BRANCH OF FOREIGN COMPANY

The formation of a company by a foreign entity avails business ownership in UAE, for the foreign company, under the Commercial Company Law in the UAE. For this purpose, they are required to incorporate a Branch or Representative Office (RO) in the UAE, which permits 100% ownership by the mother company. The incorporation process comes with a whole scale of legal procedures ensuring engagement in commercial activity similar to its home jurisdiction and earning profits from the same. Without a sound support one might experience a complete loss of time and money in setting up a stable business enterprise.

RO is not legalized to earn profits within the UAE and its activities are limited to marketing or promoting the products and services of its foreign parent company in the UAE.

Both Branches and ROs must operate under the authority of Ministry of Economy or under a concern Free Zone authority where it’s registered in the name of the foreign company, and both are required to appoint a National Service Agent (NSA). However, if the company is registered in free zone then in that case appointment of national agent is not required.

AS A FOREIGN COMPANY IN THE UAE YOU ENJOY THE FOLLOWING PERKS:

  • Foreign companies can retain 100% foreign ownership in the UAE;
  • Foreign company is not required to show more than 2 years of incorporation and business experience in its home country (some Free Zones require longer);
  • The company may legally conduct the approved activity in its licence anywhere in the UAE, including FREE ZONES. (CLICK ON FREEE ZONES to go to FREE ZONES SECTION)
  • No restrictions on the location where the company can rent/buy office premises;
  • The government has permanently waived off any paid-up capital requirements.
  • As the NSA, it has multiple signatories who are available all year round, unlike individual local partners who frequently travel in the summer months.

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