Quick Look Branch Formation
Branch of Foreign Company
In some instances, such as specialised activities like Engineering Consultancy or Banking activities, the DED allows for the setup of a branch of a foreign company in Dubai or its representative office.
LICENSES: Services | Specialised Trading
FACILITIES: Executive desks | Offices
COSTS: Packages from US$ 8500
Advantages : Can trade/provide service anywhere in the UAE, more options for office spaces in Dubai Mainland, easy bank account opening
How can we help you?
- Recommend the best options as per your requirement
- Incorporate your company with ease
- Provide a holistic solution for all your business needs
Download our free guide on forming a Branch of a Foreign Company in Dubai!
BRANCH OF FOREIGN COMPANY IN DUBAI
For specialised activities like Engineering Consultancy or Banking activities, the DED allows for the setup of a branch of a foreign company in Dubai or its representative office.
The main difference between a branch and a representative office is that the representative office can only be used for market promotion activities, and hence cannot invoice customers.
A branch of a foreign company in Dubai can apply for specific professional activities, commercial and industrial activities.
An additional approval is required from the Ministry of Economy, which is a UAE Federal Ministry.
A branch of a foreign company in Dubai has no independent existence, and hence is 100% held by the parent company.
A UAE National will have to appointed as Service Agent. The Service Agent will have no shares in the License but will only act as a liaison between the entity and Government departments such as Ministry of Labour.
Advantages of setting up a Branch in Dubai
- Easy setup
- Flexibility of doing business
- Range of locations
- Options for multiple visas
- Sponsor of dependents
Dubai offers the additional benefits of a very high standard of living and a vibrant expatriate community with people from over 180 nations living and working in the region.
The Branch company is 100% owned by the parent company, and hence there is no share capital that is required.
Setting up a branch of a foreign company in Dubai requires a UAE National to act as the local service agent, who liaises with the Government authorities, including the Ministry of Labour.
We can help you structure your company through our company formation services. Contact us to discuss your requirements.
A specific range of activities can be chosen for the formation of the branch of a foreign company in Dubai. These usually include specialised engineering, banking and trading activities.
The DED will allow the Foreign Branch to engage in only the activities that the parent company is licensed for.
Please get in touch with us to check if the intended activity can be approved for a Branch of a Foreign Company.
Click here to download an updated list of business activities allowed by the Dubai Department of Economic Development.
The process of applying for a Branch Company in Dubai is as follows:
- Select business activity – this should be the same activity as the parent company.
- Find a UAE National to act as local service agent.
- Submit an application to the UAE Ministry of Economy
- Reserve of a new trade name. Click here to know more details on acceptable trade names.
- Sign the Local Service Agent Agreement in the Dubai Courts. Click here to access a draft Local Service Agent Agreement.
- Rent office space in Dubai. You can choose from business centre desk options as well.
- Pay the DED fees and obtain the trade license.
- Submit the license to the UAE Ministry of Economy and obtain the required permit.
Here are the documentation required for registration process:
Parent Company Documents*
- Certificate of Registration/Incorporation
- Memorandum & Articles of Association
- Board Resolution appointing the authorized signatory for all government and banking transactions and to represent the branch company in UAE
- Power Of Attorney for authorized signatory
*The above documents should be notarized and attested in UAE Embassy in the country of origin and in Ministry of Foreign Affairs in UAE in case the parent company is outside UAE. These documents will further have to be translated into Arabic, and attested from the Ministry of Justice.
*In case of the parent company registered in UAE, the board resolution will be attested by the relevant license issuing authority of the parent company.
The cost of a setting up a branch of a foreign company in Dubai starts from AED 25,000, and depends on the activity chosen, and office space that the company rents.
Investors now have the option of setting up a Branch Company with a desk space as well. Additional costs include the registration of the company with the Ministries of Immigration and Labour and visa costs.
How can 10 Zone help in the formation?
10 Zone has:
- Been setting up businesses in Dubai since 2004
- Experts in consultancy and company formation
- A team of highly qualified Lawyers, Chartered Accountants and Relationship Managers
- Capabilities to assist you in English, Arabic, French, German, Turkish, Hindi, Afrikaans & Tagalog.
- Assistance in company formation
- Assistance in bank account opening
- Visa processing
- VAT registration
- HR & Payroll
- Contracts and Agreements
- Secretarial and Annual Compliances
- Marketing and branding
- 100% foreign ownership
- 0% corporate tax for 50 years
- 0% personal income tax
- 100% repatriation of capital and profits
- 0% import or re-export duties
- No currency restrictions
- No restrictions on foreign talent or employees
All entities in DMCC can register a free zone establishment as one of the following –
I. Limited Liability Company
The liability of its shareholders is limited to the value of the share capital they hold in the company.
II. Branch Company
A branch is a representative office of a legal entity which already exists outside of the DMCC Free Zone (local or international). A branch company -
- derives its power and authority from the parent entity thus does not have separate legal personality.
- will not have a board of directors or company secretary
- must retain the same name as the parent entity and end with the designation (Branch).
DMCC offers a wide range of business activities which are categorized into the following licenses:
- Trading LicenSes – allows the holder to carry out trading activities specified in the Licence.
- Service Licenses – allows the holder to carry out services specified in the Licence.
- Industrial Licenses – allows the holder to carry out light manufacturing activities as specified in the License
To see the full list of business activities, download here
Source: Dubai Multi Commodities Centre Authority Free Zone Rules and Regulations
DMCC have the following lease or office types to offer:
- Flexi-desks / Business Centre
- Office Spaces and Solutions
- Commercial Freehold property
Here are the initial documentation required for incorporation process:
- Know Your Client (KYC) form
- Business Plan
- Passport Copy of shareholder, director, manager, company secretary, and/or legal representative.
- Proof of residential address (valid tenancy contract, utility bill (not older than 6 months), bank confirmation letter (not older than 6 months)..etc.)
Parent Company Documents (for BRANCH COMPANIES)
- Certificate of Registration
- Memorandum & Articles of Association
- Certificate of Incumbency
Additional requirements will be advised during the incorporation stage.
License fee starts at $5,530
Visas fee starts at $1,450
Flexi-desk space starts at $5,000 (with an option for three visas)
Office space - from $20 per sq.ft. per annum