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Want To Setup a Representative/ Branch Office In Dubai

This is one of the way to enter into a new market. The Representative setup is cost effective and Branch office is very common in the UAE. Branch office can do business activity like its parent company and can earn profit whereas the Representative office can be established in the UAE. But the representative office cannot earn profit and can only promote the product and services of the Parent company. In other words the Representative office is meant for the promotional activity of the product and services of the company whereas Branch office and conduct business activity. Representative offices are established in foreign countries to make the company recognized by their promotional and marketing activities which give a new start to business in the future. Representative companies can be established easily.

Four Types of Branch companies in the UAE

Corporate Shareholder Office:- It can be owned by foreign companies as well as by the UAE residents. 

Branch Office:- It can be run by a single corporate shareholder cannot run by multiple shareholders. It uses the Article of Association of the Parent Company. It is the most Common setup in the UAE.

Representative Company:-  It is set up to represent the parent company into the foreign market. At the same time not allowed to make profit for the parent company. It is the most cost effective form of the Branch company.

Subsidiary company:- It is work inside the UAE whether the parent company is anywhere else in the world. It is considered as a 100% Local Company and enjoys independent structure.

The Company will trade in the UAE but are going to manage from overseas then a Corporate Shareholder office or Branch office is the best. If you wish to manage a company independently then the Subsidiary Company is the best option.  

Manager appointment is Mandatory

A Manager appointment is compulsory to represent a company into a new foreign market.

Bank Guarantee

A  Branch office setup will require AED 50,000 Deposit as a bank guarantee which you neither can take back nor can be used till your license is active but it is refundable. The guarantee is to be made in favor of the Ministry of Economy. 

Registering with Members of the Chamber of Industry is a must.

Steps for Setting up Branch office

Name Approval for the business

Submission of Application

License fee payment

Get Tenancy Certificate

Complete office setup task

Alya Almarzooqi Auditing Role:

We will help you from start to end in setting up your representative/Branch office. We will give you guidance in selecting the office premise location, Bank account opening assistance, preparing, and filing all the legal documents with the government authorities. Contact us for the best success story of your business setup in Dubai.