Local Company Branch Office Setup

Branch vs Representative Office for Local Companies

A branch and a representative office serve different purposes, even when opened by an already UAE-registered company:

• A branch can carry out the same commercial activities as the parent company, including trading and delivering services, and can generate revenue directly.
• A representative office is limited to marketing and promotional activities for the parent company’s products and services, and cannot trade or deliver goods and services locally.

Most companies looking to grow an existing UAE business in a new location choose a branch rather than a representative office, since it allows full commercial activity rather than promotion alone.

Requirements for Local Company Branch Office Setup

Setting up a local branch requires documentation confirming both the parent company’s UAE registration and the new branch’s details. Commonly required items include:

• Proof of trade name reservation for the branch
• Proof of initial approval for the business activity
• Copy of the parent company’s UAE trade licence
• Passport copies of shareholders
• Passport copy and CV of the branch manager
• A lease agreement, since a physical address is mandatory for the branch
• Notarized Power of Attorney appointing your consultant as legal representative
• Parent company’s Memorandum of Association and any relevant board resolution

Certain activities may require additional third-party or authority pre-approval, which we confirm during consultation.

Process of Local Company Branch Formation

1. Confirm your business activity. This must match the activity already licensed under your parent company.
2. Reserve your branch’s trade name. This typically mirrors the parent company’s name.
3. Apply for initial approval. Secure confirmation from the relevant local authority before proceeding.
4. Prepare your documents. This includes the Power of Attorney and parent company registration documents.
5. Secure your branch’s business address. Sign a lease agreement for your new location.
6. Submit your application and obtain your licence. Apply through the relevant local authority for the emirate or free zone where the branch will operate.
7. Complete visa and banking formalities, if needed. Arrange any required visas and set up branch-specific banking, where applicable.

The overall process typically takes a few weeks, depending on the jurisdiction and how quickly documents are prepared and approved.

Support Services for Local Branch Setup

We manage the practical steps involved in opening your branch, so you can stay focused on running your business. Our support includes:

• Applying for and following up on your branch’s trade licence
• Representing you in front of government authorities
• Assisting with banking arrangements for your branch
• Assisting with visa and Emirates ID processes, where needed
• Assisting with leasing a premise as your branch’s registered address
• Coordinating approvals across emirates or free zones, where your expansion spans more than one jurisdiction

We also stay involved after your branch licence is issued, including ongoing compliance and renewal support.

Cost of Local Company Branch Office Setup

The cost of opening a local branch depends on several factors, including the emirate or free zone you’re expanding into, your business activity, office or facility requirements, and whether any additional approvals apply to your activity. Costs are generally more predictable than for a foreign company branch, since there’s no National Service Agent fee involved.

Because these factors vary from one business to the next, we review your specific requirements first and then provide a clear, itemized cost estimate, with no hidden fees.

Why Choose FAR Consulting Middle East?

FAR Consulting Middle East supports UAE companies expanding through local branch formation, with advisory experience in the UAE since 1985. We manage documentation, approvals, and licensing for your new branch, while keeping the process aligned with your parent company’s existing registration.

Beyond licensing, we support banking arrangements, visa processing where needed, and ongoing compliance, so your new branch operates smoothly from day one.

Related UAE Business Setup Services

• UAE Mainland Business Setup – for companies considering a new mainland entity instead of a branch
• Branch of Foreign Company – setup guidance for companies whose parent is incorporated outside the UAE
• UAE Business Sponsor – local sponsor and service agent guidance where still required
• PRO Services – government liaison and document clearing support
• Corporate Bank Account Opening – banking support for your newly registered branch