Steps to Setup a Foreign Branch Office in the UAE
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Steps to Setup a Foreign Branch Office in the UAE

A branch of an overseas company in the United Arab Emirates is a certified company that may be 100% overseas owned, given a local services agent has been hired. The branch office is an expansion of the overseas company and should get a business license for the similar activities that are parent company conducts. So, if you are interested to know the steps to set up a foreign branch office in the UAE. Then, here we mentioned all the necessary steps that will help you to understand the entire process for setting up a branch office of an overseas company in the UAE.

A branch office is allowed to join in commercial activity and make a profit in the Emirates. This is licensed for the objectives fixed in its commercial license. This can engage only in activities that are carried out by the overseas company in its home range. Establishing an overseas branch office in the UAE will enhance the opportunities of business by incorporating its operations in other markets, among other diversified benefits.

The Process to Setup a Foreign Branch Offices in the UAE

  • The foreign branch office will have to hire a nation service agent to manage the process. This is mandatory that the local service agent in the emirate by a company 100% owned by the citizens of the UAE. Then you can fulfill the process of trade name reservation through the DED (Department of Economic Development).
  • Next, you need to get consent from the Ministry of Economy, and the application contains the information of the company about the nature of the business, share capital, head office, UAE general manager name, and more. Along with some mandatory documents.
  • The next phase is to get a business license from the Department of Economic Development. The Ministry of Economy would issue a preliminary sanction letter to either the Abu Dhabi Department of Economic Development or the DED of Dubai.
  • After the issuance of a business license, the company can check office space, obtain visas, open bank accounts, and labor cards for staff. Remember that the banks would be required to view complete UBO detail on the parent company and stakeholder framework and additional corporate within the parent company – all the overseas documents would require to be certified, validated, and translated for the utilize in the United Arab Emirates.

Types of Foreign Branch Office in the UAE

The businessmen can select from the four different types and consider the one that will be the most suitable for your business.

1. Corporate Stakeholder

Under this kind, the parent company can conduct in the emirates or any other geopolitics. The branch offices below corporate stakeholder permit a single stakeholder to hold a share with a license. This is also like have many corporate owners.

2. Branch Company

The most basic setups, a branch company, can further operate a parent company within or outside Dubai. Although, not like a corporate stakeholder, a branch company comply with the rule of a single owner.

3. Representative Office

The very cost-effective of all representative offices, even the types of branches, have parent company conducting within Dubai or outside. The key differences between the representative branch offices form others is that their activities of the business are limited to supporting and sourcing products for the parent company. They are not allowed to earn profit in the emirate and have to outsource all the work backward to the parent company.

4. Subsidiary

The companies operating below the subsidiaries branch operate in a freakish manner. They are treated as a separate sound status to the parent company and should be organized within Dubai. As the parent of the subsidiaries may be inside or outside the United Arab Emirates, but the supervision should be located in Dubai, the subsidiary takes overall liability for its operations and activities of the business.

A branch office in Dubai is entirely controlled by the parent company, operates under a similar name, and is sanctioned to carry out the similar activity of the business as its parent company. A branch office can rent office bases, issues sales receipts to the United Arab Emirates, and international customers, and sign local agent agreements.

To set up a foreign branch office in the UAE, it is important to register with the Ministry of Economy. A process should be followed with the respective registration charges to makes capable it to build a branch company. If you looking to establish a branch office in the UAE then you can consult with the Start Any Business consultants who will suggest you the right path throughout the procedure.

Also read, Best Strategy for Developing a Business Venture in Dubai

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