If you have taken the time to research how to set up a business in the UAE, you will know that the most popular starting options are on the mainland and in the free zone. Both offer many amazing benefits. Companies on the continent can trade and pick up potentially lucrative government contracts from anywhere in the United Arab Emirates. Free zone companies, on the other hand, can benefit from capital repatriation and profits, exemption from tariffs and the absence of currency restrictions.
But while both offer great opportunities for new entrepreneurs in the UAE, they are not the only ones. If you already have your business elsewhere, opening a foreign branch can be much quicker and cheaper. You can manage this branch just like your existing business. It is simply an extension of your business without a separate legal entity. You are allowed to carry out the same business activities as you would anywhere else, but here in the United Arab Emirates. It also trades under the same name as your existing company.
And with the help of professional business setup in Dubai company, setting up foreign branches is easier than ever.
In this article we will look at:
- Difference between the branch and representative office in UAE
- Steps to open a foreign office in UAE
- Cost of opening a foreign branch in the UAE
Difference between Representative and Branch Offices in the UAE
While they are certainly similar, the branches should not be confused with the representation. If you open a branch, you will be allowed to trade and make a profit in the United Arab Emirates – provided you only engage in the same activities as your parent. Representative offices, on the other hand, do not claim profits in the UAE. They can only promote the business and pass it on to the parent company.
Simple Steps to Start a Foreign Branch Office in the UAE
The first two steps in setting up a business in the United Arab Emirates are choosing a company name and a description of your business activities. However, since the branch works within your existing corporate image, these steps are not necessary. For this reason, setting up a branch is even easier – with the right care, of course. A professional business setup service company can guide you through the following process:
Choose a Professional Service Agent
All branches need service employees. The agent is responsible for registering your trade name and managing the approval and application process on your behalf. However, the agent does not own or control your company.
Apply for Branch License
This is a two-step process. You must first obtain approval from the United Arab Emirates Ministry of Economy (MES). If you are successful, you will receive a letter of approval to submit when applying for a license. Your license application will be submitted to the Ministry of Economic Development. At this stage, you will also need to submit some or all of the following documents:
- Proof of identity and addresses of directors and shareholders
- Copies of passports for shareholders and directors
- Copy of trade name confirmation
- Memorandum of Association (MOA)
- Articles of Association (AOA)
Find an Office Space
Every branch needs an office so you need to secure a room in UAE. After you sign the dotted line, your lease agreement must be submitted to the Ministry of Economy.
Bank Account and Visa Applications
Before starting to work with your branch in the UAE, you must create the last final applications. The first is to apply for your visa. As part of this process, you must submit biometric information and undergo a medical examination. You can also support your relatives with their visas, such as your parents, spouse or children. Lastly, you need a company bank account to trade in the UAE. A professional business setup service company can also help with this process by understanding your needs before offering advice on the most appropriate options.
Cost of Opening a Foreign Branch Office in the UAE
Without a clear understanding of the nature of your business, it is difficult to estimate the costs of setting up a foreign branch in the United Arab Emirates. For full cost details, contact a professional business setup in Dubai Service Company for a free consultation.
How Professional Business Setup Service Company Assist
All companies need a license to trade in the UAE – including foreign branches. And while the steps involved are not very complicated, some prior knowledge is required. More specifically, it is important to ensure that all your business permits and visa applications are completely error-free. This can be a little stressful. As we recommend throughout the article, a quick way to get up and running is to work with a business setup in Dubai expert.
Professional business setup service companies offer the best solutions to start your business in UAE. Get fast, reliable and unbiased advice on your unique business facility needs. They can help you choose the right type of license for your business and guide you through the entire process from start to finish. You can allow us to take care of company registration while you focus on your business. And working with them means you get the best budget and cost-effective solutions to make your business dreams come true.