Branch of Foreign Company in Dubai
How to Open Branch of Foreign Company in Dubai?
The UAE has become a hub for foreign investment, be it in the form of a new business or a branch foreign company in Dubai. UAE’s uber flexible laws and regulations have contributed massively to the development of the business environment and has made it a popular option among those in the east and the west. Surely, with the increase in foreign investment, the business atmosphere in the country is only looking upward.
To promote and market products of a parent/holding company internationally, the branch of a foreign company in Dubai concept came into being. Under this structure, the branch of the foreign company has an additional presence that is not just physically separate in terms of area; but is in another country altogether. In UAE, a branch of a foreign company can be set up within two jurisdictions, Mainland or the Free Zones.
As an entrepreneur with existing businesses, setting up a new one may seem tempting. But in terms of cost-effectiveness and processing time – expanding your horizons and setting up a branch of your foreign company is a feasible option that many have benefited from. This company structure allows the foreign investor to retain complete ownership over their new branch office and can conduct the same activities as that of its parent company.
Having dealt with and handled an abundance of business formation queries from clients across the globe, looking to set up in the UAE, Business Link is more than qualified to guide you in this regard. With a powerful team and a go-getter attitude, our team can assist you with all your needs.
Benefits of opening a branch of a foreign company in Dubai
UAE’s favorable tax system
The UAE doesn’t charge any corporate tax on money earned by branches of foreign companies. This means that the parent company retains all revenue that’s made.
MENA region
The UAE offers the perfect base to enter the MENA region, which with its demographics, is expected to grow rapidly in the coming decades. The UAE is strategically positioned with various powerful countries close by to carry out trading by air, as well as a strong sea route to facilitate trading by the sea – all in all, proving to be a great benefit to those investing in the country.
Easy auditing and administrative processes
You can expect to open the branch office in Dubai within days as there is no need to set up a separate finance function. The transactions between parent and branch companies are legally followed offering you a watertight audit trail.
Cost-effective
Entering a new market in a new region can definitely feel daunting. However, unlike other business structures, the branch of a foreign company can easily be incorporated into new markets. This is credited to the UAE government having removed the requirement of a minimum capital permanently – making the entire process much more affordable.
100% ownership
Among many other incentives offered by the UAE Government, the aspect of being able to own your business completely is by far one of the most beneficial incentives. A foreign branch can be set up without having to find a local sponsor, all that’s required is a legal representative, in the form of a local service agent. The need for a LSA further depends on your business activities.
Documents Required
- Passport copies of the appointed General Manager.
- Certificate of incorporation (attested from the UAE Embassy and MoFA).
- Memorandum of Association (attested from the UAE Embassy and MoFA).
- Articles of Association (attested from the UAE Embassy and MoFA).
- A resolution by the board that confirms the decision of opening a branch of foreign company in Dubai.
- Audit reports providing insight into the parent company’s financial records for the past two years.
- A document stating the company’s main operation and activities.
- A certificate confirming the parent company’s good legal standing
- Chamber of Commerce.
What is the process of opening a branch of a foreign company?
- Much like a few other licenses and company types, the branch of a foreign company in Dubai also requires you to hire a local service agent to assist you with all government procedures. The LSA must either be a UAE national or a company that’s wholly owned by UAE nationals. This LSA will then act as a legal representative who will help in your business setup process in exchange for an annual fee.
- Next, you’re required to secure approval from the MoE upon submitting all relevant documents regarding the nature of the business and identification documents of the parties involved.
- The MoE will issue an initial approval once you submit the following documents, among others.
- Initial approval issued by the MoE.
- Copies of all documents submitted initially to the MoE.
- Copy of the lease contract (a proposed lease may be considered as well).
- Once you have submitted these as well, the DED will issue your business license and your foreign company’s branch office can begin with its procedures.
We pride ourselves on being one of the best in the business for business setup solutions and our clientele is a testament to this. We aim to help each one of our clients to the best of our capabilities, to ensure your foreign branch is set up in the most seamless way possible! Get in touch and let us do the rest.
