branch office setup in uae

How to Establish a Branch or a Representative Office in UAE

There may be so many ways for a person to expand his business. one of the best ways of expanding the business is growing the business activities of the company. when any of the company starts providing hits services to the people I state of the art fashion, it starts appealing people towards it. this makes the company famous which attracts more and more people towards it.

 

Expansion

The expansion is the key to success in the business. when the business gets expanded, more sales are experienced. After fully established in the home market, the firms start to expand their businesses in other places. in this way, more and more people get to know about them which gives them a chance of expanding different parts of the country or the world.

There are a lot of ways of expanding the business and you must be aware of them too. here is a brief intro about how you can expand your business by establishing a Branch or a Representative Office in UAE.

 

  1. Representative Office

When they aren’t a company is providing its services in a foreign country, this particular type of company is established which is referred to as the representative office. All the marketing, as well as the non-transactional operations, are carried out in this company. people can establish such type of companies very easily. The reason behind it is that they perform the core activities of the business that is why they are easier to establish than the rest.

If we compare the representative office with the branch office, we will come to know that we can establish the representative offices comparatively in an easier way than the branch offices. The is all because of the core activities conduction in the representative office.

 

  1. Branch Office

The branch office is also an office that is present at a different location tat that of the patent office. It is located at a different location and has different departments for different operations as well. the different departments in branch offices may include; HR, Marketing, Accounting and, other departments as well. note that the ownership will only belong to the parent company and not the branch office.

 

Benefits of a Branch Office

  1. Tax Benefit

It is considered to be a very fascinating feature of the branch office. There is a complete exemption of tax in UAE in case of the branch office.

  1. Audit Streaming

Dealing with the audit on the international levels is quite complicated. When the company gets segmented, the operations become quite easy. In this way, all the funds get tracked in an easier way from the branch office to the parent company. in this way, the audit process becomes easier as well.

  1. Low Burden

There won’t be any need of the speared finance functions if you set up a branch office. The need for submission of audit accounts will also get disappeared because of the branch office.

  1. Cost-Effectiveness

You will not have to share your capital if you have a representative office of your company. you will only have to pay the normal standard fees and all other related applications are to be cleared out by you.all of it is really cost effective for sure.

 

Benefits of Establishing a Representative Office

 

  1. Pricing

The setup cost of the representative office appears to be only AED 100,000.

  1. Many Shareholders 

There can be many shareholders of a representative office. This is quite a good flexibility provided to the people. note that the maximum number of shareholders can be equal to 50

  1. No Share Capital

You will not need any share capital in order to establish a representative office of your company.

How to Establish a Branch Office in UAE?

Here are the steps that you need to follow for the establishment of a branch office;

 

  1. Local agent’s identification

First of all, identify the local agents of your company. this is quite important for the local agent to have the nationality of UAE or the company should be owned by the UAE nationals is mandatory as well.

 

  1. Trade name

Reserve a trade name for your business.

 

  1. Applying to the ministries

Give the basic details of the company and submit them to the ministry of economy to get the approval

 

  1. License

Get your business a license to provide the services you want.

 

  1. Administrative Tasks

Carry out all the administrative tasks properly after receiving the license like the office space, bank accounts, visa and more

 

  1. Member of Chamber of Commerce and Industry

This would be your final step after you are with your administrative tasks. Become a member of the Chamber of Commerce and Industry. You can do this easily by submitting the application with the lease agreement copies.

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