laws, and privacy policies.  

Overview of Ajman Offshore Companies

The Ajman Free Zone Authority (AFZA) controls and regulates offshore company formation in Ajman. Established in 1988, AFZA began offering offshore company formation services in 2014. Located in Ajman, the free zone enjoys strategic connectivity via land, air, and sea. Its proximity to major investment hubs like Dubai and Abu Dhabi provides added advantages for investors. Additionally, Ajman is one of the most cost-effective emirates in the UAE, making it easier and more attractive for foreigners to conduct business.

Features of Ajman Offshore Company Formation

The following are the most prominent features associated with Ajman offshore company formation:

Number of Directors

• Investors must appoint at least one director, with a maximum of five directors allowed.

• Corporate entities cannot serve as directors.

• An individual can serve as both the shareholder and director.

Requirements for Shareholders

• Shareholders determine the authorised share capital.

• Shareholders are allowed to invest in other companies established in the UAE.

Appointment of Secretary

•  Offshore companies must appoint at least one secretary to oversee secretarial and administrative duties.

• A director can also assume the role of the secretary.

Appointment of Registered Agents

• Offshore companies in Ajman must be set up through registered agents.

• Registered agents assist with all steps of company incorporation and administrative requirements.

Registered Office Requirements

• A physical office address must be provided.

• The office address of UAE-registered agents can be used as the companyÃ???Ã??Ã?¢??s registered address.

Restrictions on Activities

• Offshore entities are not allowed to conduct business activities within the UAE.

No Trade License

• Unlike free zone or mainland companies, offshore companies are issued a certificate of incorporation instead of a trade license.

Ability to Open Bank Accounts

• Opening a corporate bank account in the UAE is relatively easy for Ajman offshore companies.

Benefits of Establishing an Ajman Offshore Company

 The benefits of establishing your company as an Ajman Offshore Company include:

• Cost-Effective Registration: Ajman offers one of the most budget-friendly free zone registration processes in the UAE, providing a swift and economical way to set up your business.

• Quick Setup: The registration process for an Ajman offshore company is efficient, typically taking only 2 to 3 working days.

• Global Banking Access: With an Ajman offshore company, you can operate bank accounts both within the UAE and internationally, providing flexibility and global reach.

• Confidentiality: The information of shareholders and directors remains private, ensuring confidentiality for all parties involved.

• Repatriation of Capital and Profits: Ajman offshore setups allow for 100% repatriation of capital and profits, providing full financial freedom.

• Full Foreign Ownership: Ajman company formation permits 100% foreign ownership, offering complete control to international investors.

• No Physical Office Requirement: There is no need for a physical office presence within the UAE for an Ajman Offshore Company, offering flexibility and reduced overhead costs.

• No Minimum Paid-Up Capital: Ajman offshore company formation does not require any paid-up share capital, easing the financial burden on business owners. 

 Ajman Offshore Company Requirements

 Documents Required for Ajman Offshore Company Formation

 To initiate the offshore incorporation process, the following documents are necessary:

• Passport copies of all company shareholders.

•  Copies of valid UAE visas or entry stamp pages for each shareholder.

•  Original proof of residence for each shareholder.

•  Personal profiles (CVs) of each shareholder.

• Original bank reference letters (Good Standing Letters) for each shareholder.

• Corporate Shareholder Criteria

 The criteria for corporate shareholders include the following:

•  Incorporation Certificate

•  The parent company's Incorporation Certificate.

• Memorandum and Articles of Association 

• The parent company's Memorandum and Articles of Association.

• Board Resolution

• A Board Resolution affirming the intent to form an Ajman Offshore company.

• Certificate of Good Standing

• A Certificate of Good Standing for the parent company.

• Director Passport Copies

• Passport copies of two (2) directors.

Permitted  Business Activities in Ajman Offshore Company

• International trade

• Brokerage activities

• Intellectual property rights holding

• Property holding in Ajman

• Online advertising activities

• Consultancy

• Registration of ships

• Trading in stock markets

Non-Permitted Activities in Ajman Offshore Company

• Financial

• Insurance and re-insurance

• Media

• Aviation

• Conduct business with onshore companies in the UAE

• Establishing a branch in the UAE

Step-by-Step Process for Ajman Offshore Company Formation

The Ajman Offshore Company Formation procedure  is explained in detail below:

Choose a Business Name

Select a business name that is unique and not already in use by another entity. Make sure the name complies with Ajman regulations, avoiding any restricted or sensitive terms. Reserve the chosen name to secure it for your company.

Prepare Documents

• Identification Documents: Gather passport copies and proof of address for all shareholders and directors.

• Company Details: Prepare details of the shareholders, directors, and the intended business activities.

• Memorandum and Articles of Association: Draft these documents outlining the companyÃ???Ã??Ã?¢??s structure, purpose, and governance.

Appoint a Registered Agent

• Select a Licensed Agent: Choose a registered agent licensed by Ajman who will facilitate the incorporation process.
• Agreement: Enter into an agreement with the registered agent to handle all required filings and correspondence.

Submit Application

Fill out the necessary application forms provided by Ajman authorities. The registered agent will submit all required documentation, including identification documents and the Memorandum and Articles of Association.

Receive Approval

• Review Process: Ajman authorities will review the submitted application and documents for compliance.

• Certificate of Incorporation: Upon approval, Ajman will issue the Certificate of Incorporation, formally establishing the company.

Open a Bank Account

• Choose a Bank: Select a bank in the UAE that offers corporate banking services suitable for your business needs.

• Submit Bank Forms: Complete and submit the necessary forms to open a corporate bank account.

• Provide Required Documents: Supply the bank with the Certificate of Incorporation, identification documents, and any other required information.

Commence Business Operations

• Compliance Check: Ensure all business activities comply with Ajman offshore regulations.
• Operational Setup: Set up the necessary infrastructure and processes to begin business operations.
• Ongoing Compliance: Maintain compliance with Ajman requirements, including any annual filings and renewals.

By following these detailed steps, you can successfully establish an offshore company in Ajman, leveraging its favorable business environment and regulatory framework.

Conclusion

In summary, forming an offshore company in Ajman, UAE, is an attractive option for businesses due to its cost-effectiveness, strategic location, and flexible regulations. Ajman allows complete foreign ownership, confidentiality, and easy capital repatriation, making it ideal for international operations. Setting up is straightforward, requiring minimal capital and allowing quick incorporation. By following the required steps and regulations, businesses can start and operate efficiently in Ajman, maximising their global reach.

Ready to establish your offshore company in Ajman? Visit filings.ae to get started with our expert assistance and streamline your business setup in one of the UAE's most strategic locations.