Branch Office in Abu Dhabi

The United Arab Emirates (UAE) is one of the most sought-after destinations for starting a business. Being home to seven different Emirates, the country stands out as a top choice for entrepreneurs.  Each Emirate offers various incentives to boost business growth. If you are looking to expand your business, making it ideal for setting up a branch office in UAE can offer numerous opportunities and access to the global market..Among the UAE’s many business-friendly locations,  Abu Dhabi stands out. The capital city has grown immensely over the years.  Additionally, with Abu Dhabi Vision 2030 in place, the Emirate is destined for greater development in the near future.

Establishing a branch office in Abu Dhabi has become increasingly popular for several straightforward reasons. Its political stability and clear regulatory framework provide companies with a secure and predictable operating environment. Abu Dhabi's commitment to economic diversification has created a strong foundation for international businesses across various sectors. The government also actively encourages foreign investment through streamlined procedures and dedicated support services. Ready to begin your business journey by setting up a branch office in Abu Dhabi? Continue reading this article to understand the details of this business structure.

What is a Branch Office?

A branch office is an extension of a parent company that operates in a different location. This business structure operates under the same name and legal identity as the parent company. Companies often establish branch offices to expand into new markets, maintain a physical presence in strategic locations, or serve local customers more effectively. They can conduct the same business activities as the parent company, including sales, marketing, customer service, and more.

Benefits of Opening a Branch Office in Abu Dhabi

Understand the popular reasons why many companies choose to open a branch office in Abu Dhabi. Some of the key benefits include:

• Abu Dhabi's strategic location between East and West makes it an ideal hub for businesses looking to access markets across the Middle East, Africa, and Asia. This geographical advantage reduces travel times and shipping costs.
• The city offers modern infrastructure, including state-of-the-art office spaces, reliable utilities, advanced telecommunications networks, and efficient transportation systems that support day-to-day business operations.
• The presence of a skilled, multilingual workforce enables companies to recruit qualified professionals locally.
• Abu Dhabi's business-friendly regulatory environment ensures a streamlined process for company registration, licensing, and compliance procedures.
• Businesses can benefit from 100 percent ownership rights in most sectors when establishing a branch in Abu Dhabi's free zones.
• The emirate offers attractive tax incentives, including no personal income tax, a 9 percent corporate tax, no withholding tax, and numerous double taxation agreements with countries worldwide.
• Companies can access the city’s strong banking sector and financial services and utilise various funding options for business growth.
• Businesses can benefit from various government initiatives designed to support specific industries, including subsidies and grants, among others.

How to Set Up a Branch Office in Abu Dhabi?

Follow the steps mentioned below to streamline the process of establishing a branch office in Abu Dhabi:

Step 1 - Select a jurisdiction where you wish to establish your branch office. You can choose between the Abu Dhabi free zones and the mainland. Each jurisdiction offers unique benefits and has its own set of regulations. Understand your needs carefully before selecting the appropriate jurisdiction.

Step 2 - You must appoint a local service agent when setting up a branch office in Abu Dhabi. A local service agent is a UAE national or a company owned by UAE nationals. Their role includes assisting with paperwork, communicating with government authorities, and making sure your business complies with local laws.

Step 3 - You must apply for trade name reservation in Abu Dhabi with the relevant authorities. For this step, it is essential that you use the parent company’s name.

Step 4 - Gather the essential documents to apply for initial approval. To avail initial approval, it is essential that you mention the activities undertaken by the company in Abu Dhabi.

Step 5 - Apply for necessary approvals from the appropriate authorities. This is to ensure that your business complies with all relevant regulations and legal requirements. Securing these approvals will help avoid potential legal issues and ensure the smooth operation of your business in Abu Dhabi.

Step 6 - Lease or rent an office space in Abu Dhabi and avail the tenancy contract. Ensure that the chosen space meets your business requirements in terms of location, size, and facilities.

Step 7 - Apply for company registration in Abu Dhabi by submitting essential documents and a completed application. The relevant authorities will review your application and verify that all necessary documents are in order. Once approved, you will receive your official company registration certificate, which will allow you to operate your business legally in Abu Dhabi.

Step 8 - Pay the requisite fees.

Documents Required to Open an Abu Dhabi Branch Office

Documentation is an essential step for establishing a business setup in Abu Dhabi. Some of the documents required for opening a branch office in Abu Dhabi include a Memorandum of Association (MoA), copy of the board resolution, a copy of certificate of incorporation, Articles of Association (AoA), and more. For more information about the documentation process, reach out to Commitbiz. We can help you streamline the documentation process to ensure everything is in order.

What is the Cost of Starting a Branch Office in Abu Dhabi?

The cost of starting a branch office in Abu Dhabi depends on whether you choose to set up in the mainland or a free zone, each offering distinct benefits and cost structures.

Setting up a branch office in the Abu Dhabi starts from AED 12,345. The package includes a commercial license, Memorandum of Association (MoA), UBO registration, corporate digital bank account, P.O. box, company stamp, and a corporate tax consultation. This is ideal for businesses looking for a strong on-ground presence and access to government contracts.

Alternatively, the Abu Dhabi freezone option starts from AED 12,075, offering a more flexible setup that includes a virtual office, Incorporation Certificate, license, MoA & AoA, company stamp, bank introduction, lease agreement, and an initial financial/VAT consultation.

Choosing the right jurisdiction depends on your business activity, operational needs, and long-term goals.

How Can Commitbiz Help?

Commitbiz, a leading Corporate Service Provider (CSP) in the UAE and Middle East, simplifies the process of establishing a company in Abu Dhabi. Through expert guidance, local connections, and comprehensive support, we ensure a smooth business incorporation.

Our team navigates regulatory requirements, assists with documentation, and handles licensing procedures while providing ongoing compliance assistance. By leveraging our extensive knowledge of the city’s business landscape, companies can efficiently establish their branch office in Abu Dhabi while focusing on core business operations and growth opportunities. Contact us to get started today!