The United Arab Emirates (UAE) is a leading global business hub that connects Asia, Europe, and Africa. International companies that want to expand into the UAE can choose to set up a Branch Office as part of Mainland Company Formation. A branch office allows a foreign company to extend its activities into the UAE while retaining full ownership and operational control.
Unlike subsidiaries, branch offices are not separate legal entities. They are legally tied to the parent company and can only conduct activities identical to the parent business. For example, if your parent company is in IT services, the UAE branch can offer the same services across Dubai, Abu Dhabi, Sharjah, Ajman, Ras Al Khaimah, Fujairah, and Umm Al Quwain.
This structure is highly attractive for global firms seeking to build a direct presence in the UAE without forming a new company.

A Branch Office in UAE is a foreign company extension that operates under the same name, brand, and business scope as the parent company. It requires approval from both the Department of Economic Development (DED) of the chosen emirate and the Ministry of Economy.
Key points about branch offices in the UAE:

• It carries out activities identical to the parent company.
• The parent company is 100% liable for the branch’s operations.
• It allows the company to maintain foreign ownership with no need for a local shareholder.
• A Local Service Agent (LSA) is required, but they hold no ownership rights.
• Profits can be repatriated without restrictions to the parent company’s country.

This option is ideal for foreign businesses wanting full control and to strengthen their brand identity across UAE markets.

Establishing a branch office in the UAE provides more than just physical presence, it offers credibility, operational flexibility, and access to lucrative opportunities.

• Direct Market Entry: A branch allows companies to operate directly in the UAE mainland, which provides access to millions of customers and thousands of government and private sector contracts.
• Government Projects: Many UAE government tenders and contracts require a company to have a registered presence in the country. A branch office meets this requirement.
• Global Brand Continuity: Businesses can operate under the same trade name, creating trust among UAE clients who value established global brands.
• Strategic Location: From Dubai International Airport to Abu Dhabi’s Khalifa Port and Sharjah’s industrial zones, UAE provides unmatched connectivity.
• Investor-Friendly Laws: The UAE’s business environment includes 0% corporate tax (except certain regulated industries like oil and banking), making it cost-effective for expansion.

In short, setting up a branch office strengthens your global footprint while giving you a competitive edge in the UAE and the wider GCC region.

Here are the main benefits international businesses enjoy when setting up a branch office in the UAE mainland:

• 100% Foreign Ownership: Full control of business operations under the parent company.
• Access Across All Emirates: Operate in Dubai, Abu Dhabi, Sharjah, Ajman, Ras Al Khaimah, Fujairah, and Umm Al Quwain without restrictions.
• No Corporate Tax: Except for specific industries, there is no corporate or income tax.
• Unrestricted Profit Repatriation: Send profits and capital back to the parent company easily.
• Brand Recognition: Operate under the same international trade name for consistency.
• Government Tender Eligibility: Ability to bid on lucrative UAE government contracts.
• Streamlined Hiring: Recruit skilled employees locally and internationally.
• Strategic Business Environment: UAE provides world-class infrastructure, banking, and logistics.

Setting up a branch office in the UAE involves multiple approvals. Here’s the detailed step-by-step process:

• Initial Approval: Submit an application to the Department of Economic Development (DED) of the chosen emirate (e.g., Dubai DED, Abu Dhabi DED).
• Trade Name Registration: Reserve the trade name, usually identical to the parent company.
• Ministry of Economy Approval: Secure approval to operate as a foreign branch in the UAE.
• Local Service Agent Appointment: Appoint a UAE national or local company as the LSA to liaise with authorities.
• Commercial License Issuance: Obtain a commercial license from the DED for branch operations.
• Office Space Lease: Sign a tenancy contract (Ejari in Dubai) for your physical office.
• Chamber of Commerce Registration: Register with the Chamber of Commerce in the emirate.
• Visa & Labor File Opening: Register with the Ministry of Human Resources & Emiratisation (MOHRE) for staff hiring.
• Corporate Bank Account Opening: Set up a UAE-based corporate account for financial transactions.

This process varies slightly depending on the emirate, but with expert guidance, approvals are obtained faster and more smoothly.

The following documents are typically required to establish a branch office:

• Certificate of Incorporation of the parent company.
• Memorandum & Articles of Association (notarized).
• Board Resolution approving UAE branch formation.
• Power of Attorney for the appointed branch manager.
• Passport copies of shareholders and branch manager.
• Parent company’s audited financial statements for the last 2 years.
• Local Service Agent (LSA) agreement.
• Tenancy contract and Ejari (for Dubai) or equivalent in other emirates.
• Ministry of Economy application form and approvals.

All documents must be notarized, attested, and in some cases translated into Arabic before submission.

A Branch Office in UAE offers foreign companies a powerful way to establish presence in the Middle East while maintaining 100% ownership and brand identity. With the right setup partner, the process becomes efficient, cost effective, and fully compliant with UAE laws.
Nines Consultancy simplifies the journey by handling all requirements, from approvals and licenses to visas and banking, so you can focus on business growth.

Get in touch today for a free consultation and take the first step toward expanding your global business into the UAE.