Branch Office in Sharjah

Setting up a branch or representative office is an effective way for companies to expand and operate within the United Arab Emirates. Entrepreneurs with established companies or strong brand recognition outside the UAE often find it beneficial to open a branch office in Sharjah.

Keeping up with the demand, the authorities have introduced a simplified and efficient process for setting up branch offices in Sharjah. They also offer full foreign ownership (for most sectors), modern infrastructure, and tax incentives that make the Emirate an ideal destination for business expansion. 

Requirements to Establish a Branch Office in Sharjah

The branch office is not a separate legal entity. It operates as an extension of the parent company. The business activities must also align with that of the parent company as it remains liable.

For business setup in Sharjah while opting for branch office business structure branch, companies must meet the following requirements:

• Parent Company Resolution: The parent company’s board of directors must issue a formal resolution approving the establishment of the branch office in Sharjah.
• Local Service Agent (LSA): Foreign companies are required to appoint a Local Service Agent who is either a UAE national or a company wholly owned by UAE nationals.
• Office Space: Must submit the proof of having a physical office in Sharjah. It is mandatory to proceed with the licensing process.
• Trade License: Must possess a trade license issued by the Sharjah Economic Development Department (SEDD) or relevant free zone authority to conduct legal business operations in the Emirate.

Types of Branch Offices in Sharjah

There are three primary types of branch offices for setting up a business in Sharjah. They are:

1. Branch of a Foreign Company
2. Branch of a UAE Company
3. Branch of a GCC Company

Each type has its own set of requirements and companies must adhere to them strictly.

Branch of a Foreign Company

This refers to the branch office of a company established outside the UAE. The parent company must obtain the relevant license to operate in the Emirate.

Documents Required 

The documents required for registering the branch office of a foreign company include:

• License form.
• Verified commercial license and registration certificate of the parent company.
• Parent company’s translated and authenticated Memorandum of Association and its amendments, if any.
• Certified copy of the parent company’s ‘Company Statute’ (for private and public shareholder companies) with legal translation.
• Translated minutes of the meeting of the company’s board of directors or resolution authorising the establishment of the branch.
• Certified copy of the agency contract between the local service agent in Sharjah and the foreign company.

Branch of a UAE Company

This refers to a branch of a company that is already registered in another Emirate within the UAE. To set up such a branch in Sharjah, the business must apply for a license.

Documents Required

The documents generally required for registration are:

• Certified copy of the main company’s trade license and registration certificate.
• Certified copy of the parent company’s Memorandum of Association (MOA) and any amendments.
• Certified copy of the ‘Company Statute’ (for public and private shareholding companies).
• Minutes of the Board meeting approving the establishment of the branch.

Branch of a GCC Company

This refers to a branch of a company based in a Gulf Cooperation Council (GCC) country other than the UAE. To open such a branch in Sharjah, the company requires a license.

Documents Required

The documents required to register the branch office of a GCC company include:

• Certified copy of the parent company’s trade license or commercial registration certificate.
• Certified copy of the company’s Memorandum of Association (MOA) and any amendments.
• Board resolution or meeting minutes authorising the setting up of the branch.

All the documents must be attested by the UAE Embassy in the respective GCC country and the UAE Ministry of Foreign Affairs. The authorities grant approval only after all the requirements are met.

Procedure to Open a Branch Office in Sharjah

Opening a branch office in Sharjah can be simplified by engaging with Corporate Service Providers (CSPs) such as Commitbiz. The professional business setup consultants help you understand local rules, permissible activities, legal form, cost, and timeframe.

Below are the steps to set up a branch of a company in Sharjah:

Step 1 - Decide on the business activity, branch name (must typically match parent company name) and location. For a business setup, choose between mainland or Sharjah free zone company formation.

Step 2 - Prepare the required documents, notarise or attest them for submitting them to the authorities.

Step 3 - Reserve the trade name of the branch with the Sharjah Economic Development Department (SEDD) or the relevant authority. It must be consistent with the parent company name and comply with the local naming rules.

Step 4 - Submit parent company documents and branch application to SEDD (or relevant authority) and obtain initial approval to open the branch.

Step 5 - Secure a physical office/branch location in Sharjah. The lease agreement will be needed for the licence. Ensure that the lease/office space meets Emirate and SEDD requirements, if applicable.

Step 6 - Submit all required documents to the authorities for final approval. Once approved, you will receive the branch office licence.

Step 7 - Fulfill certain additional requirements such as registering the branch with other relevant bodies including the Ministry of Economy of the United Arab Emirates (MOE) and Chamber of Commerce (if necessary).

Depending on your business activity, you may also need other sector-specific approvals from regulatory authorities If the branch will hire employees, set up the labour/employment required registrations, visas, etc.

Once licence and registrations are complete, the branch can begin operations in Sharjah under the parent company’s name.

Ensure ongoing compliance by renewing annual licence, maintaining financial records, and adhering to local regulations. 

Why Commitbiz?

Setting up a branch office in Sharjah offers foreign and local businesses an excellent opportunity to expand their presence in the UAE’s growing market. With its strategic location, investor-friendly policies, and streamlined licensing procedures, Sharjah provides a supportive environment for business growth.

By fulfilling the necessary requirements, such as obtaining parent company approval, appointing a local service agent, securing office space, and acquiring a trade license, companies can successfully establish their branch and begin operations with confidence.

Partnering with Commitbiz business setup consultants allows you to stay compliant with local regulations while you expand your business. Our comprehensive services include VAT registration, intellectual property services, and local sponsor services. Let our experts handle the paperwork - get in touch with us today!