Foreign Company Branch Office Setup in Dubai

Companies all over the world are expanding trying to find a niche in the global trade market. Moreover, those companies who are keen on exploring the possibility of expanding activities abroad can always rely on setting up branch offices outside. In the Middle East, the companies find Dubai as the most suitable option for setting up branch offices. Besides the ever expanding business market has encouraged many companies to invest and trade. Let us see some points on How to Setup Foreign Company Branch Office in Dubai.

Branch Office and its features

A branch office is an outlet of the main company that does not have a separate legal entity but is physically separated form the main office. The objective of a Branch office is advertise as sale the products and service of the main organization. However a branch office cannot perform the activities which is not authorized to the parent organization. There are two types of branch offices in Dubai

  • Branch Offices Setup in Dubai Mainland : The offices which are setup in mainland area has to follow registration and licensing processes in the area it will operate. However, these offices does not need to fulfill the minimum share capital requirement in Mainland.
  • Branch Offices Setup in Dubai Free zone : The Branch Offices in free zone areas various facilities like tax exemptions, 100% repatriation of capitals and profits etc. Nevertheless, the companies can only perform their activities with their reserved free zone area.

How to Setup Foreign company Branch Office in Dubai

  • An entrepreneur need to take the help of a local service agent who will look after the processes for obtaining license, permits visas. They will charge a fee for the same but will not have any say in the operations and management of the office.
  • The next step is to reserve a trade name for the branch at the Department of Economic Development.
  • You need to get the initial approval from Ministry of Economy (MOE).
  • After we get the approval from MOE, one needs to apply for commercial license ae DED.
  • Furthermore, we should procure the license form DED which is valid for one year. Indeed, the license can renewed annually.
  • Do the necessary arrangements for opening a branch office like an office space, visas and labor cards for employees, opening a corporate bank A?C etc.
  • Finally register under the Dubai Chamber of Commerce and Industry.

Documents Required

  • The proof of trade name reservation
  • Application forms for registration.
  • Copies of Certificate if Incorporation of the parent company, director’s passport.
  • Furthermore you required to submit Memorandum Of Association (MOA) of the parent company.
  • Copies of the passport and naturalization book of the local service agent.
  • The parent Company’s management board resolution for opening a branch in Dubai.
  • The documents like AOA and Certificate of Incorporation must be attested from home country UAE consulate, Ministry of Foreign Affairs in UAE and then it should be translated into Arabic.

Therefore, those companies who are willing to make a footnote in the abroad market should always start with Branch Offices. Besides Dubai is a great place to setup a Branch Office as it has a wide scope for development.