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.
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.
We covers all the following industries, even if your industry not in list you can consult with us we can help you setup.
Branch setup and company formation in Dubai have advantages that come with them. Business owners who come here in the UAE have their organizations formed in their countries of origin and would like to be within easy reach to their clients. It is an advantage in itself to not spend more money in delivery and trading when a branch is set up here that ensures more effective communication with the clients and cost-effective way of dealing with the business at hand.
This is why more and more international companies in Dubai are swarming the country. It’s because doing this venture brings advantages to their enterprise.
By choosing to set up another branch, it can increase your presence not just in your country but also globally. Your value as a company will be highly regarded even more as you build a better rapport with your clients and the new ones, who have a high potential of becoming one of your future consumers. The fact that the demand of your products and services is being met speaks volumes with regard to your company’s state in the industry ladder (how well known you are) and your company’s sensible move of ensuring that clients are contented. Meeting your clients halfway is always a good move.
In addition, the expansion of your business from one country to another adds to the endless opportunities of open doors with regard to being discovered by clients that you haven’t even dealt with before.
The country is known to be a business hub, trades happening here and there so the revenue of the whole enterprise also is also pulled up when a branch is set up in the UAE. The people will also see your credibility through how you treat your clients, e.g., setting up a branch near them to make things easier for them, and through how you execute your work.
Although it is a good move, it shouldn’t be done hastily. A study should be done to ensure that expanding will not hurt your business but will help it exceedingly. Setting up a branch should give positive effects not the opposite.
Requirements for Dubai Company Registration
FAR Consulting Middle East is one of the leading consulting companies in Dubai that deal with corporate business services Dubai. We assist people who have questions on how to open a business in Dubai.
We can provide the following services when you let us handle your affairs when it comes to company setup in Dubai:
Below is the estimated Dubai business setup cost with our own assessment of the fees. You can contact us for further information regarding this table of estimation.
| Fees/Cost/Receiver | Narration | Cycle | Cost (AED) | Payment | Comments |
| Trade Name Reservation | Govt. Agency | One Time | 610 | 100% Adv. | View |
| Initial Approval for Your Business | Govt. Agency | One Time | 110 | 100% Adv. | |
| Local Citizen – Sponsorship Fee | Your Business’ Local Sponsor | Yearly | 15,000 | 100% Later | View |
| MOA – Legal Translation Services | Translation Services | One Time | 1,280 | 100% Adv. | View |
| Notarization of MOA | Govt. Agency | One Time | 960 | 100% Adv. | View |
| Licensing & Certificate of Incorporation Fees (For Specific Business Activity) | Govt. Agency | Yearly | 7,000 | 100% Adv. | View |
| File Opening – Immigration (Establishment Card) | Govt. Agency | One Time | 860 | 100% Adv. | |
| File Opening – Ministry of Labour (Establishment Card) | Govt. Agency | One Time | 2,053 | 100% Adv. | |
| E-Signature Card – Ministry of Labour | Govt. Agency | One Time | 1,000 | 100% Adv. | |
| Farhat Office & Co.’s Fees – Your Business Registration Consultant’s Professional Fees All Following Services are Included: » MOA drafting – Arabic / English » Power of attorney Drafting – A/E » Side Agreement Drafting – A/E | Professional Fees/Farhat Office & Co. | One Time | 15,000 | 100% Adv. | |
| TOTAL | 43,873 | View |