Hi Michael,

I'm Shilpa, and the first thing to understand is that a Dubai offshore company is different from a mainland or free zone company. It is generally designed for international business, holding and asset-structuring purposes, rather than operating a local UAE business.

The main requirements usually include the following:

1. Choose an Approved Offshore Jurisdiction

You need to select a recognised offshore registry, such as JAFZA Offshore or RAK ICC, depending on your intended structure and requirements.

You'll also generally need to appoint an authorised registered agent to handle incorporation filings and communication with the relevant registry.

2. Appoint the Company Structure

The company needs its required corporate officers. Depending on the jurisdiction and structure, this generally includes:

• At least one shareholder
• At least one director
• A company secretary where required
• A registered agent

The exact requirements can vary between JAFZA and RAK ICC, so they should be confirmed with the relevant registry or registered agent before incorporation.

3. Prepare the Required Documents

Commonly requested documents include:

• Passport copies of shareholders and directors
• Recent proof of residential address
• Bank reference letter for the principal shareholder, where required
• Memorandum and Articles of Association (MOA/AOA)
• A brief description or business plan explaining the intended international activities

Additional KYC or source-of-funds documents may be requested depending on the ownership structure and compliance review.

4. Understand the Operating Restrictions

This is particularly important for Michael's decision.

An offshore company generally cannot conduct ordinary local trading activities in the UAE market. It also does not function like a UAE operating company that can simply rent a local office and employ staff under its offshore licence.

An offshore company generally:

• Does not require a conventional physical UAE office for incorporation
• Does not provide UAE residence or employment visas
• Is intended primarily for activities outside the UAE domestic market

So, if Michael wants to run a business physically from Dubai, hire employees and trade directly in the UAE, a mainland or suitable free zone structure may be more appropriate.

I'd recommend deciding the purpose of the company first, holding assets, international trading, investment or operating locally, before choosing the jurisdiction. The wrong structure can create unnecessary banking, tax and compliance complications later.