business setup in dubai

How to Register foreign branch in Dubai

Incorporating a branch of the company formation in Dubai or in UAE is a good option and a common way to get foreign ownership. This practice is considered better because it lets the companies get 100% ownership from their parent company. The forms are treated as a foreign company’s extension which is the reason why forms do not have their own legal entities.

Open a branch office in UAE

For the business set up in Dubai, the branch of the parent company formed in UAE will get the permission to carry out the commercial activities as per its wish. For setting up a branch of a foreign company in Dubai one of the most important things parent company has to keep in mind for the company formation in Dubai is that the services they provide in their branch company should be similar to the ones provided in their parent company.

Find more details: How to start a business in Dubai

Key steps for starting a business in Dubai, UAE

Contact Business setup Consultants

Having an idea regarding the legal structure of the company is required by the parent company. For this purpose, the company needs legal advice from legal consultants. The legal consultant will give a legal opinion and the company will be formed as per the choice of the client.

National service agent’s appointment

The national service agent appointed by the client should be a UAE national. If not, the company must be owned by the nationals in UAE. Legal agreements and power of attorneys have made it possible for the clients to create LLCs with 100% ownership.

Documents required for setting up a branch of a foreign company in Dubai

Here are the necessary documents required for branch formation. To note is that these are not the limited documents. There may be other documents required for different clients based on their company needs and they must carry them out according to the demands for proper company formation or setup company in Dubai.

  • Incorporation certificate.
  • Memorandum of Association (MOA).
  • The article of Association (AOA).
  • Good standing certificate.
  • Parent company’s audited accounts (past 2 years required).
  • Authorization for branch formation of the company.
  • Appointing general manager for the branch company.
  • The statement about the legal operations and activities of the company.
  • Passport copy of the General Manager (certified).
  • Certified proofs of General Manager’s address (2 required).
  • The CV of the General Manager (1 required).
  • General Manager’s Bank reference letter (1 required).

Notarization of documents

The documents submitted for the formation of the branch company must be notarized beforehand.  The documents should be attested and notarized at the home country of the applicant followed by the attestation by the relevant consulate of UAE. The process of notarization is time taking so it would be better if it gets carried out as early as possible.

Documents translation

The official translator must translate all the documents before presenting them in front of the authorities.

Application process management

After notarization and translation of the documents, they are to be presented to the sovereign for the management of the application process to be conducted properly. For the sake of licensing, Department of Economic Development is to be contacted.

Advantages of a Foreign Company formation in Dubai, UAE

100% ownership

A branch of any foreign company can get 100% ownership in UAE

No more than 2 years’ experience required

A company doesn’t need to show more than 2 years of experience since incorporated in its home country.

No restrictions on location

Any activity that is legally approved can be carried out anywhere in UAE including the free zones but the license is surely required for them.

No capital requirements

The capital requirements have been totally waived off by the government in UAE for the foreign business formation.

Disadvantages of a Branch or Representative Office in UAE:

With advantages, there are some limitations for the businesses as well;

  • The foreign company which gets established in UAE will be limited to carry out only the parent company’s business activities and nothing beyond that.
  • The companies may take more time to get established as compared to the free zones. It may take almost 8 to 10 weeks to establish a foreign company branch in UAE.

Why should you choose FAR Consulting Middle East?

FAR Consulting Middle East provides you with state of art services including business setup in UAE, accounting services, liquidation services, trademark registration, Pro services, HR services, dispute support services, payroll outsourcing and so much more. You name it and they have it. The services offered are a great quality which lets you resolve your problems as easier as ever.

The 30 years’ experience of business setup consultants in Dubai, UAE waives off all your inconveniences and lets you new business setup Dubai, Abu Dhabi, Sharjah, UAE, free zones, and GCC Countries/Arab Gulf Region. You will surely not regret taking the help of this legal / Law firms in Dubai, UAE  because it has all that you would need regarding your business and its services. Feel free to consult them for your swift business establishment and to be on the safer side with any risks or problems in the process. Your business functions matter and FAR Consulting Know how to make everything possible for your company even more.

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