How to Open a Branch Office in Dubai

by Zaara 06, Dec 2019

How to Open a Branch Office in Dubai

Developing business activities is what makes a company grow. At the point when a business enterprise performs very well in the home market, the next step is expansion by multiplying the offices. The procedure of expansion starts with establishing a sub-divisional organization in the desired area of growth. A branch office alludes to a subdivision of a parent organization that is situated abroad. The idea behind a branch office is to advance and market the items/administrations/services of the parent organization, get into transactions, conclude agreements for the parent organization, and offer services to its clients. It isn't permitted to do any activity which its parent organization isn't allowed to. A branch office in Dubai is perfect for firmly controlled enterprises like Banking, Financial Services and Insurance (BFSI). The idea of setting up a branch office in Dubai

The process of establishing a branch office in UAE involves a few steps:

1. Finding Local Agents

This is the initial errand that is required to be finished. Finding a local sponsor is one of the most common undertakings that a branch office must do. It is mandatory that the sponsor must be a UAE national or be an organisation wholly owned by UAE nationals. 

2. Save a Trade Name

An application should be submitted in the Dubai Department of Economic Development (DED) stating the reservation of the trade name as well as getting an office registration approval.

3. Apply to the Ministry of Economy

A full-fledged business plan of the organisation should be expressed in the application that incorporates the insights about share capital, nature of the business, address of head office the name of the general manager in UAE, and so on along with certain necessary documents that are required for approval.

4. Acquire a License from the Department of Economic Development

Once the important records are submitted and assessed, the Ministry of Economy (MOE) will issue the letter of approval to the Dubai Department of Economic Development. Presently, at this stage, the customer needs to present another set of records and documents that will go with the underlying application. These include:

  • MOE approval got alongside different approval appropriate to the industry
  • Copy of proposed rental or lease agreement in the UAE
  • Copies of records submitted to the organisation.
  • Undertaking from the outside parent company
  • A letter from any auditor of the UAE affirming its .existence, giving an outlook on two-year financial statements of the parent organisation

After all the verification has been completed for the said submitted documents and reports, a commercial license will be issued by the DED with one-year validity and is to be renewed every year.

5. Complete the Administrative Tasks

When the permit or license has been given, further errands of business incorporation can be looked into like interiors, modifications of the office space. Even the opening of bank accounts, visa securement, and obtaining labour cards happens at this stage.

6. Become a Member of the Chamber of Commerce and Industry

The last step is to turn into an individual from the Dubai Chamber of Commerce and Industry by submission of an application supplemented with copies of the lease agreement, and the newly obtained commercial license from DED. 

Documents to Set Up a Branch Office in UAE

As seen in every stage of the initial approvals, documentation is everything, and the setting up of the office depends on it. There are reasonable perspectives on the ordered reports required to set up a branch office in UAE, which include:

  • Reservation of Trade name and initial approval forms
  •  Certificate of Incorporation
  •  Memorandum of Association (MOA),
  •  Articles of Association (AOA)
  • A valid board resolution approving of the opening of the branch office
  •  Certificate of good standing
  •  Power of Attorney  for the intended general manager
  •  Copies of passports of all the directors
  •  Audited records of the parent organization for the last two years
  • An explanation that features the organization's nature, mission and vision.
  • A sponsorship agreement notarised in the court of law.
  • Approval from the Government

Cost of Establishing a Branch Office in Dubai



Cost is AED

Ministry of Economy Application ( Govt.)



Ministry of Economy Registration ( Govt.)



Ministry of Economy Security Deposit



Local Government fees for Licensing and Registration



Local Sponsor Fees




Are you looking to expand your company into the commercial hub of the Middle East? For people unfamiliar with the entire process, setting up a business might seem like an elephant task. Also, the room for errors and technical mistakes is enormous. However, our team of experts at Commitbiz have been incorporating companies for over a decade and are the masters of the art.  Feel free to contact us, and we'd be more than happy to help you set up your dream branch office in Dubai.

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