4 Reasons to Start a Branch Office in Dubai

by Zaara 20, Nov 2019

Business establishments have been growing at a rapid rate in the Emirates of Dubai. The ground has been serving as a home to the established as well as newbies business available in the market. When it comes to an established business, who are looking out for a platform to expand, then Dubai serves to be one of the most preferred locations. Now, when it comes to implementation, the easiest and suitable option turns out to be a branch office. This business entity stands as an extension of the parent company and doesn’t deal with the operational activities. Now, you must be wondering as to what would be the outcome if you end up doing so. Well, this guide presents four reasons as to why business owners go forward and start a branch office in Dubai.

1. You Get to Know About the Target Market

A branch office deals with the business transactional activities similar to that of the parent company. The events that fall under the list for a branch company contains Business Closures, Research and Development, Market Analysis, Promotion and Advertising etc. By carrying out these activities, the branch office gets to understand the target market and potential customers. Fetching out such details is a necessary process when it comes to the expansion process, and provides a better clarity as to whether one should target the stated market or not.

2. Various Location Options

The Government of UAE has leveraged the location flexibility for business owners to come forward and set up a branch office. A branch office can be established in the MainlandFree Zone or Offshore in Dubai. Before you go and opt for one, you need to have a complete idea regarding all the available options and choose the best according to your business needs. It is to be kept in mind that location matters a lot in contributing success to a company, as you should know, your target audience and their presence accordingly. When it comes to execution, you don’t have to be tensed. To start a branch office in Dubai, you can easily look out for the office space solutions in a commercial complex in the dedicated zone, and carry out your business operations.

3. Complete Ownership

Another reason why business owners opt to set up a branch company in Dubai is that you can hold full ownership. In simple terms, a branch company doesn’t get a separate identity from its owners but turns out to be an extension. The branch office formation doesn’t require a local sponsor, but does need a Local Service Agent to provide the business services related to the Government authorities, and doesn’t possess any ownership.

4. Build Relations with other Companies

Since the branch office stands as an expansion, it helps the parent company to build a corporate relationship with other related companies prevailing in the region. This helps the parent company to identify the relevant business stakeholders and partners accordingly without losing their focus on the core business tasks.

Thus, you can see that a branch company stands as a benefit for the parent company and helps to fetch in more revenue accordingly. By starting a branch company, you can target different locations and each of that will help you to focus a new set of customers, ultimately paving out more ways for growth opportunities. Now, the implementation process of incorporating a branch office might turn out to be complex if conducted without any guidance. One of the smart options that business investors proceed ahead with is the to approach and join hands with business clients who can guide them at every step. Are you wondering whom to contact? Well, don’t the worry-your solution is right below.

Commitbiz Consultants stands as one of the top business consultants who has been helping multiple clients to incorporate their business across the UAE, Oman, Qatar and Bahrain. Our business experts are well-versed with the incorporation proceedings and can guide you effectively. They take the utmost care in understanding your business and provide customized solutions accordingly. In case you hold doubt or query, contact us today-we’d be glad to assist.


Which is the best location for opening an office in Dubai (Branch Office)?

Dubai mainland is the best location for a Branch Office setup in Dubai.

What is the Corporate Tax for a Branch Office in Dubai?

The corporate tax is 0 to 55%.

Which Branch Office companies are entitled to the highest taxation?

Companies involved in Oil & Gas production or the extraction of other natural resources. Branch offices of such companies are under the highest taxation.

Which authority provides the license for setting up a branch office in Dubai?

Department of Economic Development Dubai will allot you the license for setting up your Branch Office.

What is the average cost of opening a Branch Office in Dubai?

The average cost for setting up a branch office in Dubai is AED 130211.39 (US$ 35450)