Foreign investors can grow their company in the United Arab Emirates by establishing a branch office in Dubai. Although the nation offers many advantages for establishing a business, there are also several advantages for a foreign corporation establishing a branch in Dubai.
Investors are heavily influencing due diligence to ensure the business structure they choose best meets their financial goals. If you want to register a Foreign Company Branch in Dubai, you can make use of Dubai’s strategic position to grow your business.
Entrepreneurs who own strong brands or well-established businesses in other nations are looking for opportunities to open branch offices in Dubai. Considering this, the authorities have made it simple and quick to set up a representative office in Dubai or any other Emirates. By handling all your company needs for operating a branch office in Dubai, the business specialists at Shuraa will assist you in establishing a branch office.
What Is a Dubai Branch Office of a Foreign Company?
A registered firm that is a branch or franchise of a foreign parent company is referred to as a foreign corporation branch office in Dubai. The foreign branch’s business operations must remain identical to the parent companies. A business or trade license must be obtained by the branch firm using the same name and for the same operations as the parent company.
How is a branch office different from a representative office?
You must know the distinctions between representative and branch offices if you intend to open one in Dubai.
A branch office is a division of the main office where business is performed; it operates independently in a different nation. Although the laws of the new country now govern the branch office, it is still regarded as part of the parent corporation. The designated manager of the planned branch firm oversees and runs the business.
On the other hand, a representative office is essentially a branch’s endeavour to advertise and market the parent company’s goods and services. The representative office cannot enter a direct sales arrangement for any kind of good or service.
Documents required to register a branch of a Foreign Company in Dubai
The following paperwork is needed to register a foreign company’s branch in Dubai:
- Your company’s business plan
- The owner’s or shareholder’s passport copy.
- • A copy of the shareholder or owner’s visa
- Limited options for the business reservation.
- Lease Agreement: Physical or Virtual Space
Be aware that all foreign company documentation must be certified in the home country and attested by the UAE embassy in the nation where the company is operated. This is something to remember when applying for the branch office in Dubai.
Types of foreign branch offices in Dubai
There are two sorts of branch offices in Dubai: those situated in free zones and those located on the mainland of the city. The main distinctions among the many types of businesses are:
- Free zone branch offices need to apply for and receive a license from the appropriate authority to function.
- Free zone branches must complete their work in the free zone in which they were first registered.
A foreign company may open a branch or representative office in the United Arab Emirates to carry out its principal activity by Article (313) of the Companies Law.
A foreign company can carry out the licensed activities at its new branch in the United Arab Emirates. On the other hand, a representative office can only advertise the products and services of the parent company.
An organization needs clearance from the Ministry of Economy before receiving a license from the DED. As a result, one hires a foreign branch to conduct business in Dubai.
Process of Setting up a Foreign Branch Office in Dubai:
If you wish to open a branch of a foreign company in Dubai, the following is the process:
1. Submit an application
The foreign investor must apply to the Ministry of Economy to open an office in Dubai. A service agreement must also be included at the time of submission. When setting up a representative office, it is essential that you have a UAE national serving as your service agent.
2. Get approval from the Ministry of Economic Affairs
Only if the DED gives its approval will the UAE Ministry of Economy provide an agreement. Therefore, the application will be forwarded to the local government authority for approval by the Ministry of Economy.
3. Obtain the UAE Federal Foreign Companies Committee’s approval:
Acquiring permission from the Federal Foreign Companies Committee is the next stage in opening a branch office in the United Arab Emirates. The application is sent to the committee by the Department of Economic in Dubai along with a letter of authorization for the company’s business activity from the Ministry of Economic and Commerce.
4. Obtain the Ministry of Economy’s License
The ministerial license will be given to the business once the branch office has received approval from the above-mentioned authorities.
5. Get a Business License
When a foreign firm opens a branch in Dubai, this is when the registration process happens. Once the branch office is registered by the local economic department, the business license will be issued.
6. Register with the Commercial Authorities
The UAE branch office can register with local authorities and begin operations as soon as the necessary paperwork and permissions are in place. The branch office in the UAE must be registered with the Dubai Chamber and the Ministry of Economic and Commerce.
Cost of Setting Up Branch Office in Dubai
The location of the branch, the jurisdiction (free zone or mainland), the operations you intend to do, and the kind and scale of the business are all important considerations when determining the cost of operating a foreign branch in Dubai. The starting price of opening a branch office in Dubai is AED 42,000* (USD 11,434*). In addition, an obligatory AED 50,000*(USD 13,612*) security deposit must be paid.
Please be aware that these are estimates and could change depending on your needs. Contact our professionals at Shuraa Business Setup for a detailed price estimate.
Elevate your enterprise with Shuraa Business Setup!
Dubai’s economy is growing at an unprecedented rate. It unquestionably offers the perfect environment for new businesses to succeed. Thus, without a doubt, this is the ideal moment to launch a branch office in Dubai!
However, setting up an office in Dubai involves a lot of paperwork, legalities, and procedures that must be followed in order to launch your company there. Foreign nationals are more likely to experience procedural challenges. But fear not—Shuraa Business Setup is here to assist you with its knowledge of the Dubai office setup procedure. With the help of our experts, the entire procedure will become quite straightforward.
We ensure that our clients receive professional and useful guidance on how to register a branch of a foreign company in Dubai, as well as assistance with the submission of necessary papers. As a comprehensive consulting service, we provide end-to-end support for all things connected, such as documentation, licensing, registration, PRO services, and more.