Foreign companies looking to open a branch in Dubai can retain full ownership over their business in Dubai by registering a branch office or a representative office. However, as per the guidelines issued by the UAE government, to open a branch in Dubai, every investor company is required to find and appoint a local service agent who is a UAE national or a company wholly owned by UAE citizens. These local sponsors assist in getting your visas, labour card, immigration cards and such other important documentation but are not involved in the working of your business. Our local agents in Dubai can assist you with foreign company registration in Dubai.
How to Open a Branch in Dubai?
- Step 1: Trade Name Reservation – The first crucial step is to appoint a local agent as mentioned above. This local agent will then first approach the Department of Economic Development (DED) and reserve a trade name for the branch office you wish to open.
- Step 2: Initial Approval by Ministry of Economy– After applying for the reservation of a trade name, the local agent will then apply for an initial approval from the Ministry of Economy (MOE) to open a branch in Dubai. For this, the following documents are needed to be submitted:
- Proof of trade name reservation
- Application forms for registration
- Registration and Licence application forms issued by the Department of Economic Development (DED)
- Memorandum of Association (MoA) of the parent company (notarized)
- Articles of Association (AoA) of the parent company (notarized)
- A power of attorney (POA) for the local director
- A copy of the passport and the naturalization book of the local service agent
- A passport copy of the director
- A no-objection letter issued by the parent company
- A copy of the Certificate of Incorporation of the parent company (notarized)
- A board resolution for opening a branch in Dubai by the foreign company’s management
Note: The MoA, AoA and the Certificate of Incorporation must be translated into Arabic and duly notarized.
- Step 3: Obtain License from Department of Economic Development – Once the initial approval has been obtained from the Ministry of Economy, the next step for the local agent is to apply for obtaining a commercial license from the Department of Economic Development. The documents needed for this include the following:
- The approval needed from the Ministry of Economy
- A statement mentioning the business activities that can be carried out, to be issued by the parent company
- Last two years’ audited financial statements of the parent company
- Copies of all the documents submitted earlier to get the initial approval from the Ministry of Economy
- A copy of the property lease agreement of the branch office in Dubai
Commercial License v/s Non-Trading Representative Office License
A foreign company may obtain a trading branch office license (commercial license) or a non-trading representative office license. The main difference between the two is that with a commercial license, the foreign entity can carry out all the commercial activities covered under the trading license and carried out by the parent company. On the other hand, in the case of a representative office in Dubai, you are not allowed to carry out any commercial activities and can only use the office and the license for marketing and promoting the products or services of the foreign parent company. Depending on your requirement, you can either set up a branch office or a representative office in Dubai. The procedure for setting up both are largely the same.
Get in touch with us if you are looking for foreign company registration in Dubai.
