Setting up a Branch of a Foreign Company in Dubai

International Branch Office Setup in Dubai

One of the reasons why foreign business owners come to Dubai is because they plan to expand their business here. With that, there are a lot of international companies in Dubai that are branches of established organizations outside the United Arab Emirates (UAE), and their branches set up a representative office in Dubai as well. Since they think that they can cater to potential and existing clients more by having a presence here, they go forward with setting up a branch of a foreign company in Dubai. However, even though it’s a known activity that businessmen do, there is still a bit of confusion between a branch and representative office.

Difference between branch and representative office UAE

Another entity can be established by a parent company in another city, state, or country and still be part of that parent company. This is called “branch”. This new entity is still fully owned by the parent company and should operate under the same name and with the same business activity.

On the other hand, a branch can have an additional activity for the sole purpose of marketing the whole enterprise’s products and services. But in this case, it’s not allowed for that office to deliver or trade the said products and services. Representative office in Dubai is registered through the UAE Ministry of the Economy and Dubai Department of Economic Development.

Setting up a branch of a foreign company in Dubai is a known move by foreign businessmen. It simply means that they have a licensed organization in another country that is growing, reaching other nations’ attention. The procedures that are followed in setting up a branch of a foreign company in Dubai are almost the same as setting up a business.

Moreover, an applicant needs to have a national service agent. This agent can be an individual or a company. But it should be noted that the agent must be a UAE national or, in the case of a company, run by UAE nationals. However, the full rights of the branch shall remain with the owners themselves and none will be given to the agent. This requirement is mandated by the federal and local government.

There are systematic procedures that are followed for setting up a branch of foreign company in Dubai. This is why seeking the help of a consultant is advisable to guide you through. A consultant can provide you with the information you need and answer your question of how to open an international office and how to set up a representative office in UAE. They are the people who can explain to you in detail the things you need to know, such as UAE foreign investment law, and even other things that you are keen to find out.

Business setup in Dubai may not seem like an easy task, but with a business setup consultant helping you, you can ensure that you are doing things lawfully and cost-effectively.

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