How to Start your Branch Office in Dubai, UAE?

Branch Office in Dubai

Establishing a branch office in Dubai enables your company to engage in various business activities such as marketing products, selling goods and services, entering agreements, and conducting transactions. However, it’s essential to note that if the parent company is restricted from certain business activities, those restrictions extend to the branch office in Dubai as well.

A Branch Office in Dubai, UAE serves as a secondary establishment created by a main company in another location, such as a Freezone or Dubai Mainland. This setup aims to reduce costs, gain tax advantages, or explore new markets. When considering setting up a branch in Dubai, you typically have two options: establishing a business in Dubai Mainland or a Freezone. The regulations can vary depending on the chosen location.

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

  1. It conducts the same activities as the parent company.
  2. The branch office must apply for the respective trade license that permits those business activities.
  3. It is not considered a separate legal entity from the parent company.
  4. The parent company bears liability for the debts and obligations of the branch office.
  5. The branch office is taxed based on its income in the UAE.
  6. The branch office bears the same name as the parent company.

To initiate the establishment of a branch office in Dubai, UAE, you have the option to undertake the process independently or enlist the assistance of professionals. However, especially if this is your first venture into setting up a company in the UAE, it’s highly recommended to seek professional guidance.

Here’s a step-by-step guide to setting up a branch office in Dubai, UAE

  1. Appoint a Local Service Agent (LSA): This individual must be a UAE national (Emirati) and will serve as the intermediary between you and the relevant authorities. They will assist in obtaining licenses, visas, permits, and approvals. As many official processes are conducted in Arabic, having a Local Service Agent is essential.
  2. File your branch office formation application: Submit an application to the Ministry of Economy in Dubai. Ensure that the application is accurately filled with authentic information. Your local service agent can assist in completing the form to avoid errors. Additionally, a service agent agreement is required to formalize the LSA’s role.
  3. Obtain approvals: Once the initial approval is received from the Ministry of Economy, proceed to obtain necessary approvals from the Federal Foreign Companies Committee. The Ministry of Economy will forward the application to this committee. Upon approval, a permit letter will be issued, granting authorization for your branch setup in Dubai, UAE.
  4. Obtain the Business Trade License: Apply for the business trade license from the Department of Economic Development (DED) in Dubai. This license permits you to engage in the registered business activities. Ensure that all relevant activities are carefully selected during the application process. The business trade license requires annual renewal.
  5. Register with the Commercial Authorities: After obtaining the business license, complete the registration with the commercial authorities to finalize the setup of your branch office.

Required Documents

  • Filled application forms for branch office registration.
  • Trade name reservation certificate.
  • Memorandum and Articles of Association (MAA) of the parent company.
  • Copy of the Certificate of Incorporation of the parent company.
  • Passport copies of the Company’s Director.
  • No-objection letter from the parent company.
  • Power of attorney for the director of the Branch Office.
  • Board resolution of the Parent Company for opening a Branch Office in Dubai, UAE.

Why with Firmz Business Setup:

Firmz Business Setup provides a distinct advantage in obtaining branch office in dubai, UAE. With expertise in UAE business regulations, personalized solutions, and a comprehensive service range, Firmz Business Setup ensures a smoother and cost-effective license acquisition process. The team’s commitment to ongoing assistance contributes to the success of your business setup journey in Dubai.

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