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How to Register a Branch of a Foreign Company in Dubai: Complete Guide

setting up a foreign branch office in dubai - complete guide
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Are you looking for a guide on how to register a foreign company branch office in Dubai, UAE? Setting up the branch of a foreign company in Dubai becomes effortless with the appropriate knowledge and the right assistance. Dubai is one of the most profitable economies when it comes to setting up businesses. Apart from its elite infrastructure, technological advancement, and corporate-friendly policies, Dubai offers investors 100% ownership of the business.

The guide is thoughtfully composed in order to give you complete information regarding establishing a branch company in Dubai. Delve into it and explore everything you need to know about registering a foreign branch in Dubai.

What Is a Foreign Company Branch Office in Dubai?

A foreign Company branch office in Dubai is referred to as a registered company that is a branch or a franchise of a foreign parent company. The commercial activities at the foreign branch must remain the same as those of the parent company. The branch company must obtain a business or trade license with the same activities and the same name as the parent company.

Difference between Branch Office and Representative Office

If you plan to start either a representative or a branch office in Dubai, you need to learn the difference between both of them as they differ from each other.

A branch office is a sub-office of the entity and is operated by itself in another country apart from the main office where the business is conducted. The branch office functions under the new country’s jurisdiction but is still considered and the ownership belongs to the parent company. The company operates and is managed by the appointed manager in the proposed branch company.

A representative office, on the other hand, is basically an activity of a branch that is aimed to promote and market the products or services of the parent company. The representative office can’t come into a direct agreement for direct sales of any product or service.

Foreign Branch Office Registration in Dubai

A trade license is issued by the Department of Economic Development to international businesses wishing to establish a branch in Dubai. You can apply for your business license with the MOET (Ministry of Economy Tourism in each Emirate of Dubai after having clearance from the Ministry of Economy as the federal authority.

Documents Required for Registering a Branch Office in Dubai

The basic documents required to register a branch of a foreign company in Dubai are as follows:

  • Business plan of your company
  • Passport copy of the owner/shareholder.
  • Visa copy of the owner/shareholder
  • Few name Choices for the company reservation.
  • Lease Agreement – Actual office or Virtual office

When applying for the branch office in Dubai, take into consideration that you will have to provide all the foreign company documents that must be notarized in the home country and also attested by the UAE embassy in the country where the company is operated.

Steps of Setting Up a Branch Office in Dubai

There are some steps that you must follow in order to register a foreign office branch in Dubai. Moreover, all corporate documents must be translated into Arabic and certified by the Ministry of foreign affairs and the Ministry of Justice in UAE.

  • Reserved branch trade name
  • Obtain initial approval.
  • Get pre-approval from the Ministry of Economy
  • Sign the lease agreement.
  • provide all required documents to the government entity.
  • get the Payment order.
  • Pay for the license and acquire the certificate.
  • Followed by the above, all the visa processes and bank account opening of the branch

Cost of Setting Up a Branch Office in Dubai Mainland

Mainland company setup in Dubai is the most favored option for branch office setup. The cost of opening a foreign branch in Dubai will typically depend on a few factors including the location where you want to establish the branch, jurisdiction i.e. free zone or mainland, activities you want to carry out, and type and size of the business. The average cost for setting up a branch office in Dubai mainland is as follows:

Cost of Setting up a Branch Office of a Foreign Company in Dubai
Sr. No.ParticularsFee TenureAmount in AED
1Initial Approval FeesOne Time120.00
2Name Approval FeesOne Time620.00
3Tasheel FeesOne Time500.00
4Notary Verification FeesOne Time350.00
5MOA/LSA-Notary FeesOne Time1,000.00
6License Fees ApproximatelyPart- Annual10,000.00
7Immigration Card FeesAnnual750.00
8Stamp of the CompanyOne Time100.00
9Labour Card FeesOne Time1,000.00
10MOE FeesPart- Annual13,500.00
11Investor Residence visa FeesPart-3 YearsNA
12UAE national Agent feesAvyanco Fees10,000.00
13Corporate Service FeesAvyanco Fees5,000.00
14Office or Shop RentAnnualBased on the premises
15MOE refundable depositOne time50,000.00
16Foreign documents attestation and TranslationOne Time6,000.00
 Total 98,940.00

** All visa applications and the cost are additional.

**The government fees vary from authority to authority.

** The above fees are just and approximate and the price is subject to change while forming the company.

Cost of Setting Up a Branch Office in one of the Free Zones in UAE.

Cost of Setting up a Branch Office of Foreign Company in Free Zone-Dubai
Sr. No.ParticularsFee TenureAmount in AED
1License & Registration FeesPart Annual32,500.00
2License Fees ApproximatelyOne Time620.00
7Immigration Card FeesAnnual2,000.00
8Stamp of the CompanyOne Time100.00
13Corporate Service FeesAvyanco Fees10,000.00
14Office or Shop RentAnnualBased on the premises
15Foreign documents attestation and TranslationOne Time6,000.00
 Total 51,220.00

** All visa applications and the cost are additional.

**The government fees vary from authority to authority.

** The above fees are just and approximate and the price is subject to change while forming the company.

 Moreover, consulting with an experienced business setup consultancy like Avyanco will help you minimize the hassles that may come along with the process as they offer the right guidance on how to seamlessly acquire a license for your branch office in Dubai.

Benefits of Setting Up a Branch Office of Your Company in Dubai

A branch office in Dubai comes with various benefits and is a helpful tool for companies of any size to establish themselves in Dubai whilst keeping complete ownership of the company. The branch office setup process is relatively simple, effective, and straightforward without requiring you to give up on ownership.

  • Favorable tax system
  • Strategic business location
  • 100% ownership of the business
  • Enter the MENA region from a steady base.
  • Simple and effective administrative process and auditing

How Avyanco Can Help You Register a Branch of a Foreign Company?

Whether you want to set up a representative office in Dubai, undertake a company registration in Dubai, or want to open a branch of a foreign company in Dubai, a trusted and experienced business setup consultant can help ease the process. Avoid the hassle that may come during the process with the help of our expert assistance. Avyanco is the trusted and go-to business setup consultant working actively in and across UAE aspiring to help potential investors successfully start businesses.

We make sure to assist our clients with expert and effective advice on how to apply for foreign office license registration in Dubai as well as provide help in the documentation submission process. As a full-fledged consultancy service, we offer end-to-end assistance on every related including registration, licensing, documentation, PRO services, and more.

If you still have any concerns regarding the business setup process in Dubai, feel free to contact us. We will respond promptly by answering all your queries and concerns.

AUTHOR PROFILE
Avyanco Business Setup Consultancy CEO Jashvant Prajapati

Jashvant Prajapati, founder and CEO of Avyanco Group of Companies; Business Setup Consultancy, Avyanco Tax and Accounting LLC, and Avyanco Auditing LLC. He keeps a varied portfolio with core expertise in investment management, corporate structuring, commercial law, business consultancy, lead management, business planning and market research. Aspire to help potential entrepreneurs and investors to come ahead and form their companies in highly emerging economies like UAE.

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About the Author

jashvant-avyanco-business-setup-consultancy-ceo

Jashvantkumar Prajapati

(Founder and CEO of Avyanco Group of Companies; Business Setup Consultancy, Avyanco Tax and Accounting LLC, and Avyanco Auditing LLC.)

He keeps a varied portfolio with core expertise in investment management, corporate structuring, commercial law, business consultancy, lead management, business planning and market research. Aspire to help potential entrepreneurs and investors to come ahead and form their companies in highly emerging economies like UAE.