Branch Office in Ajman

Ajman is one of the seven Emirates that constitute the UAE. It offers world-class infrastructure, excellent logistics facilities, flexible legal framework, pro-business initiatives, and various tax incentives to businesses.

Ajman’s proximity to Dubai and Sharjah and the easy access it offers to ports and international airports make it a highly lucrative investment hub for entrepreneurs, small and medium enterprises (SMEs), and conglomerates.

Setting up a new branch is a highly beneficial form of expansion for many businesses. More often than not, business owners form a company in Ajman and then expand into the free zones for business operations.

Types of Branch Offices in Ajman

A branch office in Ajman allows a parent company to establish an additional entity registered within a specific state or country and operating under its jurisdiction. Despite being registered locally, the branch remains an extension of the parent company.

The parent company retains complete ownership of the branch, and the branch must operate under the same name and business activity as the parent company.

There are two primary types of branch offices:

1. Branch of a Local Company
2. Branch of a Foreign Company

Branch of a Local Company

A branch of a local company is ideal for businesses established in one of the Emirates and wishing to expand by opening branches in other Emirates. These companies must comply with the relevant company laws during registration (applicable to Commercial and Industrial Companies).

Civil companies are also permitted to open branches. These entities must meet all licensing requirements set by the concerned Emirate, including obtaining external approvals for certain business activities when necessary.

Branch of a Foreign Company

Companies based in Arab or foreign countries (excluding GCC countries) can establish a branch in Ajman under the following conditions:

• Companies engaged in professional activities can register directly with the department without the need for registration at the Ministry of Economy, provided they appoint a local service agent.
• Companies intending to open a representation office must first register with the Ministry of Economy, then complete the remaining formalities at the relevant department in Ajman. Such companies must obtain a trade name reservation and initial approval before proceeding.
• Companies conducting commercial activities, such as contracting, must first secure initial approval and business name registration. Then, they must obtain permission from the technical committee at the municipality, and finally proceed to register with the Ministry of Economy.

Conditions to Open a Branch Office in Ajman

When establishing a business setup in Ajman, branch offices must meet certain local requirements, including:

• Except for foreign companies operating under special licenses within duty-free zones, no foreign business may conduct its primary activities or establish offices or branches in the UAE without first obtaining a license from the Ministry of Economy. This must be done after first receiving approval from the concerned authority.

  The issued license must clearly specify the activity the company is authorised to perform.

  To qualify for this license, the foreign company must appoint a local service agent, who can be either:

  1. A UAE national (natural person), or

  2. A company fully owned by UAE nationals.

• The local agent’s role is limited to facilitating essential services for the company. They do not bear any financial responsibilities or liabilities related to the company’s operations or its branches inside or outside the UAE.
• Additionally, the foreign company and its branches must register in the UAE Trade Register at the Ministry of Economy before commencing any business activity in the Emirate.
• All branches and offices of foreign companies must:

  1. Comply with UAE laws governing their business activities.

  2. Maintain a separate profit and loss account and independent balance sheet.

  3. Appoint an auditor to review financial records.

• If a foreign company or its branch begins operations before completing these legal formalities, the individuals involved in such activities will be held liable for any resulting obligations.

Documents Required for Branch Office Registration

To establish a branch office in Ajman, you must submit certain documents to the authorities. They include:

• Completed application form
• A detailed business plan
• Registration and legal documents of the parent company
• Memorandum & Articles of Association

You may also require sector-specific approvals from authorities in Ajman depending on the sector.

Procedure to Open a Branch Office in Ajman

Registering a branch office in Ajman is a simple procedure with the help of Commitbiz experts. The step-by-step process to open a branch office in the Emirate involves the following steps:

1. Step 1: Choose either mainland or Ajman Free Zone as the jurisdiction for your branch office.
2. Step 2: Appoint a UAE national or company as your local service agent.
3. Step 3:  Reserve a business name for the branch office with the Ajman Department of Economic Development (Ajman DED).
4. Step 4: Apply for an initial approval from the Ministry.
5. Step 5: Finalise an office space for the branch with the help of Commitbiz.
6. Step 6: Apply for a license and pay fees.

Once you have obtained your license, you can commerce operations in Ajman. You can also apply for an Establishment Card in the Emirate if you plan on hiring employees for your branch office in Ajman.

Why Commitbiz?

Establishing a branch office in Ajman provides foreign and local companies with a strategic opportunity to expand their business presence within the UAE. However, the process is governed by strict regulatory requirements to ensure transparency and compliance with local laws.

By securing the necessary approvals from the Ministry of Economy, appointing a qualified local service agent, and maintaining proper financial records, companies can operate smoothly and legally. Following these procedures not only ensures compliance but also enables businesses to benefit from Ajman’s growing economic environment and investor-friendly policies.

Commitbiz’s dedicated business setup experts can ensure a smooth company registration ensuring a hassle-free expansion. Whether you're looking for bank account or tax consulting services in the UAE, our experienced consultants help you navigate the local compliance requirements with ease. Contact us today to know more!