Branch Office in Dubai

A branch office refers to an offshoot of a parent company located abroad. The purpose of a branch office is to promote and market the products/services of the parent company, enter into transactions, finalise agreements in the parent company's name, and offer services to its customers. It is not allowed to carry out any activities its parent company is not permitted to. A branch office in Dubai is ideal for tightly regulated industries like Banking, Financial Services and Insurance (BFSI).

Why Open a Branch Office in Dubai?

Opening a branch of foreign company in Dubai ensures legal presence in the United Arab Emirates. 

Read the below points to learn about the benefits of opening a branch office in Dubai

  • 100% Ownership.
  • Branch offices are also fully functioning enterprises.
  • It can do business under the name of its parent company.
  • A branch company can operate with the same legal status as its parent company.
  • Branch offices are allowed to operate any activity listed in the license under its parent company.
  • Branches of foreign companies in Dubai are allowed to operate fully in UAE, but under one condition: they should hire a local service agent and should be an Emirati national. 

How do you open a Branch Office in Dubai?

There are several ways to open a branch office in Dubai; you can open by yourself or with the help of an expert. If it is your first time, it's always better to hire an expert business consultant for any type of business. That will help you save both your money and time. 

For setting up a branch office in Dubai, the following steps can be followed:

The importance of LSA Dubai comes especially when it comes to documentation because most of the official documents and processes are conducted in Arabic, so it is necessary to hire a local service agent who is an Emirati national. 

He will play the role of mediator between the company and the government authorities.

Before doing a branch office setup in Dubai, file an application with the Ministry of Economy in Dubai for initial approval. This is important to move your application to the next step.

Look for suitable office space according to your activity; it could be a physical or virtual office. Now, get a lease agreement.

Before opening a branch office in Dubai and starting the business activity, it is mandatory to get approval from the Ministry of Economy and then from the Federal Foreign Companies Committee.

Once the Department of Economic Development (DED) approves the application, apply for a commercial license. The DED shall issue the license, valid for 1 year and renewable annually.

After the successful completion of documentation and licensing, the branch office can register itself with commercial authorities, and it is entered into the register of the Ministry of Economy and Commerce. 

Lastly, the branch office is registered at the Dubai Chamber of Commerce and Industry.

Documents Required for Your Office Setup in Dubai

Your office setup in Dubai requires initial approval from the Ministry of Economy (MOE). The following documents would be required:

  • The director’s passport copy.
  • Proof of trade name reservation.
  • Application forms for registration.
  • A power of attorney for the local director.
  • A no-objection letter was issued by the parent company.
  • A copy of the Certificate of Incorporation of the parent company.
  • Memorandum and Articles of Association of the parent company.
  • Copies of the passport and naturalisation book of the local service agent.
  • Parent company’s management board resolution for opening a branch in Dubai.

[Memorandum of Association and Articles of Association, the Certificate of Incorporation must be translated into Arabic and duly notarised by a public notary]

Opening an office in Dubai needs a license, whether it is a new branch or representative office

To obtain a commercial license from the DED, the following documents are required:

  • A copy of the property lease agreement of the branch office in Dubai, stating the plot number.
  • A statement listing the business activities to be carried out issued by the parent company.
  • Copies of all the documents submitted earlier to get the initial approval.
  • Audited financial statements of the parent company for the last 2 years.
  • The initial approval from the MOE.

The Cost of Setting up a Branch Office in Dubai

The cost of setting up a branch office in Dubai depends on the different jurisdictions you choose and the activity you choose to be involved in.

What services do you look for from Commitbiz to open a branch office in Dubai?

To set up a branch Office in Dubai, Commitbiz can offer you the service that will make you take a back seat and relax. Read a few services listed below:

  • Preparing the application documents.
  • Identifying a reliable local service agent.
  • Obtaining approvals and permissions from government departments.
  • Helping with opening a corporate bank account for the branch office.
  • Assisting with finding a suitable location for the branch office setup in Dubai.

You can contact our experts anytime for any queries regarding opening a branch office in Dubai.

Frequently Asked Questions (FAQs)

Is a physical office required to set up a branch of a foreign company in Dubai?

No, you can even have a virtual office.

To whom did the Dubai branch office need to be registered?

The Dubai branch office must be registered with the Dubai Department of Economic Development.

Do I get 100% foreign ownership of the parent company?

Yes, you will.

Which is the best location for opening a branch office in Dubai?

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

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

The average cost for setting up a branch office in Dubai is around 30500 AED.