Establish a Branch Office in Dubai

Expanding your business into Dubai through a branch office offers a strategic advantage in one of the world's most dynamic markets. This guide provides a step-by-step overview of the process, requirements, and benefits of setting up a branch office in Dubai.

What Is a Branch Office?

A branch office in Dubai is an extension of your parent company, allowing you to conduct business activities similar to those of the parent company. It is not a separate legal entity and operates under the name of the parent company. Branch offices are ideal for foreign companies looking to establish a presence in Dubai without forming a new legal entity.

Benefits of Setting Up a Branch Office in Dubai

• 100% Foreign Ownership: Enjoy full control over your branch operations without the need for a local partner.
• Tax Advantages: Benefit from Dubai's favorable tax regime, including exemptions on corporate and personal income taxes.
• Strategic Location: Leverage Dubai's position as a global business hub connecting the East and West.
• Access to a Skilled Workforce: Tap into a diverse talent pool in one of the world's most cosmopolitan cities.
• Enhanced Brand Visibility: Establish your brand in a market known for its robust economy and international trade.

Requirements for Setting Up a Branch Office

• Parent Company Documents: Provide the Certificate of Incorporation, Memorandum of Association (MOA), and Articles of Association (AOA).
• Board Resolution: A resolution from the parent company's board authorizing the establishment of the branch office.
• General Manager Appointment: Appoint a General Manager for the branch office and provide their details.
• Lease Agreement: Secure a lease for office space in Dubai, as a physical presence is mandatory.
• Financial Statements: Submit audited financial statements of the parent company for the past two years.
• Power of Attorney: Grant a power of attorney to a local service agent or legal representative.

Steps to Establish a Branch Office in Dubai

1. Define Business Activities: Clearly outline the activities your branch will undertake, ensuring they align with the parent company's operations.
2. Choose a Jurisdiction: Decide between setting up in Dubai's mainland or a free zone, based on your business needs and preferences.
3. Obtain Initial Approval: Apply for initial approval from the relevant authority, such as the Dubai Development Authority (DDA) or Dubai Multi Commodities Centre (DMCC).
4. Appoint a Local Service Agent: Engage a UAE national to act as your Local Service Agent, a requirement for mainland setups.
5. Secure Office Space: Lease a physical office within the chosen jurisdiction, as a branch office must have a tangible presence.
6. Submit Documentation: Provide all necessary documents, including those of the parent company and the appointed General Manager.
7. Obtain Trade License: Apply for a trade license that reflects the branch's activities and jurisdiction.
8. Register for Visas: Apply for residency visas and work permits for the branch's employees.
9. Open a Corporate Bank Account: Set up a corporate bank account in Dubai to manage the branch's financial transactions.

Cost of Setting Up a Branch Office

The cost of establishing a branch office in Dubai varies based on factors such as jurisdiction, business activities, and office space requirements. On average, the setup cost ranges from AED 50,000 to AED 150,000. It's advisable to consult with a business setup consultant to obtain a tailored estimate based on your specific needs.

Why Choose Licence.ae?

At Licence.ae, we specialize in assisting foreign companies with the seamless establishment of branch offices in Dubai. Our services include:

• Guidance on choosing the appropriate jurisdiction and business activities.
• Assistance with documentation preparation and submission.
• Engagement with trusted Local Service Agents.
• Support in securing office space and obtaining trade licenses.
• Facilitation of visa applications and corporate bank account setups.

With our expertise and local knowledge, we ensure a smooth and efficient setup process, allowing you to focus on growing your business in Dubai.