Mainland Branch Office Setup - UAE
Establishing a branch office in Dubai offers foreign investors a pathway to expand their business presence in the UAE. While the country offers numerous advantages for setting up a company, there are also several benefits associated with operating a branch of a foreign company in Dubai.
Through the establishment of a branch office in Dubai, foreign businesses can create a legitimate presence in the United Arab Emirates. Unlike a local limited liability company, a branch office can be formed with 100% ownership from a foreign country and maintains the same legal status as its parent company. Additionally, it operates under the name of the parent company.
Our team of expert can help you to achieve your goals for branch office setup in mainland area of UAE.
Process for Establishing a Branch Office in Dubai, UAE
Here are the steps you need to follow in order to branch setup in Dubai, UAE:
Engage a Local Service Agent (LSA)
The Local Service Agent must be a UAE national (Emirati) and serves as the liaison between your company and the relevant government authorities. They are responsible for obtaining licenses, visas, permits, approvals, and other necessary documentation on your behalf.
Given that many official processes and documents are in Arabic, it’s imperative for foreign companies to appoint a Local Service Agent.
If necessary, the Local Service Agent may hold partial ownership of the company but will not be involved in its day-to-day operations or management. They do not claim any share of profits and typically require only a nominal annual fee.
Obtain Approvals from the Ministry of Economy and Federal Foreign Companies Committee
You must submit the necessary documents to the Ministry of Economy for their approval. Additionally, approval from the Federal Foreign Companies Committee is required to commence your business activities in the UAE.
The Ministry of Economy will handle the application process and forward it to the Federal Foreign Companies Committee on your behalf, relieving you of this responsibility. Upon successful processing, you will receive a permit letter granting approval for establishing your branch in Dubai, UAE.
Submit Your Branch Office Formation Application
To initiate the process, you are required to submit an application to the Ministry of Economy in Dubai. Obtaining initial approval from them is crucial before proceeding to the subsequent steps. Hence, it is essential to meticulously fill out the application form with accurate and authentic information, ensuring it is free from any errors.
Your local service agent will assist you in completing the application form to guarantee its accuracy. Additionally, a service agent agreement is necessary to formally establish that the local service agent will act on your behalf to commence the company setup process.
Acquire the Business Trade License from the DED
The Department of Economic Development (DED) in the UAE is responsible for issuing business licenses to new ventures in Dubai. Once you have obtained approvals from the Ministry of Economy and the Federal Foreign Companies Committee, you may proceed to apply for the business trade license from the DED.
It’s important to note that you can only engage in the business activities that you registered for when applying for the business trade license. Therefore, it is advisable to carefully select all relevant business activities during the license application process. The business trade license must be renewed annually.
Register with the Commercial Authorities
Following the successful registration of your branch office and the acquisition of your business license, the final step is to register with the commercial authorities.
For instance, if your foreign branch company is established in Dubai, you will need to register with entities such as the Dubai Chamber of Commerce and Industry and the Ministry of Economic Companies Register.