Branch Office Setup in Dubai
Setting Up a Branch Office in Dubai
Looking for a branch office setup in Dubai to expand your business? With excellent infrastructure, a lifestyle that’s highly desirable, and an entrepreneurial environment that attracts millions of investors each year – Dubai has quickly reached the top of everyone’s list regardless of what their needs may be.
A branch office setup in Dubai is simply an extension of an existing company in a different location from its parent or holding company. While it’s in a separate physical location from the main company, the business name and activities performed must remain the same as that of the parent company.
Under the branch office structure, you are permitted to carry out industrial, commercial, and professional business activities, provided your parent company is permitted to carry out the same. However, in some cases, commercial and industrial companies may require additional approvals depending on the nature of the business being carried out. These approvals are required to be obtained prior to the issuance of your license.
Our business consultants offer top-notch services for those interested in opening a branch for a local company in the UAE. From completing paperwork to approaching government entities, seeking approvals, and helping you launch – our experts stay by your side till the end. Get in touch and experience what it’s like working with the best!
Benefits of opening a branch in Dubai
100% foreign ownership
A branch office is considered to be an extension of an existing company and therefore, 100% foreign ownership is permitted by law. Though you don’t require a local sponsor to set up this company type, you do, however, need to hire a local service agent to assist with your setup process. The LSA does not hold any rights or power over your company or the decision-making process – they are simply legal representatives who present your case in front of government entities.
Tax incentives
Dubai offers various tax-based incentives for businesses interested in opening a branch office. Branches in Dubai are completely exempt from paying any sort of corporate tax, capital gains tax, personal income tax, or withholding tax – truly is a luxury to not miss.
Cost-effective
Starting a company in Dubai can be a costly affair but luckily with branches, there is no requirement to deposit share capital; making this quite the affordable route to take. Browse our astonishing business setup packages.
Exempt from audits
The UAE Government has provided parent companies and branches with the advantage of going forward without having to carry out an internal financial audit. This brings down the total processing time massively and allows branches to be set up quicker and with less stress.
Documents required
A crucial step when registering for a new company is ensuring that your documents are in place. While this is quite an easy step to take care of, it’s as simple to mix up as well. Here are the documents you need to submit in order to obtain a successful approval;
- Application form
- Trade name and business activities reservation and approval forms.
- Passport copies of director(s) and GM
- Copies of the trade license supporting the parent company
- Memorandum of Association and Articles of Association
- A resolution by the board that confirms the decision of a branch office setup.
- Power of Attorney for the legal representative (if any).
- Board Resolution – A copy of the parent company’s board resolution for opening up an office in Dubai.
- Parent Company’s Business Details – Memorandum of Articles and Certificate of Incorporation.
- Ministry of Economic and Commerce.
- Company Registrar
- Chamber of Commerce.
What is the process of the branch office setup in Dubai?
Due to some key differences between opening a branch compared to opening other company types, this may seem like a tough process to decipher. However, Business Link specializes in complete company formation services, meaning we can help your launch your branch entirely. The process for the same is;
- Your first step is to file an application which must be submitted to the Ministry of Economy. For this, it’s also required of you to have a local service agent signed – confirming the partnership between you and the LSA. Your application must be supported by all required documents.
- Once this is sorted, based on your branch office license request, the MoE will provide their approval and clearance of your case.
- Upon the approval by the MoE, you will be granted a license by the Department of Economic Development in the Emirate you registered to set up your branch.
- After this, among the last steps is registering with other entities prior to starting your business. These are the Ministry of Economic Companies Register and the Dubai Chamber of Commerce.
Things to keep in mind
It’s important to be aware that while DED may be the main authorizing party for main companies when a branch office setup in Dubai comes into question – the Ministry of Economy is your primary governing body, and the DED simply issues your licenses upon approval by the MoE.
Business Link strives to deliver the best each time we onboard a new client and this is exactly why we’re people’s leading choice when it comes to branch office formation. Book a free consultation with one of our experienced business formation consultants today!
