Are you Planning to start a Branch Office in Dubai, UAE, here is what you need to do. With a branch office in Dubai UAE is easy when done with the help of the experts. It is also the easiest way a foreign company can enter the market in the UAE. If you already have a fully functional company in another country and you want to enter the Middle Eastern market, then a branch office in Dubai UAE is the way to go. Dubai is like the gateway to the Middle East. Its strategic geographic location allows foreign companies to connect itself to the whole region.

With a branch office in Dubai UAE, your company can perform business activities such as marketing products, selling goods and services, entering agreements, carrying out transactions, etc. However, if the parent company is not allowed to perform a certain business activity, then the branch office in Dubai UAE cannot perform that business activity as well.

What is a branch office in Dubai UAE?

There are certain characteristics that define a branch office in Dubai UAE. Foreign companies that want to establish their presence in the UAE can choose between branch office, subsidiary, and representative office. These are three different company structures with their own characteristics and benefits.

Here are the characteristics of a branch office in Dubai UAE:

• The branch office can perform the same activities as the parent company.
• The branch office must apply for the respective trade license that allows those business activities.
• The branch office is not considered a separate legal entity from the parent company.
• The parent company will be liable for the debts and obligations of the branch office.
• The branch office will be taxed based on their income in the UAE.
• The branch office will have the same name as the parent company.

Process of Setting Up a Branch Office in Dubai UAE

You can either set up your branch office by yourself or with the help of the experts. However, if it is your first time starting any kind of company in the UAE, it is highly suggested that you seek help from professionals. Any mistakes in the company formation process will cause some expensive backs that will cost you both time and money. As the result, the total cost will exceed the cost of hiring the professionals to start the company for you.

Here are the steps you need to follow in order to start your branch office in Dubai UAE:

1. Appoint an LSA (local service agent)

The local service agent needs to be a UAE national (Emirati), and they will act as the intermediary between the relevant governing authority and you. They will obtain licenses, visas, permits, approvals, etc. for you. Since a lot of the documents and official processes are conducted in the Arabic language, it is necessary for foreign companies to appoint a Local Service Agent. If required, the Local Service Agent will share ownership of the company but will not take part in any operational or management activities of the company. They will not take a portion of the profit and will only require a minimal yearly fee.

2. File your branch office formation application

To get started, you need to file an application to the Ministry of Economy in Dubai. You need to obtain the initial approval from them to move on to the next steps. That is why you need to fill the application form carefully with authentic information that is free from any error. Your local service agent will help you fill-up the application form to ensure that are no errors. A service agent agreement is also required to officially declare that the local service agent will be acting on your behalf to start the company.

3. Get required approvals from the Ministry of Economy and Federal Foreign Companies Committee

You will need to submit the required documents to the Ministry of Economy to get their approval. You will also need approval from the Federal Foreign Companies Committee to start performing your business activities in the UAE. The Ministry of Economy will forward the application to the Federal Foreign Companies Committee, so you do not need to worry about it. If everything turns out ok, then a permit letter will be sent, and you will get the approval for your branch office in Dubai UAE.

4. Obtain the Business Trade License from the DED

The Department of Economic Development in the UAE is responsible for providing business license to new businesses in Dubai. After you have received your approvals from the Ministry of Economy and Federal Foreign Companies Committee, you can apply for the business trade license from the DED. Remember that you can only perform the business activities that you registered for when applying for the business trade license. So, it is suggested to select all the relevant business activities carefully when applying for the trade license. The business trade license needs to be renewed annually.

5. Register with the Commercial Authorities

After you have successfully registered your branch office and obtained your business trade license, the last step is to register with the commercial authorities. For example, if your branch office is located in Dubai then you need to register with the Dubai Chamber of Commerce and Industry and the Ministry of Economic Companies Register.

Documents Required to Setting up a Branch Office in Dubai UAE

Here are the documents you need to procure to start your branch office in Dubai UAE:

• Filled up application forms for the registration of the branch office.
• The trade name reservation certificate.
• The Memorandum and Articles of Association (MAA) of the parent company.
• A copy of the Certificate of Incorporation of the parent company.
• The passport copies of the Company’s Director.
• A no-objection letter from the parent company.
• A power of attorney for the director of the Branch Office.
• The board resolution of the Parent Company for opening a Branch Office in Dubai UAE.

How can Company Setup Consultants help you?

Our experts have years of experience starting various businesses all over the UAE, including branch offices for foreign companies. We also provide some of the best office spaces in Dubai. If you are looking to start your branch office in Dubai UAE, then you are at the right place. We are located in the prestigious Conrad Hotel – Business Tower, Sheikh Zayed Road, Dubai.

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