How to Open a Branch Office in Dubai, UAE
Expanding your business into the UAE by establishing a branch office offers numerous strategic advantages and access to a thriving market. Undoubtedly, the UAE is a business hub and home to hundreds of regional headquarters in the Middle East.
Why choose the UAE? For various reasons, budding entrepreneurs and global corporations set up companies in the UAE. One reason is the establishment of several free zones in UAE, special economic zones that provide companies with flexibility, infrastructure, and great tax benefits while maintaining 100% business ownership.
In this blog, we provided a comprehensive guide on the process, benefits, and legal requirements for setting up a branch office in the UAE and assisting international businesses in their expansion efforts.
Benefits of Establishing a Branch Office in UAE
- Market Access
First, you gain direct access to the UAE’s dynamic and rapidly growing market. Also, leverage the UAE’s strategic location as a gateway to the Middle East, Africa, and Asia. - Brand Presence
Having a physical location in the UAE enhances your brand presence and credibility. It also builds stronger relationships with local customers, partners, and stakeholders. - Operational Control
Maintain operational control and consistency with your global business standards. Benefit from the UAE’s business-friendly environment and infrastructure.
How to Open a Branch Office
Documentation and Approvals
- Understand Legal Requirements
A branch office is an extension of the parent company and can conduct business activities similar to the parent company. With that said, the branch office must obtain a license from the relevant UAE authority, such as the Department of Economic Development (DED) for mainland businesses or the respective free zone authority. - Appoint a Local Service Agent (LSA)
Mainland branch offices require the appointment of a Local Service Agent who facilitates government processes and ensures compliance with local regulations. The LSA does not hold equity or have management control.
Documentation and Approvals
- Required Documents
Parent company’s certificate of incorporation. Memorandum and Articles of Association. Board resolution approving the establishment of the branch. Power of attorney for the representative in the UAE. As for approvals, obtain initial approval from the relevant authority. Then, Secure a trade name and complete the licensing application - Office Space and Visas
Lease office space that meets the requirements of the local authority. Apply for visas for employees, ensuring compliance with UAE labor laws - Open a Corporate Bank Account
Open a corporate bank account in the UAE to manage financial transactions and operations efficiently.Strategic Advantages of a Branch Office Structure in the UAE
- Cost Efficiency
ranch offices often require lower setup costs than fully-fledged subsidiaries. Benefit from streamlined administrative processes and reduced operational expenses. - Full Ownership
Unlike some business structures, branch offices allow 100% foreign ownership, providing greater control over operations and profits. - Tax Benefits
Utilize favourable tax conditions, including no UAE corporate or personal income tax. Learn more about corporate tax. It’s
Open a Branch Office in Dubai with NH Management
NH Management aims to guide international businesses in setting up a branch office in the UAE, ensuring compliance with legal requirements and maximizing strategic benefits. Companies can effectively expand their presence in the UAE market by understanding the necessary steps and advantages. Contact our business consultants via info@nhmanagement.com or call +971 4 2221327 to learn more.
