Setup Your Business Branch Office In Dubai.

Why Set Up A Branch Office In Dubai?

Dubai could be considered as the most investor-friendly around the world presently.
Setting up a branch office in Dubai has several positive aspects. The branch office of your corporate entity will place you in the exuberant business platform of UAE. By owning a 100% share in the branch office, you can augment matchless profit, which can be utilized towards further investments and personal growth. You are allowed to obtain a trade license in Dubai to perform business operations in the country. The move will be the right option in the right direction. Being available for creation in free zones, the branch office is one of the most important structures which can be established by a foreign company interested in making investments in specific industries in Dubai. From a taxation point of view, the branch in Dubai offers the same advantages as local companies, including the repatriation of profits without additional surcharges when set up in Dubai free zones.

When you choose to open a branch in Dubai, UAE, you must consider:

• The branch office will be required to complete the same activities of the foreign company;
• For these activities, the parent company must apply for the necessary licenses with the Dubai authorities;
• The branch in Dubai is not considered a separate legal entity from the foreign company;
• The parent company will be liable for the obligations and debts of the Dubai branch office;
• From a taxation point of view, the branch office will be taxed on the income earned in the UAE.

 

How To Set up A Branch Office In Dubai?

For setting up a branch in Dubai, the following steps can be followed:

 

1. Appoint A Local Services Agent - Find and appoint a local service agent (LSA), who is required to be a UAE national or a company wholly owned by UAE citizens. The role of the LSA is to administer chores such as obtaining licenses, permits, visas, etc. for a fee. He/she does not take part in any operations, management or ownership of the office. The agreement with the LSA will specify his role in the initial processing, including initial approval from the Dubai Economic Department (DED) and the Ministry of Economy.

2. Application to DED for License – The next step involves approaching the DED for issuance of the license. An application has to be submitted to the DED for the same. The application must be accompanied with initial approval and copies of the documents submitted to the Ministry of Economy for the same, approval from FFCC and other relevant departments, a letter from the auditing agency or auditor regarding the correctness of the audit report for the previous two financial years, lease agreement for the premise and other documents sought by DED.

3. Submission of Application - Post obtaining initial approval, an application has to be submitted to the Ministry of Economy of UAE for final approval for commencing the branch office in Dubai. All the relevant documents and certificates indicating shareholders, company registration details, list of proposed business activities intended in UAE, details of director board, details concerning the general manager in Dubai, and other info sought by the authority.

The documents to be submitted along with the application will include the following-
- Initial approval from the authorities
- Certificate indicating registration of trade name
- Passport copy of the assigned general manager in Dubai
- Power of attorney on his/ her name
- Document indicating the parent company’s resolution regarding branch office
- A detailed statement from the main entity concerning the business activities they have been undertaking and the planned activities in Dubai/ UAE
- Audited documents concerning the company’s financial status for the two previous fiscal

4. Final Set Up - After receipt of the license, the branch office can start activities towards full-fledged operations according to the approval. This will include administrative arrangements, visas for employees, bank account opening, approaching labor cards for the men, and similar activities.

5. Register with Commercial Authorities - After the successful completion of documentation work and licensing so that you have everything at hand, the branch office can register itself with commercial authorities and it is entered in the register of the Ministry of Economy and Commerce. Lastly, the branch office is registered at the Dubai Chamber of Commerce and Industry.
 

Types of Branch Offices in Dubai.

• Branch Company Setup – A branch company setup follows the rules, regulations, and policies as with the sole ownership. The parent company or organization need not be in Dubai. The parent entity can be in Dubai, any other emirates in the UAE, or anywhere else. The branch setup is the most common type of branch office in Dubai.
• Subsidiary – Subsidiary acts as a sole entity even though it has a parent organization. The subsidiary branch office must be located in Dubai with all its management based in Dubai. It is liable for all the business activities and monitoring of regulations and rules of the land. However, the parent entity can be located in Dubai, UAE, or any other region.
• Representative Office – The firms, which want to gain a foothold in the Dubai business field, without actually setting up a business entity or any other type of branch office can consider establishing a Representative Office. It is the best option for those searching for a budget-friendly branch office setup. The representative office will act as the outlet of the parent company obtaining orders, enhancing publicity, and acting on behalf of the main organization. Nonetheless, the representative office is not authorized to manufacture or undertake production activities. They can only outsource all the orders, tasks, and assignments to the main entity.
• Corporate Shareholder – Individuals or corporate companies can have shares in this type. The parent entity may be located in Dubai or any other place. The shareholder will have shares, as well as, the license of the company.
  

Get The Professional Service To Setup Your Business Branch.

 TMS-CSP is a leading business set up a company in Dubai, Our company has 20+ years of working experience in a branch setup. We have large extensive contacts with UAE banks and government authorities.  By using our experience, skills, and contact we make the process easy and quick. We allow our clients to perform their business activity in a short period of time in comparison to others that keeps us one step ahead from our competitors. Contact Us to get a free consultation.