Foreign Company Branch In UAE

The United Arab Emirates is one of the few countries where forming a business is an easy and straightforward process. It is becoming faster and more comfortable than ever before, in keeping with the UAE’s Department of Economic Development’s (DED) objective of assisting company owners in launching and expanding operations without the need for long processes and administration to set up foreign company branch in UAE.

The Mainland and the Free Zone are the two primary jurisdictions in the Emirates for conducting business. Depending on your business kind and operations, the mainland and free zone provide distinct benefits.

Registration of a branch office or representative office, which allows 100 percent foreign ownership by the parent company, is a frequent approach for international enterprises to preserve foreign ownership under the UAE’s Commercial Company Law. These legal entities do not have their own legal personality and are thus viewed as an extension of the multinational corporation, which is nevertheless responsible for their actions.

A foreign company branch in the United Arab Emirates is an extension of the overseas parent company’s operations in the UAE. In addition, the branch office must get a trade license for the same activities as its parent firm. A branch office, as well as a free zone, can be established on the mainland. There is no requirement for capital to open a branch office.

Steps For Starting A Foreign Company Branch In UAE

  • Submit an application.
    To set up a foreign company branch in the UAE, the foreign investor must submit an application to the Ministry of Economy. A service agent agreement must also be given during the application process. Having a UAE national as your service agent for the establishment of a representative office is a must.
  • Obtain Ministry of Economy approval
    Only after the Economic Department of Dubai or the emirate in which you desire to open your branch has been approved, will the UAE Ministry of Economy present you with an agreement. As a result, the Ministry of Economy will submit the application for approval to the local government body.
  • Obtain UAE Federal Foreign Companies Committee approval.
    The Federal Foreign Companies Committee permission is the next step in the process of opening a foreign company branch in the UAE. The application is then forwarded to the committee by the economics department, along with a permit letter from the Ministry of Economic and Commerce for the company’s business activities.
  • Obtain a license from the Economic Development Ministry.
    The company will receive a ministerial license after the above-mentioned authorities authorize the branch office. The Ministry of Economy will issue a license that will include information about the company’s commercial activities.
  • Apply for a business license.
    When a foreign firm opens a branch in Dubai, the registration process begins at this point. The local Economic Department will register the foreign company branch in Dubai, following which the Business License will be provided.
  • Register with the Commercial Authorities.
    Once you have all of the necessary documents and permissions, you can register the branch office in Dubai with the relevant authorities and begin doing business. The foreign branch office in Dubai must be registered with the Dubai Chamber and the Ministry of Economic Companies Register.