Branch Office in Abu Dhabi

Opening a representative or a branch office in one of the UAE's Emirates is one option for an investor or a businessperson to reach the UAE's markets.  Thet too, opening a branch office in Abu Dhabi, the nation's capital can be more rewarding. A branch office is preferable for a firm that wishes to expand its activities in different regions of the world.

But first, let us learn more about a foreign company's branch office.

A branch office of a foreign firm does not have a separate entity. It acts as a representative for the parent corporation and does business under its name.

The objective of creating a branch office is to promote and advertise the parent company's products and services, enter into transactions and settle agreements in the parent company's name, and provide services to its clients. 

It should be noted that a branch office is not permitted to do any activity that the parent firm does not perform.

Advantages of Opening a Branch Office in Abu Dhabi

Just like business set up in Abu Dhabi, a branch office in Abu Dhabi also has so many benefits

• The UAE has a 0% corporation tax on branch offices.

• Less administrative tasks

• Because a branch firm is simply a division of a parent company, business owners will have to make fewer financial decisions. As a result, creating a new branch office in the UAE is a cost-effective option that business owners should take advantage of whenever possible in order to expand their firm into new markets.

• There is no personal income or capital tax.

• 100% capital and profit repatriation

• There are no currency restrictions.

• Import tariffs that are competitive

• Freight rates that are competitive

• Also, the Commercial Companies Law governs foreign business branches in the UAE and states that they can be 100% foreign-owned as long as a local agent or sponsor is hired.

Documents required for Your Abu Dhabi Branch Office

To open an Abu Dhabi Branch office, you need certain documents. They are. 

• Company license copy

• Certificate of Incorporation

• Board Of Resolution

• Power Of Attorney for appointed Manager

• Passport copy of Manager

• Letter from local Auditor to undertake branch auditing

A branch office in Abu Dhabi may be established in a matter of days.

So, if you have a firm in the UAE or outside the UAE and wish to develop your business inside or beyond the UAE, Abu Dhabi is a perfect location to start.

Procedure for Abu Dhabi Branch office Opening

A foreign firm may create an Abu Dhabi branch office after being approved by the Executive Council and the Federal Ministry of Economy and Commerce, receiving a relevant license from the Abu Dhabi Municipality and becoming a member of the Abu Dhabi Chamber of Commerce.

Understanding the steps to set up a foreign branch office in Abu Dhabi is crucial. The steps are as follows

Submit Your Application

The parent firm must complete an application form with the Ministry of Economy and Commerce in order to register a branch office in Abu Dhabi. It is also critical that a service agent agreement be included with the submission. Having a UAE native as your service agent during the registration process is required.

Initial Approval

The UAE Ministry of Economy and Commerce will only offer an agreement if the local Economic Department accepts. As a result, the Ministry of Economic and Commerce will forward the application to the local government for approval.

Final Approval

The next stage in establishing a branch office in Abu Dhabi is to get approval from the Federal Foreign Companies Committee. The application is then sent to the committee by the economics department, along with a permit letter from the Ministry of Economic and Commerce authorizing the company's commercial activities.

Get your License 

The Federal Foreign Companies Committee must approve the establishment of a branch office in Abu Dhabi. The economics department then forwards the application to the committee, along with a permit letter from the Ministry of Economic and Commerce authorizing the company's commercial activity.

Register with Commercial Authorities

Once you have all of the necessary documentation and permits, the branch office can register with the regional commercial authorities and begin operations. The Abu Dhabi branch office must be registered with the Abu Dhabi Chamber of Commerce and Industry.

At Commitbiz, we can propose the finest solutions for establishing a branch office for your company and ensuring that your firm is up and running with the least amount of fuss and work. 

We handle the entire procedure on your behalf, allowing you to focus on the big picture - your business. For additional information, please contact us right away.