A Guide to Setup a Branch Office In Dubai

1. A Guide to Setup a Branch Office In Dubai From startups to established businesses, a strong international presence is a must to have to establish a global reputation in their respective sector. With a stable economy, excellent growth opportunities, pro-business and tax policies, etc., UAE ranks among the top destinations globally for expanding business operations internationally. Presently, no other destination than Dubai can be better for a brand setup in UAE. From a favorable location to complete foreign ownership, a branch office setup in this glittering emirate is ideal for businesses looking

2. to expand their market reach and build a strong international presence. Continue reading this comprehensive guide for branch setup in Dubai that will feature types of branch offices that can be operated in the emirate, benefits of setting it up, and steps in the setup process. Branch Setup in UAE: 4 Types Business owners who wish to establish a branch setup in UAE are presented with 4 main options: Corporate Shareholder: This is a company that holds shares in different companies, which is allowed to be involved in ownership and other decision-making processes while maintaining its separate legal identity. A brand office of a corporate shareholder can be operated by individual or multiple shareholders with the license. Branch Company: This is the most common and popular option chosen by business owners who wish to establish a branch setup in UAE. The parent company and its branch can together operate within an emirate in the country; however, the branch must follow the operations and rules and must operate under the parent’s company name. Representative Office: The parent company and its representative office can operate together within or outside the UAE. However, the only limitation is that the representative office can conduct activities like market research and brand

3. awareness and cannot be involved in direct sales or any other independent income-generating activities. Subsidiary: Unlike a regular branch office, a subsidiary branch setup in UAE must have its own legal identity, allowing it to operate independently. Though the subsidiary will have its own management, legal status, and financial records, the majority of its ownership will still be controlled by the parent company. Branch Setup in Dubai: Key Benefits A branch setup in Dubai will not only assist businesses achieve stronger international presence, but many other lucrative benefits will be offered that are: 1. Low-Tax Regime: Tax incentives and policies will allow businesses to operate with the highest profitability while expanding operations in new markets. The company’s financial profit can significantly increase with Dubai’s low tax regime. 2. Reduced Administrative Load: The Emirates’ government actively promotes business development with streamlined setup processes, supporting regulations, and reduced paperwork requirements. Additionally, separate audited accounts do not need to be submitted while establishing a branch setup in Dubai. 3. Affordable Entry into Middle Eastern Markets: Establishing a branch setup in UAE will allow

4. business owners to achieve an affordable entry into the Middle Eastern markets, as there is no minimum capital share requirement. Mainland vs. Freezone: Branch Setup in UAE Two types of branch offices can be established in the Emirates: mainland or freezone. These two types feature the following key differences: Mainland branches can operate freely across the Emirates, while freezone branches can only operate within the free zone unless they get special permissions. Free zone branches are governed by the rules and regulations established by the free zone authorities. Mainland branch offices are not subjected to minimum share capital requirements, while free zone branches are subjected to specific share capital requirements. Business Setup in Dubai, UAE: 6 Steps 1. File an Application In the first step of business setup in Dubai, a foreign business owner must apply to the MoE. However, before application filing, appoint a UAE national to act as your local service agent, particularly for a mainland representative branch office setup.

5. During this process, the authority will provide a service agent agreement, which is a must to obtain for the next process. 2. Approval from the Dubai Economic Department Obtain initial approval from the DED, as the authority will further send an application to the relevant authorities for additional approvals. Additionally, the department will provide another agreement for the branch office setup. 3. Approval from UAE Federal Foreign Companies Committee After obtaining DED approval, you must obtain approval from the UAE Federal Foreign Companies Committee. After reviewing the application forwarded by the department to the committee, a permit letter to operate a specific business activity under the parent’s company name will be granted to you. 4. Get the Ministerial License After securing all the required authorizations, the next thing to do is to obtain a license for the branch setup in Dubai from the Ministry of Economic and Commerce. The license will approve operations of the specific activity by the branch within the emirate. 5. Company Registration & Business License

6. The next step is to register the company name under DED with the help of a local service agent. After company registration, submit the business license application form, requested documents, and required fees. 6. Get Registered with Commercial Authorities After obtaining the approvals and required licenses from the relevant authorities, you must register your branch office with the commercial authorities, which is mandatory to initiate operations within the emirate. Conclusion With stronger local brand recognition, businesses must focus on expanding their access to new markets to maintain long-term success. With the right professional assistance, a branch setup in UAE can become easier and hassle-free for you. Connect with Start Any Business UAE (India Branch), the business setup specialist, and get the right assistance for a branch office setup in the emirate. With over 10 years of expertise and a team of business setup experts, the company guarantees complete assistance to navigate the branch office setup process smoothly while ensuring regulation compliance. Source: A Guide to Setup a Branch Office In Dubai