Officials said the new rules for offshore companies will certainly encourage more and more companies to set up offices in Jafz. The new Jafza Offshore Companies Regulations are in line with the latest international practices and are aimed to further the free zone’s credentials as a center for offshore firm, along the lines of British Virgin Islands and Jersey.

Parag P. Parekh, partner with N.R. Doshi and Co., which has recently carried out some studies on offshore and free zones, said, ‘The fee structure has been set at a reasonable level with Dhs. 2,000 for registration and Dhs. 1,500 for renewal. Every year, the global offshore facilities earn millions of dollars in fee annually from thousands of companies globally. The lower fee, will encourage many operators to shift their bases here. ‘Now, Jebel Ali will benefit by attracting some of them. Besides, one good thing in the regulation is the annual audit report to be submitted by the offshore companies. This will eliminate fraudulent players as many foul offshore companies are known to operate in the international market.’

According to the new regulations, to qualify as an offshore company registered with Jafz each firm must have a minimum of two directors and should issue a single class of shares.

The new regulation says, an offshore company must hold at least one meeting every year and produce financial statements to be audited by an approved auditor and deposited with the Companies’ registrar.

Also, the offshore firm must maintain a registered office in Jafz or through a registered agent who will be approved by the authority. According to M. Lahori, chairman of Palmon Group, which has extensive industrial interests in the free zone, It is a very good concept, but a lot more needs to be explained on the details. And having to operate through a registered agency is a big drawback.

‘I believe those companies which are in the free zone should be allowed to register their own addresses rather than go through agents.